OCinBuffalo Posted October 14, 2008 Share Posted October 14, 2008 No, that's not what would happen. Cutting taxes would mean the wealthy would keep more, and the wealthy can only buy so many cars, toasters and whatever else, so consumer spending would drop. Right logic, wrong conclusion. You forgot the other half of the equation. The wealthy do keep more, which they would promptly invest. Why wouldn't the rich ever want to become richer? Investment = capital = R&D, expansion, etc. = new jobs/more jobs/higher salaries. Well, that's the way it's supposed to work. Unfortunately, we are also in a service economy that hasn't been fully transitioned yet. This is why salaries for low income people haven't gone anywhere. There's simply not enough competition for employees, and of course illegals don't help either. Of course they aren't the only factor, corporate stupidity is another, but the fact that they keep making less than minimum wage drags down the salaries of every other low level worker. And with all these low salaries spending power continues to decline. Link to comment Share on other sites More sharing options...
Da Big Man Posted October 16, 2008 Share Posted October 16, 2008 Good thing President Obama will reverse that trend... How much meth do you do a day anyway? Link to comment Share on other sites More sharing options...
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