Facts show more jobs were created under higher Clinton era tax rates than the Bush era tax rates so how can?

There's no evidence because tax rates don't impact the economy as much as people think or at least the conservatives claim. If I have $1,000, I can spend it or invest it how I want which will generate economic activity and increase the economy. Lets say the Government takes that $1,000 from me and then spends it all, that would create $1,000 in economic activity.

In other words, while I might have less, the economy theoretically should stay the same pending a few assumptions. The real question is who can spend it in a way that generates the most economic activity and unfortunately the answer is it depends. The real problem is that I have a choice, I can save this money or I can spend it.

If I choose to spend it then someone else makes money that they can then spend again and then they can do the same thing on and on. If I don't choose to spend it, then it's as if at the moment the money isn't there. The richer someone is, the more they save primarily because you eventually reach a point where it becomes difficult to spend all your wealth.

In fact, in many cases taking the time to spend the money may actually begin to cost valuable time. As wealth becomes concentrated at the top of the income spectrum, more and more money becomes saved and not re-invested or if it is invested it is invested in assets that are traded among only the rich. As such, the economy becomes starved for investment and in an environment of lower taxes, it hinders the Governments ability to justify large transfers of money to get the economy going again.

I'm not saying that this is why we are in the mess we are in. I do believe that lower taxes can have a stimulative impact on the economy, just not as big of one that you would get through large transfer payments that are targeted to specific activities that generate jobs. I would not oppose tax cuts that target only the poor and middle class and even one that increases the EIC because those are the individuals that will spend 100% of their income and stimulate the economy.

Legislation takes time, as is evident from the health care bill assessments. The Clinton years were fabulous, mostly because of what Reagan and Bush did in the previous years. Clinton was SO lucky to ride that wave.

Dot Com was just starting. All these new companies arose. By the time Bush arrived, that bubble burst and millions of jobs were lost to technology, (no longer was the reception needed.) People started to open on line businesses, which definitely took away from retail.

Etc........ History proves that more revenue is generated when taxes are lower........over and over and over again. BTW.....Clinton lowered the capital gains tax from 28% to 20%, which is another reason why we saw such growth, and how the very wealthy get away with not paying the top income tax rate. Can't you see the smoke and mirrors?

I cant really gove you an answer,but what I can give you is a way to a solution, that is you have to find the anglde that you relate to or peaks your interest. A good paper is one that people get drawn into because it reaches them ln some way.As for me WW11 to me, I think of the holocaust and the effect it had on the survivors, their families and those who stood by and did nothing until it was too late.

Related Questions