How effective are the Bush tax cuts at creating jobs?

[Kasz216]

richardhutnik said:

Kasz216 said:

BengaBenga said:

Tax cuts for incomes over ~$100,000 don't work in general.

Above that salary you have enough "spare" money to waste on consumer goods anyway, so most of it will be saved or invested in stocks. Especially the US economy is very reliant on consuming, so it's the middle incomes (the vast majority of the people) that fuel the economy by their buying power. It's likely that a tax cut for middle incomes WILL be spend directly, so will help the economy.

Saving money... and investing in stocks create jobs...

Saving money might.  Investing in stocks does how, unless it is an initial IPO going to a new company that is getting listed for the first time?  You can cause stock prices to inflate if more people buy stocks.  MAYBE a company can happen to then sell stock and use the money to invest.  But, guess what has happened the past decade regarding this.  As companies were laying off workers, the stock price was going up and more people were buying stock, thinking the company was more profitable as a result of smaller headcount.  So, exactly where does buying stock cause more jobs?

One can say INVESTING, where the money goes directly to companies to start up, and they need more labor, would create jobs.  BUT, if the investors decide to invest in emerging markets, like China and India, rather than established markets like the United States, HOW does this create a better job situation than if the government spent money inside the United States?

When you buy stocks... where does that money go?

That would be to the person selling the stocks.

The money at worst will be saved... and quite possibly could lead to even better options.