Tax
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Will this cure the debt crisis?
We are exporting much of our disposable cash to China and investors are sitting on the rest of the disposable cash because consumers can?t spend because investors are sitting on the rest of the disposable cash. Therefore, government must supply disposable cash to consumers by investing $1T annually in much needed infrastructure.
Consider this apparent contradiction:
On one hand, by printing money, the Treasury could cause inflation.
On the other, by printing money, China is eating our lunch with its inflation under 3.3%!
Q: Why do conservatives worry most about inflation when the Fed can stop inflation on a dime?
A: Because they don?t understand these economic truths:
Waste = Time X Idle Resources (unemployed millions, closed plants, etc.)
Wealth (GDP) = Time X Idle Resources X Investment
By investing in Idle Resources, a successful economy minimizes waste and maximizes wealth. Every minute that Idle Resources spend NOT creating wealth is a lost opportunity that cannot be regained.
Q: How does the GDP grow?
A: With $xxx?, Investor A creates a product by hiring Idle Resources (Contractor B, Vendor C, Utility D, etc.). With the $xxx?, B, C, and D, etc., hire workers and purchase from vendors who pay salaries to employees who spend money at retailers who hire B, C, and D, etc., ad infinitum. By the multiplier effect, $xxx? grows as much as 250% (according to the Congressional Budget Office) and is added to the GDP.
Q: Who is Investor A?
A: Exxon can construct an oil well or the federal government can construct the Interstate Highway System.
Q: Does it matter where government gets the money?
A: Not to the Idle Resource that gets hired. As long as the money hires Idle Resources to create wealth, the source can be tax revenue, bond sales, or computer keyboards.
Q: Can government create money out of thin air?
A: China does it successfully. The Fed did it with TARP and with many hidden deals.
Q: Doesn?t printing money cause inflation?
A: Inflation occurs when the money supply grows faster than the goods supply. When printed money hires Idle Resources to create goods, inflation cannot occur because both money and goods grow equally. To insure that only Idle Resources are hired, government monitors prices, wages, and unemployment as a signal to slow printing money and building infrastructure.
Q: In our history, have we ever printed large amounts of money successfully without causing inflation?
A: Yes, indeed! Lincoln financed the Civil War by (really) printing ?greenbacks? which never lost their value. Roosevelt financed World War II by having the Fed buy Treasury securities ??in any amount and at any price?? Without serious inflation, workers and returning veterans used those dollars to create our golden age. Peace or war, there is no logical reason that printed money will cause inflation by hiring Idle Resources.
Q: Will other nations accept our printed dollars?
A: Other nations will compare our currency to theirs by our relative productivities and GDP growth, both of which will increase with heavy infrastructure investment.
Q: How will printing money relieve the debt crisis?
A: Rather than our debt, it is our debt-to-GDP ratio that matters - somewhat. But, to reduce the debt, we would need an impossible stream of large surplus budgets and trade balances. Therefore, we must reduce our debt-to-GDP ratio by lifting GDP with infrastructure investments made by printing money when there are Idle Resources.
Q: Why is our debt so large?
A: To finance the deficit, the Fed has enriched the rich over the last century by paying interest on bonds sold at market rate. As a service to the financial market, the Fed should only sell bonds at an interest rate slightly above the inflation rate. The rich (and China) will gladly buy our bonds at any rate.
Q: How should we finance a budget deficit?
A: The Fed should lend the amount of the deficit to the Treasury. Since both are government institutions, the interest rate would have no effect on the budget. Therefore, a zero percent rate would end debt interest expense and end the debt crisis.
Q: Is borrowing from a government bank more inflationary than borrowing from a private bank?
A: No, it is actually less inflationary because we would no longer increase the money supply with debt interest payments. Indeed, during boom times, when inflation is a threat and the budget has a rare surplus, the Fed would no longer increase the money supply by redeeming bonds.
Q: Will the debt keep growing as before?
A: Yes, but it will not include the amount of debt interest currently paid to bond-holders. And, since there will be no debt crisis, our debt will just be what we owe to ourselves, innocuous numbers in a ledger.
MTR: Please answer the question.
Why not just state the flaws in my argument - if you find some?
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It's survey time everyone!?
1. What time did you go to bed last night?
2. Do you miss high school?
3. I love . . .
4. I support . . .
5. Last song listened to. Add link
6. 2+2=5 or 4? (reference)
7. Shut up and take my money! (reference)
8. Favorite band
9. Favorite singer
10. Favorite food. Add link to picture
11. What you did today
12. What are you excited for next month?
13. When you were a kid . . .
14. Free healthcare or paying little taxes?
15. Socialism vs. Capitalism: prons and cons would be good
16. View on gay marriage (should be pretty obvious)
17. When will wwiii happen and what will be the spark
18. Loud engines make you . . .
19. Last time you brushed your teeth . . .
20. Favorite Pixar movie
21. Favorite movie in general
22. Movie you're looking forward this year
23. Album you're looking forward for this year
24. Last concert you went to
25. DONE!
JUST KIDDING. I missed one:
26: Go on your ipod. Click shuffle, what song is it? Do this for the next three songs.
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Why did Jeff Session's pretend his budget was Obama's?
Jeff Sessions(R-Alabama) presented a budget that he pretended was Obama's. But it lacks details on tax breaks, it doesn't specify spending cuts, and it is only similar in purported numbers.
