Thread: Explain to me how RAISING taxes on big business will help create more jobs?

Originally Posted by Badmutha

Any Questions?

Why don't you answer my question?

We KNOW that trickle-down does not lead to significant improvements in unemployment. And the American people are catching onto that reality.

Originally Posted by Johnny-C

Why don't you answer my question?

We KNOW that trickle-down does not lead to significant improvements in unemployment. And the American people are catching onto that reality.

Unemployment Rate after The JFK Tax Cuts



Unemployment Rate after The Reagan Tax Cuts



Unemployment Rate after The Bush Tax Cuts


Can you hear me now?
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Originally Posted by Badmutha

...Can you hear me now?

I know that you haven't explained a thing.

Originally Posted by Badmutha

Unemployment Rate after The JFK Tax Cuts



Unemployment Rate after The Reagan Tax Cuts



Unemployment Rate after The Bush Tax Cuts


Can you hear me now?
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These graphs display a fundamental phenomena of tax policy: the law of diminishing returns. A tax cut only increases aggregate demand, thereby decreasing unemployment, and increasing real gross domestic product for so long.

Still, it is worth noting that correlation does not imply causation, especially when discussing a matter with so many non-linearities as job creation/unemployment.

Originally Posted by Johnny-C

I know that you haven't explained a thing.

What needs to be explained? What are you having trouble with?

When the parasite shrinks.....the host organism grows....
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Originally Posted by Badmutha

What needs to be explained?...

This explains it all fairly well.

Trickle-down was a disaster for everyone in the country except the top 10% of “earners”, seeing as how they made (*)(*)(*)(*) sure “trickle” was the operative word. Although the 80′s were a productive and highly profitable time for Wall Street, the rest of us were struggling just to get by. The “trickle” was just that: a mean, tiny drip of the money-pot like a leak in your roof so small you might not notice it for years. The pool stayed at the top, so deep you could have set up a diving board.

Originally Posted by Johnny-C

This explains it all fairly well.

The concept of 'trickle-down' economics ignores the complex non-linearities of political economy.

Originally Posted by thediplomat2.0

These graphs display a fundamental phenomena of tax policy: the law of diminishing returns. A tax cut only increases aggregate demand, thereby decreasing unemployment, and increasing real gross domestic product for so long.

At what point, does the government spend your money better than you?

Tax Rates = Growth Rates......set one and you set the other....the massive decline in Unemployment that takes place after tax cuts is that adjustment.

Still, it is worth noting that correlation does not imply causation, especially when discussing a matter with so many non-linearities as job creation/unemployment.

But of course......its Just another coincidence.....
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Originally Posted by Badmutha

At what point, does the government spend your money better than you?

Tax Rates = Growth Rates......set one and you set the other....the massive decline in Unemployment that takes place after tax cuts is that adjustment.



But of course......its Just another coincidence.....
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Your inquiry is one of philosophy, not of economic reality. The only reason why I can determine that a tax cut renders increases in aggregate demand, decreases in unemployment, and increases in real GDP is because that is the theoretical nature of said fiscal policy as per Neoclassical economic analysis. This however, is logically speaking, a hasty generalization, as well as a questionable cause and in statistics, an instance where correlation does not imply linear causation between two variables.

Originally Posted by thediplomat2.0

Your inquiry is one of philosophy, not of economic reality. Furthermore, the political economy as a whole is too complex for correlation to imply or conclude linear causation. Any reasonable financier or economist would say the same thing.

Three of the largest periods of economic growth in US History, coming after three of the largest tax cuts in history..... takes it from a philosophical level to the top shelf in your reality trophy case.
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