Liberal Sound Bites Obscure a Danger to Risk-Takers
- Print print this page
- Discuss 57 comments, Blog about
Advertisement
I recorded the recent State of the Union address to have a full and accurate transcript of President Obama's policy proposals. Actual words count.
I believe that his populist pronouncements are simply not a recipe for long-term success. He claims that the rich act solely for self-interest and that they care nothing for "middle America." The system is not "fair," says the president. And in the name of fairness, he is putting risk takers on the defensive.
The United States of America has traditionally been a nation of individual freedom and risk activities. That sets this country apart from most other nations and served as the foundation of a great, growth-oriented economic system that accumulated vast capital wealth. Successful risk-taking has yielded much higher returns than safe investments. Today, risk-taking is under assault by Obama's tax proposals.
Politics has become a game of sound bites directed to mass audiences via radio, television and the Internet. The users of these sound bites have blurred the lines between good behavior and bad, between production and consumption, between truth and fiction. And they do so without shame.
One party goal seems to be supporting centralized federal government power and control of what had been private decision-making. The other party goal is for dismantling the current structure in favor of returning local decisions to local governments. That second task is easier said than done, because of a century of the transfer of power to Washington and because certain common tasks are best performed by one decision-making body.
The current president finds a stigma in accumulated wealth and feels justified in inserting government dictates on the owners and producers of the wealth. The public is somewhat sympathetic to the president's position, as evidenced by low congressional approval ratings and terms such as "crook" and "greedy" that populate comments about corporate leaders and many in government.
Unfortunately one of the most successful risk-takers has given his support to the assault on capital investment. He is Warren Buffett, a legendary investor. He is a risk investor and a shrewd manager. Buffett is a rich man.
Now one of the most successful investors in modern times has turned his back on a fundamental tenant of capitalism and pronounced the "Buffett Rule." The proposal states that any taxpayer who is reporting income more than $1 million per year from any source should pay a tax of 30 percent on the total - no matter what the source.
The concept is disgraceful to capitalism and to investors from all walks of life. Sound bite publicity lumps capital gain income and ordinary income in one tax basket for upper-income people.
Buffett has said that he pays a lower tax rate than his secretary, as though it was sinful. Comparing ordinary income to capital gain income is comparing apples to oranges and is pure spin. Shame on you, Warren. You are biting the hand that feeds you.
Mr. Obama demands that millionaires and billionaires pay their "fair share." Obama then determines the measure of "fair share." That, too, will not work. Any unchanging politically established measurement will not reflect current times after inflation and is as flawed as the politically established retirement age that has made the Social Security model obsolete.
Ordinary income is income received as payment for employee labor or, in some cases, as payment for services. Capital investment, on the other hand, is made with funds that are generally made available after income taxes are paid. Capital investments are "risk" investments and serve as a storehouse for savings. Investment vehicles permit appreciation without taxation until liquidation.
Most Americans own risk investments either directly or indirectly. The middle-class family home is a risk investment because value depends on the worth of similar properties in the area. The nationwide collapse of housing prices has impacted a broad range of homeowners. Few can escape the broad-based loss of value.
No amount of government intervention in the real estate market will impact price levels, much less create a marketplace for price appreciation. Absorbing the inventory can only happen over time, helped by increasing population numbers and growth of ordinary income. A growing economy will hasten the process.
In the meantime, political leadership claims it will "do something" about the worldwide economic weakness, and then it touts the "Buffett Rule."
Why would any owner of capital pay for a growth strategy when the rewards have been cut by politicians? The sound bite is popular in some quarters, but it is a recipe for stagnation.
Walter B. Bull Jr. lives in Pinehurst.
More like this story
Advertisement














Comments
Courseaire 1 year, 3 months ago
Well said Walter Bull!! Unfortunately, most people cannot get over their jealousy of the successful.
JimHeim 1 year, 3 months ago
There is not a single state in the Union where the top 1% pay as much of their income in taxes as the bottom 20%. In North Carolina the poor pay more than twice as much of their income in taxes as those at the top.
Given all of the advantages the rest of us paid for so you "risk takers" can get rich, it's hard to understand why you're so unwilling to pay your share.
And "risk taker" is a bit of a stretch, since most entrepreneurs risk other people's money rahther than their own.
OldSpook 1 year, 3 months ago
Jim, instead of using percentages why don't we use dollars instead? Now suppose you make 1 million dollars and pay 3% in taxes. That comes to $30,000 you're paying. Now suppose I make $36,000 and pay 15% in taxes. That comes to $5,400 I'm paying. Curious, you're paying less percentage but more dollars while I pay a higher percentage but pay considerably less than of what you pay. I may not like that you have more money than I do, but who am I (or the government) to say I am "entitled" to more of your money. Sorry comrade, this is not the Soviet Union and in this country you are entitled to your earnings, I however am not entitled to your money.
Courseaire 1 year, 3 months ago
The problem is how you define "Fair Share". The left define "Fair Share" as "I'm entitled to what you earn because we are a disadvantaged people." They also think that the 20% equate to the 99%. They are very bad at math - maybe they are disADDvantaged people.
