ECONOMICS
101
101
Suggested Reading:
Permanent Tax Relief - Not Tax "Holidays" - Stimulates Economic Growth by Stuart M. Butler, Ph.D.
Permanent Tax Relief - Not Tax "Holidays" - Stimulates Economic Growth by Stuart M. Butler, Ph.D.
Wealth is not finite. More can be created. Anyone who wants a big slice of pie can have some, any time they want to make some.
It is not right to take someone else's pie, just because they have more than you.
Shifting the burden on so few takes the money away from the very people who were going to use that money to grow their companies. This means jobs. Often, when such a burden is shifted, on so few, the few find it best to simply take what they have earned, close up shop, and go home. This means a loss of jobs.
---Glenn Woods
It is not right to take someone else's pie, just because they have more than you.
Shifting the burden on so few takes the money away from the very people who were going to use that money to grow their companies. This means jobs. Often, when such a burden is shifted, on so few, the few find it best to simply take what they have earned, close up shop, and go home. This means a loss of jobs.
---Glenn Woods
If I were a debt counsellor If I were a debt councelor, and you were in debt,
I would start by cutting up your credit cards.
Borrowing money to pay your bills just digs a deep hole - with interest.
Borrowing money to pay your past debts just digs a deeper hole - with more interest.
I would scold you if you were writing bad checks to pay debt.
That practice is illegal for many reasons.
It puts you in danger of going to jail,
and does nothing but hurt the people who have received your bad checks. - just to name two.
I would take a look at all the useless spending
you engage in and tell you to cut back.
No satellite or cable TV. You can live without it.
Why pay for two new cars when you and your wife can survive with one used one.
A smaller apartment or house would do.
And so on.
If I were a debt counselor,
and you were in The Government.
I would tell you to stop borrowing to pay the bills.
Stop borrowing to pay off old debt.
Just STOP BORROWING!
Stop printing more money -
you are not spending your way out you are just hurting everyone.
Cut back on the piles of useless government programs and pork, and no new ones.
Only in this way can anyone - person, government, or nation - survive.
I would start by cutting up your credit cards.
Borrowing money to pay your bills just digs a deep hole - with interest.
Borrowing money to pay your past debts just digs a deeper hole - with more interest.
I would scold you if you were writing bad checks to pay debt.
That practice is illegal for many reasons.
It puts you in danger of going to jail,
and does nothing but hurt the people who have received your bad checks. - just to name two.
I would take a look at all the useless spending
you engage in and tell you to cut back.
No satellite or cable TV. You can live without it.
Why pay for two new cars when you and your wife can survive with one used one.
A smaller apartment or house would do.
And so on.
If I were a debt counselor,
and you were in The Government.
I would tell you to stop borrowing to pay the bills.
Stop borrowing to pay off old debt.
Just STOP BORROWING!
Stop printing more money -
you are not spending your way out you are just hurting everyone.
Cut back on the piles of useless government programs and pork, and no new ones.
Only in this way can anyone - person, government, or nation - survive.
If I were a debt
counselor
by Glenn Woods
by Glenn Woods
With the major steps toward socialism that we are seeing - I think it is time to go back to basics.
Here are the basics of economics that the American people seem of have forgotten.
---Glenn Woods
---Glenn Woods
NEED
A man owns a farm. He needs a tool to help him work the farm. He does not have the knowledge or equipment to manufacture the tool himself. So, he takes some of what he has produced on the farm to a man who does manufacture what he needs, and offers it in trade.
MONEY
The man who produces the tool that the farmer needs does not need, or want, any of what the farmer has to trade. So what is the farmer to do? He takes his product to someone who will take what he has in exchange for MONEY.
Money is a tool of trade. You can exchange it for anything. All you need to do is negotiate how much. With money, the farmer can now trade for the tool that he needs.
Money is, in effect, a check, needing something of value behind it to create its value. Just printing money does not give the money any value. Value only comes when something is produced. This is why printing more money, in times of economic crises, reduces the value of money.
WEALTH
If the man creating the tool that the farmer needs can sell enough of them to farmers he will become wealthy. As long as he engages in fair trade there is nothing wrong with this.
COMPETITION
Others, noticing that the tool maker is making a lot of money may figure out how to produce and sell the same tool for less, in order to sell more than the original tool maker. This competition would force the tool maker to find a way to lower his price to gain his business back.
Eventually both tool makers will begin to put a portion of their profits into research and development of better, cheaper tools, in order to win business.
