BengaBenga said:
Kasz216 said:
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.
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Saving money... and investing in stocks create jobs...
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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?
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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.
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Indeed, so how does saving money create a lot of jobs? Maybe a few in trading and analysis, but nothing significant. Most of that money will be relatively stagnant for a couple of years and as such doesn't help the economy a whole lot. Besides the increase in income tax for rich people would not be such that it would change their financial situation a whole lot.
The US has a strange system where companies pay a lot of taxes and individual citizens have very low taxes. If you want to create jobs you'll have to lower the company tax, so cmpanies can hire people. Individuals don't hire people, comapnies do (in general).
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How does saving moeny create jobs? Because you save your money in banks.
Not pillowcases.
Banks need to lend money to make money.