JER 1 year, 3 months ago
Percentage is the only possible way to determine "fair share". Using dollars rather than a percentage doesn't work. Example: If everybody paid $1000.00 in taxes per year, that could be construed as everybody being "equal". But it would not be fair. If everybody paid 10% of their income, that would be the definition of each paying their "fair share". The billionaire and the pauper each feel the pain to the same degree. Yea, I know, I'm a radical, communist trying to undermine this great country.
OldSpook 1 year, 3 months ago
Actually JER, the flat tax, while it would make sense, will never fly as it would put to many IRS employee's and lawyers out of work. So; How dare you use logic and common sense to suggest a such a thing a fair and equitible tax system that anyone could understand. Do you realize how many lawyers, IRS agents and other parasitic leaches you put loose on the streets? For shame!
moonchild7 1 year, 3 months ago
The Eisenhower '50's were some of the most productive ones in America's history. The RICH were taxed at a 90% rate. So you TEAPOTTER LIARS need to stop it and now!!! I'm so beyond sick of this HATRED that you keep spouting constantly about our current President. Where were you guys back in the '50s? I was a little kid living that "good upper middle class" life in the NorthEast, with my two brothers, one sister and my hard working father and stay at home Mom. The Obama Administration is finally doing the "Good Work" that's been too long in coming, in giving rights to EVERYONE who should have them, Gays, Lesbians, Vets, and including the poor who need health care and women who need even more health care services...NOT LESS. There's a profound WAR against WOMENS health going on by you right wing wackos and it's EVIL! So, Mr. Bull, you are quite FULL of IT.
Bentpan 1 year, 3 months ago
"I'm so beyond sick of this HATRED that you keep spouting " Moonchild " TEAPOTTER LIARS , you right wing wackos , Mr. Bull, you are quite FULL of IT." also by Moonchild in the very same post, Ma'am I believe you've just defined HYPOCRIT for us.
teufelhunden 1 year, 3 months ago
Hey MC7-go to CNN and take a look at the Quick Vote question. YES IT HAPPENS ALL THE TIME.
MarkinMiami 1 year, 3 months ago
Moonchild we're sick you liberal nutjobs thinking obama is the 2nd coming of the almighty himself. Why don't you raindance back to your commune and put on another hemp skirt.
MarkinMiami 1 year, 3 months ago
*sick of
OldSpook 1 year, 3 months ago
WOW, that was some serious venting. Should we expect the same kind of peace, love and tolerance from the left if as "right wing wackos" we should submit to their control? Very scary indeed.
justmyopinion 1 year, 3 months ago
Bentpan- Moon lives in misery. Isn't it obvious?
AFCHIEF 1 year, 3 months ago
MOONCHILD 90% tax rate, your flippin crazy. What is the source of this lie
DoubleHeroides 1 year, 3 months ago
I’m not overly religious but I was raised in the Church and one thing that stands out in my mind during this conversation is the example set by the old lady in the synagogue. I don’t remember the exact location of the story in the Bible but I’m sure once I recount what I remember of the story it will come to some of your minds. Please forgive my paraphrasing.
The story goes that Jesus was hanging out in the “lobby” of the synagogue with some other dudes when this rich man walked in to place his offering in the offering box. He put in a good amount of money, nothing grand and certainly nothing he thought twice about and walked away very full of himself for being charitable. All of the commoners and other onlookers wowed at this great man and the fact that he was so benevolent to give more than they ever could to the church.
Shortly thereafter a poor elderly woman came forward and dropped what many considered to be a pittance in the offering box. At this many onlookers chastised the old woman for having given so little to the church. At that Jesus stepped forward and remonstrated them saying that the old woman had indeed given more than the rich man because the old woman had given all that she had to her name while the rich man did not care about the money he gave away.
The point I’m trying to make and I’m sure everyone hears this around budget time for the church (I know I do) is that it isn’t how much you give but that you give according to what you are able.
I know that there is a difference between the church and government but the lesson stands true that it isn’t how much you give, it is that you give according to what you are able and I think that sums up what some people (I didn’t say me, just good, bad, or indifferent) have pushed for with a percentage of income being taxed rather than a flat tax.
And this is just an observation, and I hate to be the one to make it but I have noticed, especially in the last five years or so that it seems that a fervor has grown in some Christian organizations and some political figures to put Christ back in schools, back in government and back in our daily lives (again, good, bad or indifferent), it just seems like they don’t want Christ in their pockets.
jimt 1 year, 3 months ago
There seem to be very few "Christians" among the fervent and fundamentalist Christians. Also, ever notice how most of their biblical quotes, especially those about punishing sinners, which is everyone who disagrees with their views on how the Country should be run, come out of the Old Testament? I've never understood this. But then again, I'm not a Christian.
Courseaire 1 year, 3 months ago
@AFCHIEF - The MC is correct on the 90% marginal tax rate in the 50s. It stayed that way till the 60s when it was lowered to 70%, then to 50% in '82 (thank you Ron), the 38% in '87, 28% in '88 and fluctuated between 31 & 38% to the 35% currently.