All of the above is why nations like America have been ahead of the rest of the world in technological advancements, and the creation of wealth.
The only other way to acquire wealth is to work for someone who creates it - beg for it - steal or rob for it.
Asking for the government to give you a handout, rather than working, means that the government will approach those who create wealth and take their profits from them to provide the handout.
Taking profits from the producers hinders their ability to - create a cheaper product - create a new, improved, product - expand their business - all of which effects job creation.
Raise taxes too high and these same companies will relocate their research, development, and manufacturing jobs, to other countries where the taxes are not so high, allowing them to, once again, spend a portion their profits on manufacturing, research and development.
SOCIALISM - takes money from the producers and redistributes it to the rest of society. This is why Socialist countries have always lagged behind Capitalist countries in innovation, job creation, and the wealth of it citizens. The more their governments take from the wealthy, the worse their economies become.
A man owns a farm. He needs a tool to help him work the farm. He does not have the knowledge or equipment to manufacture the tool himself. So, he takes some of what he has produced on the farm to a man who does manufacture what he needs, and offers it in trade.
MONEY
The man who produces the tool that the farmer needs does not need, or want, any of what the farmer has to trade. So what is the farmer to do? He takes his product to someone who will take what he has in exchange for MONEY.
Money is a tool of trade. You can exchange it for anything. All you need to do is negotiate how much. With money, the farmer can now trade for the tool that he needs.
Money is, in effect, a check, needing something of value behind it to create its value. Just printing money does not give the money any value. Value only comes when something is produced. This is why printing more money, in times of economic crises, reduces the value of money.
WEALTH
If the man creating the tool that the farmer needs can sell enough of them to farmers he will become wealthy. As long as he engages in fair trade there is nothing wrong with this.
COMPETITION
Others, noticing that the tool maker is making a lot of money may figure out how to produce and sell the same tool for less, in order to sell more than the original tool maker. This competition would force the tool maker to find a way to lower his price to gain his business back.
Eventually both tool makers will begin to put a portion of their profits into research and development of better, cheaper tools, in order to win business.
All of the above is why nations like America have been ahead of the rest of the world in technological advancements, and the creation of wealth.
The only other way to acquire wealth is to work for someone who creates it - beg for it - steal or rob for it.
Asking for the government to give you a handout, rather than working, means that the government will approach those who create wealth and take their profits from them to provide the handout.
Taking profits from the producers hinders their ability to - create a cheaper product - create a new, improved, product - expand their business - all of which effects job creation.
Raise taxes too high and these same companies will relocate their research, development, and manufacturing jobs, to other countries where the taxes are not so high, allowing them to, once again, spend a portion their profits on manufacturing, research and development.
SOCIALISM - takes money from the producers and redistributes it to the rest of society. This is why Socialist countries have always lagged behind Capitalist countries in innovation, job creation, and the wealth of it citizens. The more their governments take from the wealthy, the worse their economies become.
It has been argued that it is not "fair" that these few people hold most of the wealth,
but to believe that you must first think that wealth is finite.
but to believe that you must first think that wealth is finite.
Forget what you've heard.
Lets take a look at who REALLY pays taxes
Actual numbers provided by the IRS
Lets take a look at who REALLY pays taxes
Actual numbers provided by the IRS
No one man
can make a pencil.
A lesson in economic freedom
by Milton Freedman
can make a pencil.
A lesson in economic freedom
by Milton Freedman
HOW MUCH DO WE OWE?
TAX THE RICH TO PAY THE DEBT?
HIGHER TAXES ON RICH; VOW TO CUT DEFICIT BY 2/3
????
But the problem with this is that raising taxes has always slowed down the economy.
A slower economy means that less tax money actually comes into the government.
But the problem with this is that raising taxes has always slowed down the economy.
A slower economy means that less tax money actually comes into the government.
To understand this you must think of the government as a volume business.
Lets take Walmart, as an example: Walmant did get where they are today with high prices. They got to where they are today by lowering their prices and then selling high amounts of volume. Each sale might take in less money, but there are so many sales they make more money.
Collecting taxes is a volume business: When taxes are high people hide their money and spend less. This slows the economy, which means a loss of jobs. This means less tax money reaches the government.
When taxes are low people spend more money. With more money moving around the economy more jobs are created and so more taxes are created.
This point has been proven each time it is tried. Obama and the Democrat party will raise taxes, and so our economy will slow even more, costing more jobs, bringing less money into the government, which will raise our deficit even higher, making the Democrats want to implement more government programs to save the people out of work, which means more money spent, which means more borrowed, and higher taxes to pay for it, and so on....
