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Old 11-13-2012, 04:58 AM
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horatio horatio is offline
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Anybody who thinks that tax rates cause unemployment during a recession (even if there wouldn't be a recession this wouldn't make any sense as tax rates didn't really change much in the last years) are utterly stupid.
Given that tax rates are on a historical low and given that the American upper class hasn't left the country when the "uber-communist" Eisenhower took more than 90c of their last earned dollar I even consider the standard "taxes undo incentives" story as being quantitatively fairly irrelevant during ordinary times.

But, well, for some people it is easier to live in a post-factual world and blame regulations, taxes, Mexicans or the crypto-Muslim socialist terrorist in the White House or warn about sky-rocketing inflation (the "back to Gold, its price is more stable than that of fiat money" morons) and sky-rocketing interest rates for government bonds (the morons who think that the US is nearly bankrupt) than realize that we have a worldwide demand shortage and too much debt in the balance sheet of private players. The pundits who warn about the rise of public debt don't understand that shifting debt from private to public players, via bank-bailouts, deficit spending and quantitative easing, is necessary to make consumers spend and companies invest again. The Fed or the government can act countercyclically and reduce its debt during a boom while private players cannot.

If only the majority of economists, the European elites and the GOP understood this tens of millions of people wouldn't have to suffer totally avoidable unemployment.
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