That's why capital should be taxed lightly. It creates jobs, which in turn leads to lots of other taxes being paid. None of Buffet's employees created a single job. Sure they did. The bought groceries, cars, houses, TV's, may have paid somebody to mow their lawns, etc. That creates jobs as well. 2/3 of the economy is powered by consumer spending.And here, in a nutshell, is the philosophical difference between "supply-siders" and "demand-siders."Supply-siders believe that allowing wealth to flow to the highest reaches will benefit all of society by eventually "trickling-down." We, as a Nation, have engaged in supply-side economics since 1980. The economic metrics suggest the experiment hasn't worked out all that well.Demand-siders believe that it is consumer demand that fuels economic growth, that if the populace has the money, their consumer demands will drive business growth and expansion. As Churchy points out: 2/3rds of our economy is consumer driven. If the consumer has no money, the economy languishes.Despite all the supply-side rhetoric that we've been bombarded with for the past thirty years, it was telling that, when our economy hit the skids, the tax rebate checks were quickly stuffed in the mail. Even the supply-siders know (although they rarely admit it) that the consumer is all important. Without the consumer, venture capitalists can create any new business or service they want, but the business will fail unless it can attract customers, and the customers are your average Americans.
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