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Economy Title: It's official: Analysis says bailouts saved economy Using econometric models, Alan Blinder and Mark Zandi argue that the bailouts, the stimulus and other extraordinary actions saved America from nothing less than another Great Depression. Blinder was vice chairman of the Federal Reserve. Zandi is chief economist at Moody's Analytics and advised Republican presidential candidate John McCain. Had Washington not taken any aggressive steps starting in 2008, the results would have been horrific, their study says. Real gross domestic product would have fallen a "stunning" 12 percent, rather than the actual decline of 4 percent. Nearly 17 million jobs would have vanished, twice as many as the real count. And the unemployment rate would have peaked at 16.5 percent. ... Ignoring what might have happened had the government not launched a vigorous response may be irresponsible, but it can be good politics. That's because many Americans — seeing the weak job picture and forgetting their own terror during the early days of the economic freefall - can be convinced that such polices were ineffective and possibly counterproductive. They remind me of family members who, four weeks after a quadruple bypass, want to know why Grandpa isn't dancing. At least the family knows that the operation was needed. Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 33. #3. To: lucysmom (#0) (Edited) Alan Blinder WOW! What News! A well known Keynesian moron and is neo-con pal think government spending is helpful. What will we learn next? The Japanese bailed their banks out in the early 1990s. They've now spent the better part of 2 decades in a rolling recession. The bank bailouts did one thing -- they prevent capital and talent from being freed up for more productive uses. Yes, without the bailouts and the "stimulus" there may have been a little more SHORT TERM pain, but we'd be well on the road to recovery at this point.
#7. To: jwpegler (#3) The bank bailouts did one thing -- they prevent capital and talent from being freed up for more productive uses. Hording seems to be what is preventing money from productive use at the moment.
#9. To: lucysmom (#7) (Edited) Hording I can always tell a brain dead, no nothing leftist from the words they use. "Hording" is the #1 tip off. "Greed" is #2. What is preventing money from being put to more productive uses at this movement is the looming increase in capital gains taxes, income taxes, health insurance mandates, regulations, and the uncertainly around cap and trade. Why should a business RISK their money to build a new facility or hire new people when the government is going to steal most of the potential benefit away? WHY? They shouldn't and they aren't.
#12. To: jwpegler (#9) What is preventing money from being put to more productive uses at this movement is the looming increase in capital gains taxes, income taxes, health insurance mandates, regulations, and the uncertainly around cap and trade. Because doing nothing gets nothing in return. Why is it that the Scandinavian seem to be doing pretty well at the moment - sky high tax rates and all.
#15. To: lucysmom (#12) Why is it that the Scandinavian seem to be doing pretty well at the moment - sky high tax rates and all. ROTFLMAO. Corporate tax rates:
You need you pull your head out of your 1960s text books and join the real world.
#26. To: jwpegler (#15) Corporate tax rates: The 39% tax rate applies to business with profits between $100,000 to $335,000. Earn less, the rate is lower and oddly enough, earn more and the rate is lower. Business income tax rates start at 15% for those with $50,000 or less in profits.
#28. To: lucysmom (#26) (Edited) Business income tax rates start at 15% for those with $50,000 or less in profits. Well DUH! LOL. Along with Japan, the United States has the highest corporate tax rates in the world. Then we wonder why businesses aren't hiring or expanding. Supply-side economics in "socialist" Sweden: Sweden Announces Income Tax Cuts to Boost Jobs Last week the government announced a separate 16 billion kronor (US$2.4 billion) package aimed at improving the business climate, which would in turn help increase employment. That package included proposals to cut the corporate tax rate from 28% to 26.3%... ROTFLMAO.
#33. To: jwpegler (#28) Along with Japan, the United States has the highest corporate tax rates in the world.
Replies to Comment # 33. People who don't know anything about finances often confuse marginal tax rates and average taxes paid. You claim to be a Wall Street Vice President and you don't know this. I don't think so. School teacher is more likely. The marginal tax RATE is the percentage of of earnings that one would pay on the last dollar earned. It is an undisputed fact, that the U.S and Japan have the highest corporate tax rates in the world. Earnings are sales minus expenses. Earnings can be positive (a profit) or negative (a loss). A company might have sales of $1 million but expenses of $1.2 million so they have a loss and don't pay any income taxes. The government's tax system is more complicated than this and features a complex set of ways to reduce taxable earnings. Some corporations might have positive earnings but still pay few taxes because of the dedications. The tax treatment is very uneven across industries. Almost every conservative would trade these deductions for lower margin rates. Many large corporations have offices in more than one country. Of course, they are going to take advantage of every government rule in every country to shift their earnings away from high tax countries to low tax countries. All the complex rules force businesses to spend an extraordinary amount of money just to figure out what there taxes are. The system is broken. The economy is evidence of it.
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