Source: http://www.taxfoundation.org/taxdata/show/151.html
dustyrhoades 1 year, 3 months ago
It's people like MarkinMiami, the three headed zombie troll jmo/jpb/ns, MikeNC, wdd101st, and AFChief that kept me from becoming a conservative.
Like many young folks, I was liberal in my teens and twenties, but by around 1992, I was older, had seen a lot more, and frankly, I was on the fence.
Then, during the election of that year, I took a look at both sides, and I saw that the most mean-spirited, thuggish, condescending, childish, proudly ignorant, vicious, narrow-minded, hypocritical, bigoted, xenophobic, racist, and violent a-holes were all on the right, and I knew I wanted nothing to do with them or anything they claimed they believed in.
You can thank Lee Atwater, Pat Buchanan and Rush Limbaugh for making me the liberal I am today, and the aforementioned cowardly anonymous right wing jackass posters here for keeping me there (especially since I'm 100% sure that the most 'persuasive' response these brain dead anonymice will be able to come up with is some variation of 'no, YOU are!').
As for Mr. Bull: it's hilarious that he decries "sound bites directed to mass audiences via radio, television and the Internet," while his entire Op-Ed is nothing but that. One buzzword after another.
dustyrhoades 1 year, 3 months ago
@AFCHIEF - The MC is correct on the 90% marginal tax rate in the 50s.
Yup. AfChief, you owe MC an apology for your flippin crazy. What is the source of this lie. Not that you'll have the class to give it.
AFCHIEF 1 year, 3 months ago
Dusty, I might have apologized to MC but not now since you already said I didn't have the class to do it.
MC you were right on this fact.
However even if we raised the taxes back to the 90% for the millionaires like you want the problem of budget deficits would not be fixed. THE US GOVT has a spending problem, not a tax revenue problem. Of course Obama if he would have followed HIS OWN DEBT commission would have started in the right track. BUT OBAMA FAILED TO FOLLOW HIS OWN DEBT REDUCTION COMMISSION because then we would not get reelected.
Dusty, get back to what you know best and that is handling traffic tickets.
CC85 1 year, 3 months ago
Total agree Dusty. Although some of my political views fit quite nicely within the conservative genre, I can't stomach actually going there because there's always a dark side with these folks.
skylinefirepest 1 year, 3 months ago
Sounds like Moonie has been sippin' the spirits of the sixties again! I took MY money and started a business. I employed several people with MY money and ran my business for about thirty some odd years. Now Moonie would say that the government should take at the point of a gun, MY money because I had more of it than somebody else???? Please, someone prove to me that she's not a twinkie!!! And Moonie, Obama is a proven liar and has done literally nothing except put this country at great risk. I believe the figure was about thirteen million that would NOT be covered under Obamacare! I believe the cost of Obamacare to be exorbitant and ridiculous. Now I guess that the vets that Obama so obviously cares about ( so much that in the recent budget problems, he threatened to withhold their paychecks! ) are all supposed to be trained as firemen so they can get jobs......where, Mr. President???? I was told that Fayetteville FD recently had about twenty five hundred applicants for about nine openings. And as much as I love the military if you were in charge of hiring, would you hire a vet with certification and no fire experience??? Or would you hire a certified volunteer with ten years experience looking for the same job??
dustyrhoades 1 year, 3 months ago
Dusty, get back to what you know best and that is handling traffic tickets.
Thanks for the recommendation.
GJohn 1 year, 3 months ago
I am not at all jealous of people being wealthy. I do resent the wealthy using their money and influence to manipulate the political system and the economy for their own good, thus hurting the middle class. When the wealthy use their money so politicians will pass laws so they pay less in taxes and we in the middle class pay more, I consider that wrong. And, Old Spook,why can't you see that taking 5,600 from a $36,000 income hurts a poor person far more than anything a wealthy person does. It can mean the difference in eating and not eating. But wealthy people won't see this. They're too far removed from reality and blame poverty on people as if it's their own fault.
moonchild7 1 year, 3 months ago
jimt, those so-called "Evangelical Christians" and many more other 'Christian-type" religions had to stop "Identifying" with anything "JESUS" when PEACENIKS, LOVECHILDREN, FLOWERPOWER, LONG HAIR, SANDAL WEARING, EQUAL RIGHTS REFORMERS, showed up in the 50's&60's. They were shaken to their cores not knowing what to do because JESUS was in reality a HIPPIE! So, they began to resort to those OLD TESTAMENT, Eye for an Eye, Reap what you Sow, Adam&Eve, Noah's Ark stories that they felt could continue to let them stay in the Status Quo instead of having to become Hippies themselves. It's really simple because they are so afraid of change and even more afraid of EQUALITY, FAIRNESS, GIVING, and LOVING it allows them to continue to be racists and sexists. So you'll find very few REAL Christian's or Christian church's out there, anywhere. My "misery" is your jealousy", bentpan. I do get very upset at people who continue to be closed minded and prejuduced. Sorry, that I prefer openness, kindness, and LOVE. I'm NOT a HATEFUL person as I've put my own life on the line too many times to count to help people out of their miserable and unsafe circumstances. How many of you can say that? The RICH need to pay up. They used to pay up and NOT COMPLAIN. Thanks Coursaire and Dusty for your support.