I fail to understand why this lesson has not yet been learned.---Glenn Woods
Lets take Walmart, as an example: Walmant did get where they are today with high prices. They got to where they are today by lowering their prices and then selling high amounts of volume. Each sale might take in less money, but there are so many sales they make more money.
Collecting taxes is a volume business: When taxes are high people hide their money and spend less. This slows the economy, which means a loss of jobs. This means less tax money reaches the government.
When taxes are low people spend more money. With more money moving around the economy more jobs are created and so more taxes are created.
This point has been proven each time it is tried. Obama and the Democrat party will raise taxes, and so our economy will slow even more, costing more jobs, bringing less money into the government, which will raise our deficit even higher, making the Democrats want to implement more government programs to save the people out of work, which means more money spent, which means more borrowed, and higher taxes to pay for it, and so on....
I fail to understand why this lesson has not yet been learned.---Glenn Woods
Will the Presidents budget bankrupt us?
The Tax Capital of the World
New York, will impose a two percentage point "millionaire tax" on New Yorkers who earn more than $200,000 a year ($300,000 for couples). New York has been hurt by the financial meltdown, and its $132 billion budget is now $17.7 billion in deficit. The days of high-roller Wall Street bonuses that finance 20% of the New York budget are long gone. The richest 1% of New Yorkers already pay almost 40% of the income tax, and the top 0.5% pay 30%.
New York, will impose a two percentage point "millionaire tax" on New Yorkers who earn more than $200,000 a year ($300,000 for couples). New York has been hurt by the financial meltdown, and its $132 billion budget is now $17.7 billion in deficit. The days of high-roller Wall Street bonuses that finance 20% of the New York budget are long gone. The richest 1% of New Yorkers already pay almost 40% of the income tax, and the top 0.5% pay 30%.
On second thought
Why not REVAMP the tax system all together?
Check this out.
http://www.fairtax.org/site/PageServer
Why not REVAMP the tax system all together?
Check this out.
http://www.fairtax.org/site/PageServer
Our tax system explained.
16 March 2009
The Obama Budget: Spending, Taxes, and Doubling the National Debt
By Brian M. Riedl
Backgrounder #2249
President Obama has framed his budget as a break from the Bush Administration's policies. However, Obama's budget would double the publicly held national debt to more than $15 trillion and hike annual spending from $24,000 per household to $32,000. Obama's budget would also raise taxes by $1.4 trillion over 10 years. These policies would raise taxes for everyone, not just "the rich."
WHAT BUDGET?
by Glenn Woods
If you are borrowing stacks of money, and you have NO idea how much, then spending that money as fast you as you can, with no idea where the money is going - you do not have a budget. A budget is when you take the time to examine how much you have, then make a prioritized list of what you will be spending that money on, item by item. You quit spending money before you run out of it, no matter if you have more on the list or not, leaving a reserve, just in case you hit hard times. THAT IS A BUDGET! The president, and congress, might submit their budgets, but they have no intention of sticking too it. They continue to borrow unknown and vast amounts, as fast as they can, spending it as fast as they can with no idea what they are spending it on. This congress, and this administration, have NO budget.
The Obama Budget: Spending, Taxes, and Doubling the National Debt
By Brian M. Riedl
Backgrounder #2249
President Obama has framed his budget as a break from the Bush Administration's policies. However, Obama's budget would double the publicly held national debt to more than $15 trillion and hike annual spending from $24,000 per household to $32,000. Obama's budget would also raise taxes by $1.4 trillion over 10 years. These policies would raise taxes for everyone, not just "the rich."
WHAT BUDGET?
by Glenn Woods
If you are borrowing stacks of money, and you have NO idea how much, then spending that money as fast you as you can, with no idea where the money is going - you do not have a budget. A budget is when you take the time to examine how much you have, then make a prioritized list of what you will be spending that money on, item by item. You quit spending money before you run out of it, no matter if you have more on the list or not, leaving a reserve, just in case you hit hard times. THAT IS A BUDGET! The president, and congress, might submit their budgets, but they have no intention of sticking too it. They continue to borrow unknown and vast amounts, as fast as they can, spending it as fast as they can with no idea what they are spending it on. This congress, and this administration, have NO budget.
Worth Reading
Federal Spending by the Numbers 2009
by Brian M. Riedl
Federal Spending by the Numbers 2009
by Brian M. Riedl