tag:blogger.com,1999:blog-4223398383609158624.post4866023133955684574..comments2024-02-24T00:37:43.087-05:00Comments on The Other McCain: Robert Reich: FoolRobert Stacy McCainhttp://www.blogger.com/profile/03084541621503669804noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-4223398383609158624.post-13578894136265491902009-07-11T07:44:43.689-04:002009-07-11T07:44:43.689-04:00Ludicrous!
Robert B. is not a fool.
Robert B. is...Ludicrous!<br /><br />Robert B. is not a fool.<br /><br />Robert B. is, of course, a dwarf.Rich Fadernoreply@blogger.comtag:blogger.com,1999:blog-4223398383609158624.post-12210783961894115052009-07-10T21:37:07.846-04:002009-07-10T21:37:07.846-04:00Tax cuts don't increase capital (not right awa...Tax cuts don't increase capital (not right away); what they do is remove a tremendous disincentive to putting capital at risk.<br /><br />Americans are actually being very smart with their money right now. They are ridding themselves of debt and are saving at a much greater rate than they did while they were being defrauded about the value of their (made up out of thin air) money by Greenspan's Fed.<br /><br />Real savings are being hoarded. There is a tremendous amount of capital that could be put to work in an instant.<br /><br />But the government is putting its thumb on the risk/reward scale in numerous ways: (1) taxes are too high. Why risk your capital if you can't keep what you earn? (2) the money supply is even more grossly inflated than it was a year ago. Preserving what you have takes a lot of time and effort; time and effort that you can't put into making more. (3) Obama makes clear every day, in every way, that wealth (except his own) is evil. Why risk your capital to build success, only to be demonized (and likely prosecuted) by the federal government? (4) Over-regulation has created massive barriers to entry into most fields. In the 1920's and '30's, people literally started car companies by building a prototype in their own back yards. Try doing that today, even if you're a fully trained automotive engineer. Between the Federal Motor Vehicle Safety Standards and the emissions standards and the mileage standards and the OSHA standards and the . . . well, suffice it to say that only a private equity fund with many billions could afford to back an auto start up today.<br /><br />Capital is a function of real savings. It flows according to immutable laws of risk and reward. The government is upping the risk at the same time it lowers the reward. Result: people are hoarding capital or taking it offshore. Cut taxes, cut regulation, stop punishing success, and it will flood back into the U.S., because we have the most productive workers in the world.Bertnoreply@blogger.comtag:blogger.com,1999:blog-4223398383609158624.post-56039840860211240422009-07-10T18:57:38.163-04:002009-07-10T18:57:38.163-04:00Right! Savings (capital), not spending, drives an...Right! Savings (capital), not spending, drives an economy.<br /><br />To make this point as simple as I can ... If you want to buy a Butterfinger and it costs $1, you first have to have the $1 (capital/savings).<br /><br />The government doesn't have any magic dust that can change this fundamental reality.theCLhttps://www.blogger.com/profile/13347161730925465757noreply@blogger.comtag:blogger.com,1999:blog-4223398383609158624.post-16253210170295849242009-07-10T18:42:43.502-04:002009-07-10T18:42:43.502-04:00I am certainly not a Robert Reich-ch-ch-ch-ch-ch (...I am certainly not a Robert Reich-ch-ch-ch-ch-ch (as Rush calls him)fan, but it seems to me that confidence in the economy by both the investor and the consumer are needed in order to break this boat known as "Economic Recovery" from its resting place on a government-created reef.<br /><br />In a more serious vain and in the immortal words of Randy Newman, I emphasize that "short people have no reason to live."gadflyhttps://www.blogger.com/profile/06219461694806089345noreply@blogger.com