GJohn 1 year, 3 months ago
wdd101st Life is not fair- if it was everybody would work for what they want instead of expecting that it should be given to them.
Really? If life was fair, police, fire, rescue, teachers, and child-care workers - people who really WORK - would be wealthy, while professional athletes and Wall Street tycoons would be on food stamps.
Thatcher 1 year, 3 months ago
MC7 (21 min. ago)-- "JESUS was in reality a HIPPIE!" Uh, no. He was the Savior of the world. Period. I've looked throughout the New Testament, and I've yet to find the terms "sex, drugs and rock & roll," "dude," "flower power," "totally awesome," or "huhuhuhuhu." May I suggest you do some more research or attend Bible Study. Thanks.
Bentpan 1 year, 3 months ago
" My "misery" is your jealousy", bentpan." sorry Moonchild you're mixing posts, My post simply pointed out your ongoing hypocrisy. As for jealousy, I can only say that jealousy is not really in my nature, but should I feel the need, I think I'll reserve that for someone worthy of envy, someone i regard as superior or at least equal.
GJohn 1 year, 3 months ago
Thatcher, maybe you didn't find those currently-used words, but I bet you found references to sex (Jesus told the woman at the well she had had 5 husbands, etc.), wine and drunkeness. While you might not realize it, words like "dude" and "flower power" (from the 60s for crying out loud) refer to socially current ideas - there were socially current ideas in Jesus' time also - like looking for the Messiah. Maybe you need to dig a little deeper at your next Bible study. And, remember, Jesus went against the culture of his time - he actually spoke to women and treated them with respect. He disdained those who held themselves above others; he cared for the poor. Heck, Jesus was a revolutionary!
Thatcher 1 year, 3 months ago
And as far as the 90% rate on earnings in the '50's, yes it was then the law. It generated virtually no revenue for the federal government because (a) it was the top MARGINAL rate at the time, which applied to very few taxpayers, and (b) because of lawful deductions, virtually no one had to pay this top marginal rate. JFK thought it was stupid (he was right), so he lowered the rate. So did Reagan (he was right, too). To me, it seems that liberals intentionally confuse tax RATES (capital gains vs. earned yearly income, FICA, "marginal" rates on income, deferred income, etc). The facts are simple: currently, about 48% of all taxpayers pay NO federal income tax. http://www.npr.org/templates/story/story.php?storyId=125997180. Yes, I chose NPR because liberals love those guys (NPR was off by 1%). Let's end the dumb slogans: Everyone pays FICA; almost half pay NO federal income tax at all. Apologies to MC7 for the "all caps" copyright infringement.
Thatcher 1 year, 3 months ago
GJohn-- And He told the woman what, GJohn? Take a look...it's in John's Gospel, Chapter 4...start about verse 7...then you can reply here. (Hint: the passage is devoid of the phrase, "smokin' a doobie").
GJohn 1 year, 3 months ago
Thatcher, you gotta quit - I almost choked on my tea from laughing at your comment! When Jesus asked her for a "drink", He didn't mean a highball. The whole point, dear, is that Jesus talked to a woman, kindly and with hope, which was highly unusual for that time.
Thatcher 1 year, 3 months ago
Yes He did, GJohn, and He did so many times throughout the Gospels! My entire point on this thread is to deal with MC7's "Jesus was a hippie" nonsense. I'd love to talk with you about your posts. You seem like a really reasonable person!
moonchild7 1 year, 3 months ago
Why is it that when the unemployment rate goes down the Repubs say that it's NOT a good thing. That killing OBL was NOT a good thing? That having the tax rate of 90% during the 1950's didn't help pay for anything? And so of course if we raise taxes now on the rich it won't help anything either. Why do you guys keep doing that? If Bush was President then everything I just mentioned would have been GREAT. Liars and Hypocrites abound and they are the ones who help to make this life so unfair but we always have to strive to make it fair and just, no matter what. Hippies were dissenters, anti-establishment, change agents. So was Jesus, he sorta made the "regulars" a bit nervous and angry. Jesus wanted equality for women and even had the audacity to talk to them and to treat them as equals. Bad, bad thing to do back in those days. The "hippie" movement was about bringing inner and outer awarness to the people. Do unto others. Be your brothers keeper. Help the poor and pity the rich. Didn't Jesus turn water into wine? Nice kinda thing to do when the only thing to "party" with otherwise was H2O. So the Evangelicals have just been besides themselves in trying to "deal with" the realities of Jesus' message vs. the messages found in the Old Testament. Those Old Messages have some relevance but were strongly superceeded and "improved" upon. Too bad those Conservative wacko's can't handle the TRUTH. Guns and Jesus don't mix no matter how many ways you might want to try to spin it. NO WAY!
JER 1 year, 3 months ago
Thatcher: Jesus "was the savior of the world". Wow, can you imagine what the world would be like if he had not saved it? Also, who was in charge of saving it for the millions of years prior to his arrival? Jesus has had a little over 2000 years with no perceivable change from the previous millions of years so I guess these things take time. Too bad were not willing to accept that it takes more than 3 years to save the USA. But, hey, I'm not trying to tell you what you should or should not believe.
