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Originally Posted by MMM
Sangetsu, I appreciate your knowledge and experience.
You can say "What happened after the Reagan tax cuts? Revenue increased. The only reason that the deficit also increased was Reagan's massive military spending. " but you are mixing apples and oranges.
Trickle-down economics worked incredibly well...for people like your uncle. But for people that weren't making 300k a year the benefits weren't as obvious.
And were are not only in a similar state, but a worse state right now, in more expensive war(s) and bankruptcies and foreclosures at record highs.
More of the same is not the answer.
I do not blame the entire ARM situation on the Bush administration, but their hands are not entirely clean either.
If our economy hinges on hurricanes, then we need to do something different. McCain wants to drill more off the coast of Florida, Louisiana and Texas. On the eve of another oil price hike thanks to Ike, does that make sense?
I already answered your tax question, and don't feel the need to repeat myself. I understand and applaud your uncle. I wish he was more representative of the rich in America.
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My uncle was not the only one to benefit. His employees benefited as well, didn't they? And so did is suppliers. Were my uncle not in business, there would be 20 less people at work, and millions of dollars in equipment and material not consumed.
My uncle would appreciate the applause, but he would tell you that he is only one of hundreds of thousands who work hard and employ people. Those who are rich have a much more profound knowledge of how the economy works than those who teach the subject at universities.
You might think that $300k per year is a lot of money, but it's relative. His money is not hoarded away in an overseas account. It is spent on things like the college educations of his children, maintaining his house, his and his wife's cars, clothes, food, and other consumable items. His income is spread out to a variety of other businesses who use it to pay their own bills.
He could pay more in taxes, but to what benefit? What exactly would the government do with it? It wouldn't be bad if there were responsible people in government who knew how to handle the taxpayer's money and use it wisely. The people who go into state local governments are not the best or the brightest, and they often are not the most honest. No investment in the world will give you a poorer return than the government will.
I don't believe Obama or McCain are capable of making any real changes. Honestly, Obama probably has less chance than McCain, as he is much more beholden to his party. The more quickly one wants to advance in government, the more promises he has to make. Obama has risen very fast. Pardon me if I sound cynical, but when it comes to politics, there are few other emotions which are more appropriate.
As for oil and offshore drilling, I used to live in Florida. Florida law prohibits US oil companies from drilling within 100 miles of the coast. The problem is, international waters begin only 3 miles away from shore. The law is only binding to American companies, which means that foreign oil companies can legally drill as close as 3 miles to our shore. Cuba and Venezuela have already been exploring areas of the gulf within the 100 mile boundary. China has also been exploring these waters. These foreign companies are not held to the same standards of environmental safety as American companies, and as a result, the odds of an oil spill or other catastrophe may only be increased because the only companies that can drill near our coasts are unregulated foreign companies.
The economy does not hinge on hurricanes. It was not a disruption in oil supplies which caused the spike in oil prices. It was speculation in oil which was to blame. Speculation must be reigned in. Speculation in oil has caused the energy crisis, speculation in real estate caused the mortgage crisis. Speculation was also to blame for the previous collapses of the housing and stock markets.
Leave the taxpayers alone and shake up Wall Street. Make them feel the consequences of their actions in the short term as opposed to the present system where their mistakes add up over a period of time to the point where we all have to feel the consequences.