Economy 53,076 Posted October 27, 2015 Share Posted October 27, 2015 http://www.bloomberg.com/news/articles/2015-10-26/how-a-fed-rate-hike-could-actually-stimulate-the-u-s-economy It may seem odd to suggest so. Low interest rates are suppostu stimulate spending and borrowing while higher interest rates slow economic growth and put a lid on inflation. But ironically low interest rates may actually be slowing down US economy now 7 years after the financial crisis a considerable deleveraging of consumer debt took place and consumer debt is now below 110% of annual disposable income so most Americans CAN withstand modest increases in interest payments now without their finances being destryoed At the same time low interest rates are hurting the housing market because rates are soooo low that banks think the margin for profit isnt enough to justify taking risk in lending so only people with really good credit scores can buy houses and only businesses in great standing can get access to credit for expansion while everyone else suffers Low rates for so long are also causing u healthy distorsions and mis-allocated assets as safe fixed income bonds are so useless right now that people seek out risky junk bonds from bad debt or dangerous highly speculative equities to try and gain returns they cant find in traditional investments. Link to post Share on other sites More sharing options...
ARTPOPdidntflop 3,987 Posted October 27, 2015 Share Posted October 27, 2015 tax the rich Gaga x Nicki x Azealia x Ariana x Kesha x Bey Link to post Share on other sites More sharing options...
Economy 53,076 Posted October 27, 2015 Author Share Posted October 27, 2015 tax the rich everyone seems to think thats the answer to every economic problem. Its not as simple as that Link to post Share on other sites More sharing options...
ARTPOPdidntflop 3,987 Posted October 27, 2015 Share Posted October 27, 2015 everyone seems to think thats the answer to every economic problem. Its not as simple as that But its a pretty good resolution to money problems Gaga x Nicki x Azealia x Ariana x Kesha x Bey Link to post Share on other sites More sharing options...
Economy 53,076 Posted October 27, 2015 Author Share Posted October 27, 2015 But its a pretty good resolution to money problems it does provide a short term boost to revenue but it also makes your country less competitive with others, discourages entrepreneurship and in some cases makes you loose major Corporations (such as Burger King Moving Headquarters to Canada for lower tax rate. And now they lay taxes to Canada not the US). Taxing the rich a little more than everyone else is fine and even beneficial but you cant tax them A LOT more than everyone else without backfiring. Also im talking about the economy not Government revenue Link to post Share on other sites More sharing options...
Better Day 5,766 Posted October 27, 2015 Share Posted October 27, 2015 Redistribute wealth. The 1% doesn't deserve most of the world's wealth. Together You And I! Link to post Share on other sites More sharing options...
Economy 53,076 Posted October 27, 2015 Author Share Posted October 27, 2015 Redistribute wealth. The 1% doesn't deserve most of the world's wealth. i agree with that. I just dont believe simply yanking it with taxes is the way to do it trying to fix the wealth inequality issue with taxation is not a solution at the fubdamental level. Its just easier to understand because its more direct u want a healthy middle class then create a competitive economy with good quality jobs and oppurtunities abd create competition in labor market also simply taxing the rich and trying to redistribute the wealth with social programs is like having an illness with a cure but instead of the cure u just take tylenol to numb the symptoms but u never actually fix the issue i see tax hikes on wealthy (especialy if their rates are already higher than everyone elses) kind of a lazy patch work instead of getting innovative to make an economy that works also on the whole interest rate thing, i think it is starting to become harmful Link to post Share on other sites More sharing options...
