Quote:
Originally Posted by budgetaudio6
the not not paying for it part is what will get us in trouble...With tax cuts for business, shouldnt that mean that they have more money to expand? And what business doesnt want to expand...at least with teh war we got rid of one tyrant, but i guess it equalizes with obama being in office now...
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No, business' will not grow just because they have more money. They grow and hire more people if the demand for what they are making goes up. It is the same in the service industry. More demand for services equals business growth.
There are business owners here in the trades. I am sure they are like me. When we were in the huge housing boom of 1995 to 2006 here I added HVAC techs and installers. I bought trucks and vans. Equipment and supplies orders would exceed $150,000 a month. We were rolling in dough. Then the housing market shut off like a spigot being closed. The result was immediate layoffs, the selling of vehicles, and supply/equipment orders dropped by 80%. I made a decision to get out. Our government cannot provide a stable economic environment for small business to survive and have some day to day stability.
You see demand, for housing, created jobs in my case. When demand was gone the jobs were gone.
Along the same lines huge tax cuts for the wealthy will not create jobs. We have tried the idiotic supply side voodoo reganomics model for thirty years. It is pretty damn clear, to anyone with half a brain, that it does not work. It was one of the major factors that led to the financial meltdown in 2008.
If the supply side macroeconomic model was working we would have very high wages, and great bennies, as business' compete for workers. Unemployment would be at a stagnant 2.5% which is as low as it can go because of the temporarily unemployed people that are leaving old jobs to start a new jobs.
I just don't see that happening.