MikeNC 1 year, 3 months ago
moonchild7 7 hours, 47 minutes ago .. Guns and Jesus don't mix no matter how many ways you might want to try to spin it. NO WAY!
The people of the world hunted for meat and of course fished and protected themselves. Guns would of been just fine. I will bet Jesus would not have been for abortion however...Like You. Click through some of this if you dare hypocryte. Want love and peace and yet willing to butcher the most innocent by the millions. Hopefully someday an article here in the pilot will tell of Hitler and the 6 million Jews he murdered. We can watch your demonstration of shock and horror and compare him to President Bush in some trwisted way. But FIFTY some MILLION babies slaughtered (Legally) in the most gruesome fashion since 1973 would square up with Jesus??? It squares with you... Mike
http://www.priestsforlife.org/images/index.aspx
dustyrhoades 1 year, 3 months ago
wdd101st 14 hours, 10 minutes ago Gee DR, I had not even posted and you are so obsessed with me that in am [sic] always on your mind.
So a passing mention of someone who hasn't posted in a thread yet is "obsession"? Really?
wdd101st 1 week, 2 days ago Isn't the filing deadline for elections getting realy close? JER or Dusty if he shows up may be able to answer this.
It's so easy to show you up as the dimwit you are. Almost as easy as proving your racism.
moonchild7 1 year, 3 months ago
Without a doubt the "Teachings of Jesus" are a total reverse of what you keep saying and "preaching" MikeNC. The abortion "argument" you continue to bring up as a moral issue is NOT the same as the HEALTH issue. It is absolutely appalling that there are those out there who want women to SUFFER, SUFFER and SUFFER more and more by wanting to make sure they get only a certain type of medical care (or rather a lack of medical care), that's regulated by EXTREMELY Conservative men and women. They take their "teachings" from the "Garden of Eden's Eve" who was so "EVIL". This has NOTHING to do with morals MikeNC, but rather how the back alley abortion vs the abortion performed in a much safer medical facility is compared. Too many women were dying from the former NOT the later. Jesus healed the sick with a deep compassion. Would Jesus approve of abortion? No, he wouldn't but he would approve of a woman being able to have a medical proceedure that would ensure the continued life of the woman rather than her DEATH. You righties are very confused. The abortion rate and teenage pregnancy rates are the lowest they've been in over 40 yrs because of better access to information and birth control. Your argument is NULL and VOID MikeNC. And GUNS?!!!! "Put your sword back in it's place for all who draw the sword will die by the sword." Not much of an advocate for violence or revenge, I think. Of course hunting and fishing is okay but why are semi-automatic weapons needed to kill a little Bambi? Self defense is a different issue and one that anyone who wants to continue living would probably find acceptable. Remember, I had to buy a gun to protect myself from those right wing wackos who threatened me because of my Leftie Opinions I wrote about in other newspaper editorials; and that was back in the 70's.
AFCHIEF 1 year, 3 months ago
MC7 so you are a gun toting Left Wing Terrorist. Who would have thunk that
MikeNC 1 year, 3 months ago
Ahhh yes Moonchild...The old 'it's all about women's health'......But what about infant and fetus health? Of course there are no health issue rights for them. Oh yea, no moral dilemma there. Are you sure that Jesus would approve of your "He would approve of a woman being able to have a medical proceedure that would ensure the continued life of the woman rather than her DEATH. How many women who murder their unborn child do so in order to save their own life? I remember one of Obama's many reasons for being on the side of abortion was that if one of his daughters got herself knocked up, she would not have to be punished for a mistake in judgement or words to that effect. And that same logic is the reasoning for most abortions, not for the health issue of women. Our society just needed to come up with some terminology to make it A-OK with everyone; to include their God...So 'womens health issues' was created by the left...Mike
Barack Obama - "Punished with a baby!" by jcr4runner
moonchild7 1 year, 3 months ago
This is grotesgue but so is MikeNC. So, what comes first? The MOTHER or the EGG? Womens HEALTH issues were brought out in the open after years and years and years of women SUFFERING the horrible effects of backwoods and antiquated ideas of what types of medical services and proceedures women should be ENTITLED to receive. And THANK GOD that the U.S. Supreme Court in Roe v. Wade decided that WOMEN were ENTITLED to the BEST HEALTH care not the WORST health care. Pregnancy is a HEALTH ISSUE not a church issue. With your argument then an awful lot of Evangelicals should be changing their wonderful church halls into maternity wards(for FREE of course) so you guys can better care for all of the pregnant women in the world. Did you know that more and more women are having HOME BIRTHS because they don't have insurance? They are putting themselves and their FETUSES at great risk. How about going after them MikeNC since you're wrong again? I don't tote my gun around AFCHIEF but I do target practice every now and then. I'm a real good shot.
Courseaire 1 year, 3 months ago
Abortion Clinics aka Planned Parenthood are now safe for all as they are now under the protection of Moon "Annie Oakley" Child7.
