Sgt Staples
Mayor
When Liberal economic policies fail, as they always do, Liberals say that it is simply because government didn't spend enough or tax enough.
Evidently, Liberals think that only government spending creates jobs.
But let's look at economic mathematical fact:
When government increases spending on projects, such as building roads and bridges, it has to take that money from some other sector of the economy by taxation.
In other words government tries to increase productivity in one sector, by choosing where money is spent, while at the same time reducing productivity in the sector where that money was taken from (the Private Sector).
This results in no net job creation, as for every job government creates it destroys another job in another sector of the economy.
Actually it's worse than that.
If we look at Obama's stimulus package and divide the amount spent by even the inflated number of jobs that Obama says it created, we will find that the government spent about $250,000 per job created.
Since the average job created by the private sector costs the private sector about $60,000, we could have created over 4 times by as many jobs by adding 800 billion to the private sector through tax relief instead of giving it to government to decide where it would be spent, unemployment would be around 5.5% instead of 9%, GDP would be about 5% instead of the meager 1.7% it was all of last year.
That also means that the government would have received 4 times as much in tax revenue from those jobs, meaning the tax cuts would have eventually paid for themselves, rather than adding 800 billion to the debt.
That's why taking more from the private sector and giving it to government reduces revenue and tax cuts, which leave more money in the private sector increase revenue.
Tax revenue in Britain has dropped greatly after their recent tax increase. It always does.
The basic math and economic history prove it beyond all doubt or argument.
Every time the Capital Gains tax was reduced, revenue received from the capital gains tax INCREASED due to more money being available for investment. The Revenues received from that increased investment exceeded the revenues lost by the lower rate.
If Obama gets his way and Cap gains rates are tripled, revenue received from cap gains taxes will drastically be reduced as investment will be drastically reduced.
And since our economy is still struggling to recover from the punishment Obama is inflicting on it, we will slide into immediate severe recession or even depression.
The math and historical fact prove it.
Something you Obama Zombies might want to consider.
Evidently, Liberals think that only government spending creates jobs.
But let's look at economic mathematical fact:
When government increases spending on projects, such as building roads and bridges, it has to take that money from some other sector of the economy by taxation.
In other words government tries to increase productivity in one sector, by choosing where money is spent, while at the same time reducing productivity in the sector where that money was taken from (the Private Sector).
This results in no net job creation, as for every job government creates it destroys another job in another sector of the economy.
Actually it's worse than that.
If we look at Obama's stimulus package and divide the amount spent by even the inflated number of jobs that Obama says it created, we will find that the government spent about $250,000 per job created.
Since the average job created by the private sector costs the private sector about $60,000, we could have created over 4 times by as many jobs by adding 800 billion to the private sector through tax relief instead of giving it to government to decide where it would be spent, unemployment would be around 5.5% instead of 9%, GDP would be about 5% instead of the meager 1.7% it was all of last year.
That also means that the government would have received 4 times as much in tax revenue from those jobs, meaning the tax cuts would have eventually paid for themselves, rather than adding 800 billion to the debt.
That's why taking more from the private sector and giving it to government reduces revenue and tax cuts, which leave more money in the private sector increase revenue.
Tax revenue in Britain has dropped greatly after their recent tax increase. It always does.
The basic math and economic history prove it beyond all doubt or argument.
Every time the Capital Gains tax was reduced, revenue received from the capital gains tax INCREASED due to more money being available for investment. The Revenues received from that increased investment exceeded the revenues lost by the lower rate.
If Obama gets his way and Cap gains rates are tripled, revenue received from cap gains taxes will drastically be reduced as investment will be drastically reduced.
And since our economy is still struggling to recover from the punishment Obama is inflicting on it, we will slide into immediate severe recession or even depression.
The math and historical fact prove it.
Something you Obama Zombies might want to consider.