Standard Posted by joelnickel Posted on October 15, 2010 Posted under Politics Comments 4 Comments Another reason the GOP angers me… Taken from here. Advertisements Share this:FacebookTwitterEmailGoogleMoreLinkedInRedditPrintLike this:Like Loading... Related Federal DeficitGOPJobless BenefitsRepublicansTax Cuts Post navigation ← God … if only! that’d be awesome. The Amazing Sliding Japanese Cat ;) → 4 thoughts on “Another reason the GOP angers me…” A basic principle of labor economics is that increased jobless benefits in a period of downturn can lead to prolonged unemployment. It would be utterly ridiculous for the government to keep spending money on benefits when there are so many opportunities to stimulate true job growth. But you don’t hear either party discussing how to pour money into emerging industries. It’s either throwing tax cuts at the problem and hoping for the best, or throwing unemployment checks at the problem and hoping for the best, without the requisite amount of planning. Reply PS. are you coming to the Marker Social tonight? 🙂 We can continue the discussion tonight. 🙂 Reply I agree. The part of it that annoys me is that they’re so against taxing the richest 1% of citizens. Maybe I’m just a hippie but I even imagine making over $250,000 a year, and I fail to see the logic in major tax breaks for the richest Americans. The trickle-down effect doesn’t seem to be working. What are your thoughts, Jess? Reply The logic is that the top earners are, presumably, the ones who create jobs, and tax cuts for them will create investment capital that, presumably, will be used for that purpose. Note the repeated use of “presumably.” That’s why supply-side theory is so shaky: It relies on assumptions without guardrails. There have been examples of company CEOs who actually do use extra revenue for the betterment of their employees. The rest of the CEO population needs to get it into their heads that not only is this more ethical, it’s good for the bottom line; it makes customers trust you and it makes employees more productive. Regulation might have been a quicker fix, but the execs will always find ways to get around it if they really want to. I would also argue for more innovative solutions to poverty in order to narrow the income gap. If microfinance works for the Middle East, why couldn’t it work for North America? If convincing large companies to invest in poor areas worked for New York, why couldn’t it work for Winnipeg? The point is to shift income from public assistance to income from private payrolls, including one’s own. Expanding welfare would be unsustainable over the long run. Reply Leave a Reply Cancel reply Enter your comment here... Fill in your details below or click an icon to log in: Email (required) (Address never made public) Name (required) Website You are commenting using your WordPress.com account. ( Log Out / Change ) You are commenting using your Twitter account. ( Log Out / Change ) You are commenting using your Facebook account. ( Log Out / Change ) You are commenting using your Google+ account. ( Log Out / Change ) Cancel Connecting to %s Notify me of new comments via email.