The Tea Party - how frightening is this movement?

[ManusJustus]

HappySqurriel said:

ManusJustus said:

The only thing that matters is if there is money to be made.  Tax the wealthy 80% of their income and they will still start businesses and hire workers to make a profit and meet demand, just like America in the 1950's.  You could not tax the wealthy at all, heck you can give them money, but they won't create jobs unless there is money to be made meeting demand.

Thats the lesson that both the Republicans and Democrats should have learned with the Bush and Obama tax cuts.

No, taxing individuals like that will ensure that they pay themselves 5 times as much; and recover the costs by paying their employees less and increasing the cost of their goods/services more.

Employers do not decide how much their employees are worth, the market decides how much they are worth.  Employers have to pay their employees what the market values says they are worth, otherwise they won't have as good employees or, if its too low they won't have any employees.  The reason that mechanical engineers get paid $50,000 a year while fast food workers make $20,000 a year isn't because their employers just decided to pay them some arbritary number, its because thats how much their labor is worth on the market.

Nor do they decide the value of goods, the market decides the value of goods.

To answer your side note, the same as everybody else.  Here, we are effectively deciding to limit luxury spending of the rich to promote necessity spending of the poor.  Its ultimately a social and moral approach rather than purely an economic one.