The_AnonymusProfit 1 year, 3 months ago
There is a war being wages in our country, this is not a war of giant armies on distant battlefields, this is a war taking place right here in our own homes. The war focuses on two differing forms of economic philosophy, supply side verses demand side. Which one is better? According to the far left, supply side economics is an unfair system that perpetuates poverty. The right says demand side economics will bankrupt our country forever. Who is correct?
Look at the merits of one or the other and you will find that one of these systems by itself will never work, while the other, understandably not being perfect can work.
Demand side economics or the Keynesian Economic Model, is based on a theory that by generating a demand for a product, one would be able to revamp a sluggish economy, or increase the productivity of an already booming economy. Examples of demand side economics would be the TARP legislation, our recent QE programs, or farther back the social programs of FDR. Governments run on demand side economics tend to be socialistic to communistic in nature believing that the government of a nation controlling the assets of the nation best understands what is good for the economy of the nation. This is of course a very small and brief description of demand side economics but it gets to the nuts and bolts.
Supply side economics or the Laffer curve theory, is based on a theory that the consumer creates a demand for a product introduced by a supplier. It is a theory that says that by reducing barriers to consumption and production one is able to stimulate an economy. Examples of this would be tax reductions on small businesses, capital gains reductions, income tax reductions. Supply side economics understands that it is ultimatly the consumer who determines the demand for a product. This again is a very small description.
The_AnonymusProfit 1 year, 3 months ago
In our country or anywhere for that matter, it is an understood fact that pure demand side economics has been the down fall of every government that has implemented it. Nationalizing privatized companies is the quickest way to ruin a country. Supply side economics while imperfect works. Having said that it is also understood that by allowing small parts of demand side economics into a main stream of supply side economics allows ultimately for a harmony of economics. The issues is not weather to replace supply side capitalism with demand side socialism as our current government is trying to persuade us to do, it is simply to find a balance between how much interference to interject into our markets.
A quote from FDR's treasury secretary on Keynesian economics. “We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started. And enormous debt to boot.
The_AnonymusProfit 1 year, 3 months ago
An in a liberal response to moonchild7, mooney if you were half the lib you think you are then you would no that neither the mother nor they egg came first, the first was the proto mother.
teufelhunden 1 year, 3 months ago
I've said it once and I'll say it again...NEVER has this country been so divided. Remember "United we stand, divided we fall". Maybe just maybe that is exactly the agenda.
marathonman 1 year, 3 months ago
Great piece Walter. Look at all the lefties/lug nuts and their immediate criticisms. Taxing folks at unreasonable percentages of their salaries/earnings/wealth is not the answer to our woes. A flat tax is more sensible at this time than at any other period in history. Everyone should share in fixing infrastructures not just those who are achievers. For far to long, since the 50's, we have been allowing our elected officials to dictate the terms of everything. We have even given them special attention and honor to the point that they believe they are "absolutely" in power. They have moved the system forward to where we are today when the elections are manipulated for their favored outcomes, never mind what 'johnqpublic' thinks or wants. So, we are at a crossroads when we must change the system by which we elect our representatives to a system in which it is, again, 'of, by and for the people'. Dusty Rhodes and Jim Heim are the worst of the worst on these blogs as they attempt to control the commentary. Look how far this discussion has gone from Walter's original piece. It is time to throw out all the bums who call themselves politicians in favor or real Americans from real American communities with ideas that reflect the will of those who sent them. Unless we do, we will become the latest version of the USSR, China, Venezuela, North Korea and others who believe utopia is given by the central government and not by God.
teufelhunden 1 year, 3 months ago
I don't think it is a mystery how one gets pregnant. Many people have access to birth control but choose not to use it (Medicaid).
teufelhunden 1 year, 3 months ago
Another thing and then I'm outta here (haha)...Obama is looking more and more like a wannabe dictator everyday....there...yeah I said it!!!
AFCHIEF 1 year, 3 months ago
@teufelhunden. You are correct, why do you think Obama is so buddy buddy with Hugo Chavez.
skylinefirepest 1 year, 3 months ago
Moonie...somehow the idea of you running around with a gun just sends shivers down my spine! Your writings indicate to me that the "government you love" should have turned you down on a mental basis!! Getting OBL was definitely a good thing, though Obammer deserves very little credit for it! But unemployment has gone down?? Where's all these new jobs he's taking credit for?? Where is the HONEST accounting of how many people are out of work?? Given up looking?? I think he's looking forward in time to after he's soundly defeated at the polls and the economy does actually recover and businesses start hiring again. Now please answer this question...why on earth would you or anyone else think that the government has any right whatsoever to take more than fifteen percent of ANYBODY's money?? The "rich" that you so soundly hate worked for it the same way you did! Why do you keep hollering about "fair" when everyone in this great country is born to the same opportunity and can choose to work hard or smart...or not, or do drugs, or join gangs, etc.??? Why do I, or you, owe them one red cent?? Why do you think that it's a good thing for the government to take ever increasing amounts of the citizens money and decide that it's perfectly all right to send it to foreign countries that hate us, or give it to companies like Solyndra, or General Motors that simply squandor it and the taxpayer loses??? Why is that right, girl?????? And you say that we nasty right wingers hate Obama...well, you got that one right! I detest the man and the ground that he walks on and the air that he breathes because he's taking up space that a good person could use!! Obama's actions indicate that he really doesn't like this country and his fawning followers have enabled this liar to pass several programs that are putting this country into a third rate nation. He bows to foreign dictators, lessens the strength of our armed forces, stifles our industry, and kills our economy and somehow you and Jim Heim seem to think that's a good thing!!! Geez, and then you think that it's the right wingers that are crazy. Jim Heim has yet to answer my one repeated question to him...why does he think it's just great for his great grand-kids to be in hock for many thousands of dollars the day they are born??
