Loose Stool Economics: Debunking The "Bar Stool" Tax Analogy

http://androidpolitician.blogspot.com/

Video debunking Lee Doren's (HowTheWorldWorks or How The World Work) dumb tax analogy of a bar in his "Bar stool economics"

Ironically his analogy was much more fair than the Republican's plan.

Original video - http://is.gd/2jj1zC

Mother Jones tax chart - http://is.gd/s2hSkx

The calculations were done based on the money saved through taxes as a percent of that income.

For instance, $100,000 in tax savings for someone making $1 Million is a 10% savings.

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[luvcheney1]

@AndroidPolitician I previously stated the aid was MONETARY. You avoid discussion by playing games. No one would argue that Bretton Woods was a success, either. The reality in the LONG run is this: nations cant have fixed exchange rates unless they all run the same monetary policy. The EU is having this problem today, it was predictable. Greece is an issue, because they and Germany are night and day on monetary policy. Greece must be austere, or Germany must get irresponsible.

[AndroidPolitician]

@luvcheney1

The only thing the plan did send was money. Capital isn't just money it's capital.

It's worth noting the St. Louis Fed is probably one of the most right-wing of them and the "interpreation" it presents shows.

Yes ideologically it creates "distortions" because it "distorts" the market to enable for better grow and prosperity.

No one in the Fed would argue post-Bretton Woods growth rates or employment was greater, it's just fanatic ideology.

[luvcheney1]

@AndroidPolitician Tell me what kind of resources were sent, that didnt cost money? According to St Lois Federal Reserve, "During the Bretton-Woods era of fixed-exchange rates, many countries limited asset transactions to cope with balance-

of-payments difficulties. But, recognition of the costs and distortions created by these restrictions led to their gradual removal in developed countries over the last 30 years." Cap controls enable for a TIME poor monetary policy.

[AndroidPolitician]

@luvcheney1

No it didn't and capital is resources not just money.

Not for capital it didn't, unless you consider heavy punitive fines for outsourcing "removing trade barriers".

Holy shit are you really that goddamn stupid?

I was talking about Europe immediately after the war in which wages and taxes were almost non-existent. As it happened Cap controls allowed Europe to develop and get better wages today.

[luvcheney1]

@AndroidPolitician "Aid", not capital? The "aid" was monetary, Part of the Marshall plan was to REMOVE trade barriers. GATT? General Agreement on Tariffs & Trade? 1947? As far as "slave labor" is concerned, thats BS. In 2010, US Corps invested $2 Bill in China, $30 Bill in Europe. During mid 2000`s, Foreign Corps invested $87 bill a yr in the US, while US Corps invested only $45 bill abroad. "Slave labor"? Capital flowing far more to wealthier nations.

[AndroidPolitician]

@luvcheney1

We sent aid abroad, not capital, and that's my point, it would of been enormously profitable to use near slave labor from devastated post-war countries via outsourcing but we didn't, we restricted it to the US.

Yeah I think you're missing something here. Compare Mexico to a Latin American country that didn't use capital controls, like, oh say, Haiti. It's not even a question of which lead to better results.

[luvcheney1]

@AndroidPolitician Europe, and Japan`s infrastructures and economies were destroyed. Ours werent. We sent huge amounts of capital abroad, to help rebuilding. We just switched war economy to demand again. Japan especially came in at the low end of manufacturing, exactly like China is today, making the cheap crap. I recall as a boy my cheap Jap transistor radio. Mexico had severe cap controls, trade restrictions for many decades. Peso destroyed, poverty.

[AndroidPolitician]

@luvcheney1

Taxes in OECD nations after World War II were lower if not non-existent (in the case of Germany) yet capital was trapped in the US.

Seriously it's a losing argument, you're not going to change the reality that corporations were forced to stay and would of left if they could.

If I recall Mexico economically did pretty well with ISI. It was only after it deregulated that growth started falling.

[luvcheney1]

@AndroidPolitician Post 2). Lazaro Cardenas was a Mexican President in the 1930`s, who after US & other Oil interests developed the oil industry in Mexico, expropriated it. A building of industry, and trapping it. Of course, everyone thereafter knew what a piece of shit, lying, undependable piece of crap Mexico was, and it took 30 yrs until anyone ever had the balls to invest a nickel in Mexico again.

[luvcheney1]

@AndroidPolitician Corp tax rates have been falling in OECD nations for quite a while, and environmental costs, lawsuit costs, permitting, regulations, all lower US profits. Labor is only one part, and when US Corps have better machines, productivity is what matters, not wage rates. Labor is not ALWAYS prohibitive, but this group of high costs IS. The solution is to follow policies that increase profit, here, in the US. War on Corps is a losing proposition. They give up & go