Does the private sector include deregulated banks and wall street? Consumers buying habits, like getting into a mortgage you can't pay back? Consumer buying habits like credit card debt with 21% rates that can't be paid back. I do not think more taxes is the answer but I do think investing in our own country is. How much has been spent "rebuilding" that **** hole iraq? Imagine what all of those dollars could have done here in the USA. The private sector was "doing what it needs to do" and that is part of the reason we have problems now. The private sector was making bad loans to people they knew could not afford them and then bundled them with more bad loans and sold them. The private sector was using magical accounting to hide the truth while claiming they were raking in money. The regulations passed after the depression were supposed to prevent that but hey, the government shouldn't regulate the private sector and..........here we are. There can be too much regulation and that stifles the market, no doubt about that, but you need some regulation to keep the liars and thieves in check.
There are already tons of regulations that keep business in check. I'm sorry but these "tax cuts" you are talking about are not real. If you are talking about the "Tax" cut for new hires, that stand for only one year. What happeneds to the credit, because that's what it really is, for the second year of that employee's tenure with that company? There will always be crooks, why is it you are hanging your hat on the few bad apples and not looking at all the great corporations that have done nothing but practice good buisness. Do you not think other countries have bad companies? To your point about the Great Depression. There are many studies that prove that the GD would have been shorter if the Fed would have sat the whole thing out. http://www.parapundit.com/archives/005635.html I think that the common man is the way we get out of this situation. Germ, I want to know how do we pay back all of this debt that we are in? When is too much spending too much? What was wrong with the tax cuts that Regan worked on? The fed cannot get us out of this mess. If they get out of the way and let hard working people do just that, work, then there is no stopping a REAL recovery!
I thank you kindly for this comment! I know it's bad but I'm still very new to Bow Hunting, so I really don't know what I'm really talking about. The Statement in BOLD is just a little off. The Private secotor was FORCED by the Fed to make these loans. http://www.youtube.com/watch?v=ivmL-lXNy64
Does the private sector include deregulated banks and wall street? Consumers buying habits, like getting into a mortgage you can't pay back? Consumer buying habits like credit card debt with 21% rates that can't be paid back. Consumers signed the loans, there has to be some form of personal responsibility. If you can not pay back 21% interest don't borrow. If you can not pay the mortgage don't sign the line. I do not think more taxes is the answer but I do think investing in our own country is. How much has been spent "rebuilding" that **** hole iraq? Imagine what all of those dollars could have done here in the USA. I agree, this could have been over with and we could have stopped spending the money long ago The private sector was "doing what it needs to do" and that is part of the reason we have problems now. The private sector was making bad loans to people they knew could not afford them and then bundled them with more bad loans and sold them. The private sector was using magical accounting to hide the truth while claiming they were raking in money. The regulations passed after the depression were supposed to prevent that but hey, the government shouldn't regulate the private sector and..........here we are. There can be too much regulation and that stifles the market, no doubt about that, but you need some regulation to keep the liars and thieves in check. After the failure of some of these banks the gov't stepped in and loaned them money to stay a float. That bothers me as much as spending a trillion dollars on health care. The "invisible hand" of the market would have led these banks or auto makers to fail and not be in business. Not unlike the idea of natural selection. Only businesses with good solid business practices would survive an economic downturn. Out of recession comes stronger businesses, unless we have government intervention.
If only it were as simple as the private sector being forced to make loans. How can you force a bank to make bad loans? You may be able to say," If you want to have government backed loans then some of them, a %, have to go to minoritys" but you can't make a bank make loans. This is fairly long but I would highly recommend that evryone read it. Very informative. http://business.cch.com/bankingfinance/focus/news/Subprime_WP_rev.pdf
I tend to agree with this. If the gov had to loan them money they also should have exacted much more "payback" too. Just giving them the money and looking the other way was only encouraging more of the poor practices.
You know what, it is sad to see a business fail, but the other option of giving the money to failing businesses is even worse. How many years is it going to take to get our (taxpayer) money back. How much did we (taxpayers) pay in interest (to the bond purchasers) to allow the government to help a failing business? Sometimes the cost outweigh the rewards. I just feel like this is one of those times.