Can't he tell the difference between 50-60 pages and the 2,000 pages of a real federal budget?
http://abcnews.go.com/m/blogEntry?id=16363981
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when you consider all taxes ALL taxes paid to all gov. taxing bodies do the rich or middle class pay the most.?
that is % of income. in il. you pay state fed. and city. on food , income, utilities ,property and all the hidden taxes you may not know about.
back you have an obtuse mind.
for those that worry about the pennies while the trillions slip thru our hands you have myopic a mindset.
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i made 15000 and i had 2000 taken out for federal and state income taxes how much will i get back on my refund?
Single and no dependants and no house that I own this is in va
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Can you find the flaws in this logic?
Please state the paragraph number and the flaw:
1.We are exporting much of our disposable cash to China and investors are sitting on the rest of the disposable cash because consumers can?t spend because investors are sitting on the rest of the disposable cash. Therefore, government must supply disposable cash to consumers by investing $1T annually in much needed infrastructure.
Consider this apparent contradiction:
On one hand, by printing money, the Treasury could cause inflation.
On the other, by printing money, China is eating our lunch with its inflation under 3.3%!
2.Q: Why do conservatives worry most about inflation when the Fed can stop inflation on a dime?
A: Because they don?t understand these economic truths:
Waste = Time X Idle Resources (unemployed millions, closed plants, etc.)
Wealth (GDP) = Time X Idle Resources X Investment
By investing in Idle Resources, a successful economy minimizes waste and maximizes wealth. Every minute that Idle Resources spend NOT creating wealth is a lost opportunity that cannot be regained.
3.Q: How does the GDP grow?
A: With $xxx?, Investor A creates a product by hiring Idle Resources (Contractor B, Vendor C, Utility D, etc.). With the $xxx?, B, C, and D, etc., hire workers and purchase from vendors who pay salaries to employees who spend money at retailers who hire B, C, and D, etc., ad infinitum. By the multiplier effect, $xxx? grows as much as 250% (according to the Congressional Budget Office) and is added to the GDP.
4. Q: Who is Investor A?
A: Exxon can construct an oil well or the federal government can construct the Interstate Highway System.
5.Q: Does it matter where government gets the money?
A: Not to the Idle Resource that gets hired. As long as the money hires Idle Resources to create wealth, the source can be tax revenue, bond sales, or computer keyboards.
6.Q: Can government create money out of thin air?
A: China does it successfully. The Fed did it with TARP and with many hidden deals.
7.Q: Doesn?t printing money cause inflation?
A: Inflation occurs when the money supply grows faster than the goods supply. When printed money hires Idle Resources to create goods, inflation cannot occur because both money and goods grow equally. To insure that only Idle Resources are hired, government monitors prices, wages, and unemployment as a signal to slow printing money and building infrastructure.
8.Q: In our history, have we ever printed large amounts of money successfully without causing inflation?
A: Yes, indeed! Lincoln financed the Civil War by (really) printing ?greenbacks? which never lost their value. Roosevelt financed World War II by having the Fed buy Treasury securities ??in any amount and at any price?? Without serious inflation, workers and returning veterans used those dollars to create our golden age. Peace or war, there is no logical reason that printed money will cause inflation by hiring Idle Resources.
9.Q: Will other nations accept our printed dollars?
A: Other nations will compare our currency to theirs by our relative productivities and GDP growth, both of which will increase with heavy infrastructure investment.
10.Q: How will printing money relieve the debt crisis?
A: Rather than our debt, it is our debt-to-GDP ratio that matters - somewhat. But, to reduce the debt, we would need an impossible stream of large surplus budgets and trade balances. Therefore, we must reduce our debt-to-GDP ratio by lifting GDP with infrastructure investments made by printing money when there are Idle Resources.
11.Q: Why is our debt so large?
A: To finance the deficit, the Fed has enriched the rich over the last century by paying interest on bonds sold at market rate. As a service to the financial market, the Fed should only sell bonds at an interest rate slightly above the inflation rate. The rich (and China) will gladly buy our bonds at any rate.
12.Q: How should we finance a budget deficit?
A: The Fed should lend the amount of the deficit to the Treasury. Since both are government institutions, the interest rate would have no effect on the budget. Therefore, a zero percent rate would end debt interest expense and end the debt crisis.
13.Q: Is borrowing from a government bank more inflationary than borrowing from a private bank?
A: No, it is actually less inflationary because we would no longer increase the money supply with debt interest payments. Indeed, during boom times, when inflation is a threat and the budget has a rare surplus, the Fed would no longer increase the money supply by redeeming bonds.
14.Q: Will the debt keep growing as before?
A: Yes, but it will not include the amount of debt interest currently paid to bond-holders. And, since there will be no debt crisis, our debt will just be what we owe to ourselves, innocuous numbers in a ledger.
MTR: So, no flaws?
Joe in Texas: The fat cats are not sitting on my disposable income; they are sitting on the nations's disposable income. The money supply is too low. Get It?
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Does cash money vanish once its spent?
One of the right wing radio 'entertainers' suggested that if 'the government' spends tax dollars, it vanishes into thin air never to be seen again, but if a PAC spends money on an attack ad, somehow that money lives on forever. "Obama spent a zillion dollars and nothing happened and now the money is gone!" That's fairly close to a direct quote. Are there really two different kinds of money?
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