PatriotsReign

From CNNMoney this morning.....

Lower prices could mean deflation and double-dip recession - Jun. 8, 2010

"Only a few months ago, inflation was the main worry of many economists. But falling prices for the raw materials of many industries, including lumber, have set off deflation warning bells for some economists, who worry that they could signal another global economic downturn.

While consumers love falling prices, deflation can cause far more damage to growth than inflation can. Lower prices cause businesses to cut back production, which can lead to layoffs, which can then cause further declines in demand due to falling incomes and consumer spending, creating a downward spiral."

Definately cause for concern for all of us. The only way deflation can be good is if you remain employed and reap the benefits of falling prices. But for the country and world as a whole, there is nothing good about it.

DE-flation, not IN-flation!

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Patters

It's interesting how much globalization has complicated economic recovery. I think both Democrats and Republicans saw globalization as good for world peace and economies, but now it seems as if the international community is fighting fire after fire to prevent the problem from spiraling out of control. Making matters worse is that nations in general are not that interested in cooperating. I think from an economics perspective we're in unchartered territory, but I think the only way to fix the mess is to impose a hefty one time tax on the extremely wealthy.

Real World

ahahahahahahahahahahahah!!!!

Tax the rich...ahahahahahahahahahahahah!!!!

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

khayos

LOL yeah, that's the best idea ever! Tax all the individuals that provide the jobs! And we wonder why there's so much of disconnect between line worker and CEO pay...

Patters

Why should shareholders pay lower tax rates than working people? Long term capital gains tax is only 20%, far less than most income tax brackets. While I can sort of understand obsequiousness to the rich, I fail to understand why you would favor giving them lower taxes than everyone else. And, besides that, you've merely objected to a solution, rather than proposed one. What do you think we should do? Any specifics?

Real World

Even if a 100% tax were levied on the richest people, it wouldn't be enough to pay off the debts we face. Which is an aside from that fact that a one time influx of cash, does nothing to solve the causes of the problems we face. That's the establishment way of dealing with problems though. When in doubt, just throw more money at the situation. Works like a charm.

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897

Wolfpack

And had actually had the audacity to say "one time"!!

chicowalker

This is different than a 1-time tax on the "extremely wealthy."

Patters

How do you mean? I didn't really define the tax. It could be an assessment on top of their current taxes or it could be a substantial increase in their capital gains tax or a combination of taxes.

Real World

And he then called it a "solution" to boot. So fellas, when your wives go out shopping for shoes, blowing up your credit card, constantly spending money you don't have, don't try to contain the spending. Just go out and get another 3 jobs. That, or put a gun to your bosses head, and demand a raise, since it's he who should pay for your wife's shopping.

Frauders, investments are made with taxed money. Also, if you overtax investment dollars, fewer people will assume the risk that investing money brings. Fewer investers, means less capital changing hands, and subsequently, less growth. Less capital and growth, means fewer jobs and opportunity. As always, the problem isn't with taxing more. The problem is in trying to get the gubmit to spend less. I would like to think that $3-4 trillion per is more than enough, if not too much, don't you?

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"The most difficult subjects can be explained to the most slow-witted man if he has not formed any idea of them already; but the simplest thing cannot be made clear to the most intelligent man if he is firmly persuaded that he knows already, without a shadow of doubt, what is laid before him."
Leo Tolstoy, 1897