Better Day 5,766 Posted October 28, 2015 Share Posted October 28, 2015 i agree with that. I just dont believe simply yanking it with taxes is the way to do it trying to fix the wealth inequality issue with taxation is not a solution at the fubdamental level. Its just easier to understand because its more direct u want a healthy middle class then create a competitive economy with good quality jobs and oppurtunities abd create competition in labor market also simply taxing the rich and trying to redistribute the wealth with social programs is like having an illness with a cure but instead of the cure u just take tylenol to numb the symptoms but u never actually fix the issue i see tax hikes on wealthy (especialy if their rates are already higher than everyone elses) kind of a lazy patch work instead of getting innovative to make an economy that works also on the whole interest rate thing, i think it is starting to become harmfulWhat other possibilities are they to redistribute wealth. Since capitalism came about they have been unnecessarly greed. It isn't needed. Everyone deserves the same chance in life. But capitalism has ruined many countries in Africa, Asia. The West has drained many of these countries of their resources which has caused many wars and terroists. I blame capitalism for all of this. Capitalism has happened since the 1700s and all it has caused is unnecessary greed. That is why I am left-wing mainly because capitalism has caused the human race to animals and they are getting even worse. Together You And I! Link to post Share on other sites More sharing options...
politicqxs 358 Posted October 28, 2015 Share Posted October 28, 2015 Foreign capital and assets will flow back to the US. Emerging countries will suffer, which in turn will drag the US back into the 'swamp'.. Ask yellen.. giving up sodomy and moving to 🇦🇪 converting to ☪ and marrying four girls Link to post Share on other sites More sharing options...
politicqxs 358 Posted October 28, 2015 Share Posted October 28, 2015 On a side note, China just cut its interest rate by 0.25%.. giving up sodomy and moving to 🇦🇪 converting to ☪ and marrying four girls Link to post Share on other sites More sharing options...
Economy 53,076 Posted October 28, 2015 Author Share Posted October 28, 2015 What other possibilities are they to redistribute wealth. Since capitalism came about they have been unnecessarly greed. It isn't needed. Everyone deserves the same chance in life. But capitalism has ruined many countries in Africa, Asia. The West has drained many of these countries of their resources which has caused many wars and terroists. I blame capitalism for all of this. Capitalism has happened since the 1700s and all it has caused is unnecessary greed. That is why I am left-wing mainly because capitalism has caused the human race to animals and they are getting even worse. weve had a lot more innovation since capitalism tho. The investment and drive that comes from it is way stronger than anythig Government would be capable of. Governments are inneficient at using resources. Any company or task done by Government always requires more labor and money to get the same done because they dont have shareholders to answer to and they always end up wasting a lot of resources I will give you one example. Canada post charges way more for shipping and other mailing than Private Companies yet it still runs a loss every year and requires tax payers money to fill in the shortage Governments should use tax money for education and infrastructure mostly. Some social programs for disabled people or people in tough sotuations i can agree with. Also im not against free healthcare because its a unique industry in which laws of supply and demand dont work the traditional way so i prefer it in the hand of the Government. But over-all i prefer smaller Government U also have to remember that we live in a global economy. If we were 1 Nation or 1 Government you could probably get away with taxing a bit more. But its so easy in the modern era to move operations overseas far away or to have headquarters in 1 Country while movig businesses elsewhere. The result? You tax rich a lot and it backfires. They take their money elsewhere. My Country Canada has won over Countless US Corporations including iconic Burger King. Our 15% Corporate tax Rate vs 35% in US may have something to do with it We live in a world where competing for businesses and investment requires you to be competitive in giving businesses good enironment and left winged people dont sem to understand that. If you wanna tax Corporations and rich people more without this issue then you need every Country to agree on a standard so that Rich have no where to hide. But good luck ever getting that to happen Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted October 28, 2015 Share Posted October 28, 2015 Tax the Rich ??? Balance the system so they can't hide income....which is why rich pay less % than wage earners. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 53,076 Posted October 28, 2015 Author Share Posted October 28, 2015 Tax the Rich ??? Balance the system so they can't hide income....which is why rich pay less % than wage earners.this would work better some system to prevent loopholes and offshoring. But as i said, for that to work you need international consensus. If u crack down on rich by yourself your the one who looses out in this globalized economy also again this is a revenue thing. Im talking about the economy itself. A weak economy is worse for middle class than rich avoiding taxes because incomes drop sharply income inequality is worse now than before Bushes tax breaks for businesses and rich expired. As i said. Taxing the rich more wont fix the income problem especially in a global economy as offshoring makes problem even worse Link to post Share on other sites More sharing options...
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