skylinefirepest 1 year, 3 months ago
One simple answer to your argument, moonie...if you don't want me to accuse you of murder then don't jump in bed with every Tom, Dick, and Harry that comes down the pike!! Abortion should be permitted in only the most stringent of circumstances and BIRTH CONTROL FOR THE LAZY isn't one of them!!
OldSpook 1 year, 3 months ago
Hey, I enjoyed living in Caracas, Venezuela! But then again that was when they were more of a capitalist society vice the stink-hole they have become under President-for-Life Chavez.
moonchild7 1 year, 3 months ago
There are NO laws that can make the wealthy "INVEST" in the economy when taxes are cut. In fact it looks like a lot of companies now are laying off TONS of employees yet they will still make a lot of $$$ by letting that income sit in other investments that have nothing to do with creating jobs. Bill Clinton's Demand-Side economics of raising taxes on the RICH and lowering them on the POOR made our economy explode after the Reagan/Bush mess. The RICH business owners know they should invest more in business ventures now to get things going but they aren't. Why? Here's a supply vs demand experience of mine that illustrates it all perfectly. I like to buy/collect Depression Era Glassware and it has for many many years been very expensive because of high demand. So I have a small collection. Since about the time of 9/11 though the market for the glass changed dramatically. Sudddenly the glassware was everywhere, cheap and almost impossible to sell...there was no demand. Wow! I could buy pieces for next to nothing now. Yet it's pretty, sturdy and guess what? All Made in America! So why do Americans continue to buy cheap plastic plates and bowls at Walmart? Why? If Martha Stuart or even Oprah started to show the stuff on their tv shows people would be buying it again thus creating DEMAND. Now, how many U.S. Glass factories are there? Not many. If demand grew for these dishes then the factories here could start producing the stuff. Except many of those factories are closed and are still closing. Steuben Glass here since 1903 just closed it's factory in NY last fall. End of an era. Supply side, Forget about it.
OldSpook 1 year, 3 months ago
Here is something unusual, I'm actually going to agree with MC7 on this point. Although I prefer to buy the pottery made locally vice the Depression Glass. (although I must admit that I am now going to start looking for a set) After receiving a few pieces of locally made clay cookware as gifts, there is no way in Hades that I would/could purchase that Made in China rubbish at Walmart. The locally made (they had a shop in Southern Pines last year) pottery does cost more, but I only have to buy it once. It is heavy, durable, can withstand the grandchildren, looks better and keeps my money in the community. What's not to like?
ProudNC 1 year, 3 months ago
Moonchild7, DR, et al, I hope I never grow as bitter and hateful as you are! It's sad how you claim the right is nothing but a bunch of haters...have you sat back and read your posts? Nothing but hatred...I feel sad for you and the others here. There is absolutely nothing wrong with disagreeing with people but why do you have to be so hateful? Once you, and the other haters here start spewing your venom I "turn the page". I lose all respect for people who can't express their feelings/thoughts without being hateful. A long time ago my Daddy taught me that if someone is calling me a name it only means that he/she sees that flaw in him/herself. I try to remember that as I read through these threads.
TreadLightly 1 year, 3 months ago
WHAT IS WRONG WITH CHRISTIANITY and WHAT IS WRONG WITH AMERICA are two sides of the same coin. Not enough people practice it as designed.
When Karl Marx started teaching a new and improved way of government, it became obvious that it could not function under true Christianity. Not to be outdone, a group of theologans started teaching a new and improved Christianity that tolorates Marxism. We call it "Higer Criticism" or "Modern Theology." Problem solved!
It would have been impossible to remove the Christian from his church, just as it is impossible to remove the American from his country, so they just removed the Bible from the Christian, so that he continues to go to church. Except, he no longer follows Jesus, but follows the preacher. (No preacher would ever tell a lie.)
When I read that John D. Rockefeller put his money behind this "new" Christianity, I became suspicious. (Think George Soros...) He funded siminaries and helped organize the group that became the World Council of Churches.
When I found that this "new" Christianity teaches that Matthew did not write Matthew and Luke did not write Luke (among many other things), I smelled a rat. The new Catholic Bible explains this “new” theory in the introduction to The Gospel of Matthew. The famous "Q Document" or "Source Document" that is the basis of this theory has no historical record, literary record, quotation or even a mention in the 1700 years before the era of Karl Marx. And that document contains no miracles. Purely humanistic, with no virgin birth or no resurrection.
