I have been seeing these leftwing politicians coming on T.V. all over the place lately making the absurd claim that because clinton created more jobs with higher taxes, and Bush created less jobs with lower taxes that it somehow means that Higher taxes lead to job growth. Are the liberal leaders just intentionally lying to the public, or are they really that clueless in terms of basic economics? Is there a single liberal on this site who would be willing to make the argument that higher taxes leads to increased job growth? The leaders in the dem party must either believe the people are completely clueless, and they can get away with this lie, or else what scares me more, is that some of these democratic leaders may actually believe this to be true.
I'm only going to answer theoretically, small 't', since I think these factors could be more correlated than they are "causalated". In theory, a government could raise taxes, fire up a war machine, and conscript its population, both of which would of course create jobs.
Ok, you got me there, you could drastically increase the size of government and drastically increase taxes, but the money would be spent far less efficiently, and you would probably kill as many if not more jobs then you create. Plus the bulk of clintons Job growth came from the private sector, so implying that clinton raising taxes led to job growth is ridiculous, it was because of the tech bubble pure and simple, Anyone who says that raising taxes during the clinton admin led to private sector job creation is either flat out lying or doesnt understand basic math.
And that's really it right there. To say that lower taxes "cause" higher employment, or the converse, simply ignores too many other variables that may be (or may not be) in force. You add another good example of job growth happening for the wrong reasons: mania. Though of course you pro traders love that. ; )
To say that lower taxes, causes higher employment may not be 100% true all the time, But to say you can achieve greater job growth through higher taxes, and growth in the government sector as opposed to the private sector is a flat out lie, government does not dispatch capital as efficiently as the private sector, EVER.
And that surprises you? Speaking of taxes, liberals think tax cuts give people money, as if it's the government's money to begin with when in fact the government is a parasite.
As ususal the argument ignores who's being taxed or given a tax break; the wealthy always trying to stowaway on middleclass tax breaks.
because it's irrelevant, that's why it's ignored. the people - rich, poor or middle class, spend far more efficiently than the government does. that's the basis for the argument.
Its ignored because they use it as cover to sneak in under. Obviously wealthy aren't going to create new demand since what they want they buy. I'm talking about wealthy not desperate to be wealthy. The only thing they'd create is a further padded portfolio.
Bullshit, everything isnt necessarily about demand, just because the wealthy dont go out and blow their wad on the latest ferrari doesnt mean they dont play an integral part in the economy. What about investment in new ideas? You really think all those tax dollars you pay to the government go into speculating on new science/ideas? Not even close, it is the rich who fund the companies with new products, who make ideas work, they invest in companies, so that companies can get going and create jobs. Government just takes the money and invests it in bloated government salaries at 10 cents on the dollar, with nothing to show for it and no new ideas. The only new thing government comes up with is how to produce more taxes, and increase their own salaries at 10% efficiency.