The Rabbi
Diamond Member
- Sep 16, 2009
- 67,733
- 7,923
I caught about 2 minutes of Lawrence Kudlow on the radio the other day. He talked about "Kudlow's Law" which runs like this:
No business starts without capital. In order to do anything they must have capital first. So first they have capital, then they buy supplies/equipment, then they hire people and pay wages and then the workers spend those wages as consumers.
So consumer spending is the last link in the chain not the first.
Without capital none of that can happen.
When you tax capital you depress the ability of businesses to form and grow. We have had 2 capital gains tax increases over the last 6 years, with Obama pushing for more.
With the hit to capital it is no wonder business formation, and thus employment, is depressed, with wages stagnant.
Hard to argue with any of this, but I am sure the economic gurus on the left here will explain why that's wrong and why greedy capitalists can just reach into their mattresses for unlimited funds.
No business starts without capital. In order to do anything they must have capital first. So first they have capital, then they buy supplies/equipment, then they hire people and pay wages and then the workers spend those wages as consumers.
So consumer spending is the last link in the chain not the first.
Without capital none of that can happen.
When you tax capital you depress the ability of businesses to form and grow. We have had 2 capital gains tax increases over the last 6 years, with Obama pushing for more.
With the hit to capital it is no wonder business formation, and thus employment, is depressed, with wages stagnant.
Hard to argue with any of this, but I am sure the economic gurus on the left here will explain why that's wrong and why greedy capitalists can just reach into their mattresses for unlimited funds.