The Christian in the pew would not put up with that kind of assault on the Bible, so the average preacher does not say those things in his sermons. Many preachers (I like the think MOST) believe in the inspiration of the Bible and the account written about Jesus as it is written in the Bible. But most denominations have put some sort of filter on the preachers about what they can preach. DO NOT CONTRADICT THE CREED BOOK or other denominational policy.
So, the average Christian is seldom exposed to all the commands of Christ, as the average Christian does not do a lot of serious study in the text of the Bible. Most do not even own a complete concordance or program on their computer that allows them to look up issues for themselves. Just listen to the preacher. Sort of like the dark ages when the only Bible in town was in Latin and chained to the pulpit.
Thus Christians support the “fairness” of the progressive crowd, without asking whether Jesus would approve or not. The first clue should be that Jesus never put the welfare of the poor under the control of ANY government.
How is this related to America? See next post.
TreadLightly 1 year, 3 months ago
Americans could not be removed from their country, so the progressive movement just separates them from their Declaration of Independence and Constitution. It is not taught in school and no one studies its origin and principles.
Even our Supreme Court Justice Ginsburg broadcast on Egyptian media that our constitution is not the one to follow—look to South Africa.
The corruption in Washington could not prevail without taking away the protection of the Constitution. But we rely on the politicians (like the preacher) to tell us how it works and what is right or wrong.
The Bible says much about Christians caring for the widows and orphans. The part of the Bible that doesn’t get a lot of publicity is the cruelty that Paul suggested for the able bodied man. Rather than destroying his independence and destroying his ability to make it on his own, Paul said this.
For you yourselves know how you ought to follow
our example. We were not idle when we were with you,
nor did we eat anyone's food without paying for it.
On the contrary, we worked night and day, laboring and
toiling so that we would not be a burden to any of you.
We did this, not because we do not have the right to
such help, but in order to offer ourselves as a model
for you to imitate. For even when we were with you,
we gave you this rule: "The one who is unwilling to
work shall not eat." (2 Thes. 3:7-10, NIV)
If a man is not challenged, he does not develop the strength and skills to survive. I have read several little glimpses on these threads how some of you struggled greatly. And you survived. The poor man needs the same motivation to survive. When he is sick, help him. Otherwise, Paul says you are doing him more damage than good.
Our country functioned that way until the progressive era began in the early 1900’s. Only when John D. Rockefeller’s “new” religion came along did the church follow the progressive movement.
Where do we go from here? Follow Greece or follow our Constitution are the only two choices under consideration by most people, and far too many are on the Greece side.
How effective was the “new” religion in separating their followers from the Bible? Today, even the evangelical and fundamental Christians who believe that the Bible is the inspired word of God follow the same model—put the Bible on the shelf and listen to the preacher! And if some person asks about something he discovered in his Bible, his preacher gives him a theological reason that the plain words of the Bible do not mean exactly what they say!
And it leads to the same result. Everyone is happy with his religion, and no one asks about those commands that Jesus mentioned. Conservatives and progressives are both invoking the blessings of Jesus, and neither has a handle on religion beyond what the preacher said. Do you see why these are such knotty problems?
teufelhunden 1 year, 3 months ago
Thank you.
The_AnonymusProfit 1 year, 3 months ago
America has lost its way, much as the Roman Empire did. At a point it became inevitable that the Roman Empire would fall, America has past the point at which it can reverse its course. The only thing left now is to prepare for what is to come.
Zoey 1 year, 3 months ago
Oracle, how do I prepare? Enlighten me.....
moonchild7 1 year, 3 months ago
Thanks OldSpook, I guess. But remember, this is America and the Profit-Loss equation is still at play. What I mean is that some 'Dealers" in the Depression Glass market spent a lot of money on the stuff from years back and are still trying to get top dollar. Only if it is very rare or maybe still somewhat in demand should you pay a lot of money. For an example is the "Royal Lace" pattern which is one of the more expensive patterns. In the '90's a blue 8 " water pitcher was selling for $250.00. Someone on ebay now wants $500.00 for the same pitcher. So, they probably paid over $250.00 for it and they want to still try to double their money. I don't really know the demand of that pattern but in todays market paying over $100.00 is too much. The Sandwich Pattern is my favorite. I recently bought four small clear sandwich pattern luncheon plates(defunct Indiana Glass Co.) for $10.00. Those same plates sold for $18.00 each in the 90's! $10.00 vs $64.00? And Treadlightly, what in the world are you trying to say? You did say this though, "Jesus never put the welfare of the poor under the control of any government." But he did say to "Render unto Caesar, what is Caesar's"...Didn't he? Obviously the Roman Government had no Health Care or Food Stamps so Jesus did everything possible to help those in need. The utter chaos of our Society that would result if we went back to that era's every man for themself attitude would be disasterous. Grow up.
honesty2 1 year, 3 months ago
http://online.wsj.com/article/SB10001424052970204369404577206980068367936.html Interesting "Is it fair?" questions.
JimHeim 1 year, 3 months ago
Anyone who claims that Reagan reduced the top rate to 50% is ignorant. It was Democrat John F Kennedy.