I thought it was Carter who cause the problem? Now it was Clinton, I am confused From a small business owner the tax credit is real, the new home credit is real. I am all for tax cuts, as soon as they do so and cut spending Check you history and see what happen the first years of the Depression. Nobody did a thing and it got way worse in a hurry.
The thing that bothers me most is a pretty simple concept.....(If you love what this country was founded on)..... When you get more people riding in the wagon.....than there are pulling......you're headed for disaster. When the people who are allowed to ride.....have the voting power to assure their "ride".....you're headed for disaster. Obama is promoting more "passengers" and making it hard on those pulling......by design. He scares the hell out of me.
There is no saying that it would not have gotten better without the intervention. But what history does clearly show is that tax cuts do work, in historic and recent events. The tax credits? what gets lost in this is that those tax credits are not a reduction of taxes, they are a result of higher taxes and government picking and choosing which individuals will benefit. Tax cuts work across the board for every individual and business. Me too. In order to accomplish this he argues for taxing the businesses (cap & trade) and the rich (estate taxes). What prevents a business from taking a portion of its operation to outside the US? Nothing, why stay here if you can move operations to another country and pay less in taxes? Then where does the tax revenue come from? Back on the people. So then who is pulling the wagon? I don't understand it either.
I think your fooling yourself, if Bush would have not stepped in we would be in serious trouble right now. Fact Bernanke stepped in should say a lot.
Carter started it. Regan STOPPED it. Clinton brought it back and worse then it was when it was started. You aren't understanding a Credit vs. a cut. Credits are NOT law. Cuts are law. Wait first years of the depression? How long do you think it takes for the wrongs to be corected? In some cases to do this right, it could take YEARS. The only person being fooled is you my friend. Spending is going to make it worse. I have yet to see how this spending is going to be paid for.
Why do you need to "pay for" tax CUTS? If you're talking about the decrease in revenues........I understand (though we have a fundamental difference of opinion on the benefits of tax cuts). At some point, Gary.....the people who have the $$ will find it UN-fulfilling (financially) to continue producing. Not producing = lack of revenue. Lack of revenue = lack of taxation. Make it easier/more palatable for an entrepreneur to hire someone (and keep them gainfully employed), and you've CREATED more taxable revenue. People with jobs and money earn wages; buy things. Make it tougher on those creating jobs/revenue.....and you'll scare them into hibernation. We're in a state of hibernation, currently. Down-sizing = hibernation. Unstable economy = hibernation. Why anyone can't see this is beyond me. When a person with nothing to lose.....and everything to gain.....is afforded the right to vote himself a handout....and that mentality is promoted by those in charge..... ..........I have to assume it's being done, intentionally. Obama scares the hell out of me, because he damn well knows what he's doing.
Germ, Believe it or not, Tax breaks in the past have actually INCREASED tax revenue in the long run. Hard to imagine right? But the fact is... a higher percentage of a lesser amount typically equals less revenue than a lesser percentage of a higher amount. In other words, when tax breaks occur people have more money in their pocket so then spend more which means there is a higher quantity to tax. Follow my logic?
Edit: Do you think this type of policy can be implemented in the future? (by a different administration of course) Correct me if I am wrong but wasn't this Regan's position? It must of been hard for anyone to imagine this after Carter. But it happened. It could happen again.
Of course I believe it can happen. I'm furhter right than any leader SINCE Reagan. Reagan's policies are irrefutable. What's refutable is a successful tax/spend sustained economy. And, if you're the one being "spent" on..........why do you want to change it? Re-distribution of wealth has a name. They (and you know who "they" are) just don't like the name.
I heard a scary statistic on the radio the other day. We (America) are approaching a ratio of 50% pullers and 50% "riders" If anyone thinks that is sustainable, they need to have their head checked. Enough said.
Tax Breaks Paid For??? Are you kidding me? How the hell are we going to pay for the TARP, Obama Care, and increased funding for social programs? Tax breaks will increase the tax base for the government, Not reduce it. There is a point on the curve at which tax revenue is at its highest and that point has a tax level associated with it. The government would be best served by staying near or at this point and working within that budget.
