Increase Taxes and Cut Spending to Help the Economy

[pirucreek]

@MrAk47nut Actually after observing Jerry Brown. I think I agree with you now. I remember when sales taxes were 6% in California and we had less of budget crisis. Now that it is 10% they say we need it. We need like a heart attack, we should cut taxes and spending. The goal should not be to maximize taxes, but to keep government as small as possible.

[aaasssfffdddiii]

Your tax idea is silly. High taxes form a disincentive to work...

[EasyEs]

I can see the logic behind this. However i don't know how it will work today. The USA had a monopoly on industrial capacity after ww2. Most would be competitors were rubble or top down statist economic basket cases Once Japan Germany Sweeden and S Korea got running the jig ws up. I do agree that the rich can pay more taxes, low intrest rates just artificialy raises the net worth of people in finance etc. If intrest rates were not pushed so low I would probably change my stance on this.

[pirucreek]

@EasyEs I am not entirely convinced the low interest rates are entirely set by Bernanke. There is little demand for capital and even at 2% most could not pay it back. Also at 2% my as well buy stocks or bonds where you know you will be paid back. Low wages, high unemployment, and low interest usually occur together. I have heard the true unemployment rate is 22%.

[EasyEs]

@pirucreek I would say you are right unemployment in the USA is as high as you think. The USA is stuck because what appears to be a two decade long drift towards a political economy of Europe. New small and mid sized firms capital cost when it comes to expanding is to so high today when you factor in dealing with the tax and regulatory enviroment, the possible returns are not worth the risk of getting caught in that legal limbo.

Of the jobs available few are qualified to take it seems.

[EasyEs]

@pirucreek So in short, rebuilding savings etc, will be very hard because the cost of turning many unqualified workers into productive workers, due to the hoops that employers need to jump through today, if they want to keep let alone fire a worker.

Combined with the high cost of navigating the regulatory maze, too much capital is wasted to bother taking the risk atm.

[pirucreek]

@EasyEs My latest video I think ending capital gains taxes will help rebuild savings. Today it is almost impossible to save. The government will take via inflation tax and give it to banks.