
Originally Posted by
Aslan
Again; this is all about assumptions you are making...
You are working off the trickle-down economics model that tax cuts and less regulation will (WILL...or at least "Probably Will") lead to job growth. That is one of the biggest lies many people believe. It simply doesn't work in a global economy:
1) Any business owner (who is honest) will admit that "taxes" rank well behind demand in terms of the decisions they make regarding expansion of their business. If I own a pizza store, and it's packed, and a building is for sale down the road that could better accommodate my growing business...I will look at all the financials, then determine if it makes sense. Taxes are a small, tiny part of that decision. Remodeling, land purchase, start-up costs, additional employees, etc...these far outweigh taxes financially speaking.
2) If you are a business owner, the profitability target is usually around 8% because it was always the logic that bank accounts (savings) and/or real estate could offer 2-5%...and the stock market 6-7%...so it makes sense to be an entrepreneur if you can get 8% or better. Larger businesses aim for more in the 10-12% range but have a "cushion" should they fail. (They may miss their target, but are still profitable) Smaller businesses have a target on par with both demand and their own expectations.
For example; If I make 35,000/year and decide I want to open my own bowling pro shop....I need to make probably $75,000/year in profit in order to maintain my current standard of living and pay the mortage on the place or the fee to the bowling center...and I need to cover my own benefits.
But here's where conservatives try to "trick us". They say things about taxes crushing their business...then claim they have to lay people off or downsize...then take a trip to Tahiti. They NEED to make lets say $75,000...and lets say they WANT to make...$150,000. If one year, they make $120,000....they cry FOUL! Regulations and taxes are KILLING them!! Are they? So, you used to make $35,000....you could maintain that same lifestyle on $75,000 profit....you make $120,000 profit...??????
And this is the problem with the Republican party and why Bernie Sanders is resonating with folks. It's not that business owners are going under due to Obamacare or the EPA or any other "socialist" thing Ted Cruz hates. It's the question Republicans HATE more than any question in the World....What is ENOUGH? What amount of money is "enough". At what point, can you AFFORD taxes? Conservatives HATE that question...corporations hate that question.
The reason why populists are becoming more POPular is because of the failed policies of George W. Bush. I know conservatives want to pretend he doesn't nor ever did exist....but this a guy who ran on the Karl Rove platform...the RNC platform. The government had our money (surplus, thanks Bill Clinton) and GW was going to give it all back! He sent us all checks for like $400 or something. And the rich and corporations (job creators?) got even more. And, if trickle down economics WORKS....those JOB CREATORS should have created jobs....but they didn't.
And I can attest to this better than anyone. Without naming names...the company I worked for was a large, large corporation and was buying up smaller corporations pre-2008 market collapse. What they were also doing, was taking all those wonderful tax cuts...and opening some brand new, beautiful, big factories...in China. Then, market collapses...the company started closing down every US plant they could. All over the country...New Jersey, Mississippi, Michigan...but not China. China was going to be the next superpower....cheap, ample supply of labor....billions of potential consumers. And the US plants paid the bill. They made the goods, sold em, made profit....profit went to enhancing their holdings in South America and Asia.
3) Trickle down economics has FAILED...because in a global society...with no restrictions on tax breaks (Bill Clinton actually cut taxes but had requirements that domestic job creation be part of the deal...much to the shagrin of corporations back then). If you gave Henry Ford a tax cut, he built a plant in Indiana. You give Ford a tax cut now, they build a plant in India or Shanghei or eastern Europe. Anywhere labor costs are low. I'm not saying it never worked, but it can't work now. Now all it does is redistribute wealth to the top 9%.
4) A strong economy needs consumers. Consumers need "discretionary income". That comes from wages and wage growth. The biggest mistake corporate America makes (over and over again) is to celebrate companies that "cost cut" by laying off thousands and thousands of workers. It's seen as a "strength" of a manager...that he/she can make those tough decisions. But what is the macro effect of laying off 1000 people. Those 1000 people have lost their income and now have virtually no discretionary spending. That means...profits for the corporations sink further....more layoffs. It's a viscious cycle. And the more people left jobless and homeless...the more wealthy the top 2% get....because their money is based on perception....by the stock market. Then one day, even some of the top 6-9% start getting hurt as markets take a tumble. Want an example? Henry Ford made a car (Model T) that he wanted affordable enough that those making it could also buy one. On the flipside, Tesla makes cars most people can't afford....and Tesla, with it's soaring stock price....darling of the stock exchange...is not a profitable company. It only makes money because it is subsidized by the government....heavily subsidized. Why are our tax dollars going to prop up a company that makes products 98% of Americans can't afford?
So, NTM (who I sorta think is Iceman...like an alias we wouldn't figure out....but I sorta don't think that....posts are too short and properly spelled....hmmmm...), to answer your question...I support Bernie's populist ideas economically speaking because he is simply trying to get rid of wealth inequality that globalization has led to in this country. And not to be an alarmist, but if wealth inequality gets too much worse...you'll have far more serious problems. Our solid middle class is the bedrock of our country...it's what makes us better than China and other countries. If we lose that...and it's been eroding for decades...we're done. US power is not it's military...it's the US consumer. We dictate terms because if we don't buy their stuff...even though we are just one country of many...it cripples the other country. And, that's another lie that gets told....that we can't embargo China or they will embargo us back. That's a valid argument when both countries are 50/50 importers/exporters...otherwise...not a solid argument at all. China stops buying our goods, we go into a recession. We stop buying Chinese goods...China collapses upon itself and starves to death. Russia already showed what happens when you have a strong military and no economy....you can't support the military.
What is really going to hurt Bernie is the social stuff. He's already seen as a left-wing nut job...but moderate white males are willing to buy in....barely. But as soon as he starts pushing prison reform and starts aligning himself with extremists from the left (like blacklivesmatter)....many moderates will just hold their nose and flip a coin...and either vote for Hillary, Trump, or Rubio. Rubio wants open borders. Hillary is also in bed with blacklivesmatter....uh oh, that leaves Trump. How tempted will I be to stay home if that's the only option I have? Very tempted. I won't....but I'll be very tempted.
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