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Why the Bush Tax Cuts Worked | Jeffrey A. Miron | Cato Institute: Commentary: "Capital is mobile: when it is taxed heavily here, it flees somewhere else, meaning lower investment and employment in the United States. And because capital income taxes discourage investment or drive it overseas, they generate little if any tax revenue."
"their real objection is that the Bush tax cuts (allegedly) favor the wealthy. This claim is true in part; lower tax rates on the high income earners are obviously beneficial for those earners. Yet this is only part of the story. To stimulate work, saving, and investment, tax cuts have no choice but to favor the taxpayers who respond most to taxes, as well as those likely to save and invest. That means high income earners. So policy must accept some inequality in exchange for more efficiency."
Monday, October 04, 2010
Are Rising Imports a Boon or Bane to the Economy? | Daniel Griswold | Cato Institute: Commentary
Are Rising Imports a Boon or Bane to the Economy? | Daniel Griswold | Cato Institute: Commentary: "More than half of what we import consists of goods consumed by producers — capital machinery, raw materials, parts and other intermediate inputs. Those imports help us produce more, not less. This is one reason why, over the past year, imports of manufactured goods have been rising along with domestic manufacturing output.
In the long run, imports spur growth by forcing domestic producers to be more efficient and productive. Like competition generally, imports weed out the less-productive domestic producers, leaving the market to more-competitive U.S. companies."
"Obsession with the trade deficit also ignores the fact that the dollars we spend on imports quickly return to the United States. If they are not used to buy our goods and services, they are spent on assets, such as real estate, stocks and Treasury bonds. This inflow of capital also helps to fuel growth by keeping interest rates down and providing capital to build factories and expand output."
"Compared with a perfectly proportional correlation of 100 percent, the correlation between imports and GDP is a strongly positive 62 percent.
Politicians myopically focus on exports, but the correlation between rising exports and rising GDP is actually weaker, at 45 percent, than the connection between imports and GDP"
In the long run, imports spur growth by forcing domestic producers to be more efficient and productive. Like competition generally, imports weed out the less-productive domestic producers, leaving the market to more-competitive U.S. companies."
"Obsession with the trade deficit also ignores the fact that the dollars we spend on imports quickly return to the United States. If they are not used to buy our goods and services, they are spent on assets, such as real estate, stocks and Treasury bonds. This inflow of capital also helps to fuel growth by keeping interest rates down and providing capital to build factories and expand output."
"Compared with a perfectly proportional correlation of 100 percent, the correlation between imports and GDP is a strongly positive 62 percent.
Politicians myopically focus on exports, but the correlation between rising exports and rising GDP is actually weaker, at 45 percent, than the connection between imports and GDP"
Economic Malpractice | Richard W. Rahn | Cato Institute: Commentary
Economic Malpractice | Richard W. Rahn | Cato Institute: Commentary: "there was no case where a big increase in government spending — correctly measured as a percentage of gross domestic product — led to both higher private consumption and significant job growth"
"a prudent person responds to tax and regulatory uncertainty by taking fewer risks, such as expanding the business rapidly or hiring new people."
"Government can create government-sector jobs at the expense of private-sector jobs, but not at a higher real wage — which is one reason why a growing welfare state and/or a socialist economy always fail."
"a prudent person responds to tax and regulatory uncertainty by taking fewer risks, such as expanding the business rapidly or hiring new people."
"Government can create government-sector jobs at the expense of private-sector jobs, but not at a higher real wage — which is one reason why a growing welfare state and/or a socialist economy always fail."
Campaign For Liberty — Taxing and Spending
Campaign For Liberty — Taxing and Spending: "the President, for the umpteenth time, described leaving the existing tax rates alone as 'spending'. He said we had 'better things to spend our money on' than not raising taxes.
Did he really say 'our money'? Oh yes, he did. That's what they call your paycheck these days over at the White House; and you keeping what you earned is now considered foolish spending."
Did he really say 'our money'? Oh yes, he did. That's what they call your paycheck these days over at the White House; and you keeping what you earned is now considered foolish spending."
Campaign For Liberty — Tax The Rich
Campaign For Liberty — Tax The Rich: "We will not earn more when [the rich] keep less. Taxing them is a lose/lose proposition, which unfortunately has become this administration's signature move.
Wealth is neither moral nor immoral; it is simply the difference between what is produced and what is consumed over a lifetime. People who spend more than they earn become poorer, people who earn more than they spend become richer. With the obvious exceptions of crooks and shnooks, rich people only get that way by providing us with the things we want. Only a fool - or a jealous socialist - would want to punish someone for that."
Wealth is neither moral nor immoral; it is simply the difference between what is produced and what is consumed over a lifetime. People who spend more than they earn become poorer, people who earn more than they spend become richer. With the obvious exceptions of crooks and shnooks, rich people only get that way by providing us with the things we want. Only a fool - or a jealous socialist - would want to punish someone for that."
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