article: Millionnaires Go Missing

Hasn’t the last several years demonstrated that the rich getting richer isn’t a rising tide? Bush gave them the biggest tax cut in history and what did it do? We replaced GM with Wal-Mart and doubled our national debt. Where’s the growth? Outsourcing and insourcing are at all time highs. Where is the trickle down and all these jobs that were supposed to come from the rich? Instead the poor and middle class are being faced with tighter than ever job markets combined with ever increasing cost of living.

Supply and demand is an equilibrium. You are using only one side to justify your argument. How can you say that “you must increase production first, this will lower prices to create demand” without telling the other side. Why would you want people to artificially create production when there is not yet demand for it? Why can’t you first increase demand which will entice increased production? Why would you give tax cuts to a home builder who then builds homes with that money instead of giving the low and middle class more money and then they turn around and create the demand for which the rich then build more homes? Doesn’t that seem a lot more efficient? If the increase in demand cause prices to rise, people will have incentive to then produce that product, which will then lower the price.

You pretty much lost your whole argument when you say “Only in a zero sum game will taxes have no effect. Tax cuts work because it increases the money supply.” Isn’t life pretty much a zero sum game? I mean if you want a dollar, you have to go take it from someone. Only with technology and innovation do all of our lives collectively improve. That’s what’s happened in the past 100 years. But you pretty much admitted my point, giving tax cuts to the rich can only increase tax revenues if there is an increase in the money supply(inflation). Inflation is a defacto tax on the poor. So in the end, the rich get tax cuts and the poor get inflation. How much sense does that make? So you still haven’t proven how tax cuts for the rich results in an increase in revenues without an increase in the money supply. Don’t get me wrong, I am not a tax the rich cause they deserve it person, but before we start talking tax cuts, shouldn’t we figure out a way to pay off our $11,000,000,000,000 credit card bill?

 

Well there isn’t one product in the economy. It’s simple mathematical logic. If there is more of something, it’s value drops. So if there is more money in the system, it’s value drops. When new money is created for the guy making 30k, the value of existing dollars drops. When the dollar drops in vallue, farmers want more money for their products. So McDonald’s has to increase the price to $1.01 to make up for the increase in their food cost. So 3,000,000 consumers had to pay 1 cent more to make up for the new guy making 30k. So again, you have not explained how tax cuts result in an increase in the revenues without an increase in the money supply.

 

Then less gasoline, other transportation costs such as mileage, chemicals, printing/advertising, etc. = they still net $8 to 10 per hour, right?