Stock Buybacks: "the Biggest Scam Bankrupting Business and the Middle Class?"

[EdwardBaiamonte]

4) You might note I said if just 10% of Americans would consider buying American goods.... I never said, or insinuated we shut our borders.

if it made sense we could simply pass a law baning 10% of imports. Do you know why both liberals and conservatives believe in free trade?

Obvious troll is obvious

if it made sense we could simply pass a law baning 10% of imports. Do you know why both liberals and conservatives believe in free trade?

 

[EdwardBaiamonte]

do I understand what, dopey liberal. How will you learn if you are afraid to try?

"Supply-side economics is a school of macroeconomics that argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and services as well as invest in capital."
Supply-side economics - Wikipedia the free encyclopedia

good dear you looked up a definition, and???????????????

 

[georgephillip]

good dear you looked up a definition, and???????????????

Low taxes = low wages.
Now do we understand why it's easier to be generous with the government's money?

 

[EdwardBaiamonte]

good dear you looked up a definition, and???????????????

Low taxes = low wages.
Now do we understand why it's easier to be generous with the government's money?

why would low tax mean low wages?? If a business has lower taxes it would have more money for higher wages and lower prices.

Do you understand your ABC's now??

 

[georgephillip]

why would low tax mean low wages?? If a business has lower taxes it would have more money for higher wages and lower prices.

Why would you give government your money when you could give it to your employees?

Are you still practicing Voodoo?

 

[EdwardBaiamonte]

Why would you give government your money when you could give it to your employees?

who said I would??????? Slow?????

 

[CultureCitizen]

good dear you looked up a definition, and???????????????

Low taxes = low wages.
Now do we understand why it's easier to be generous with the government's money?

why would low tax mean low wages?? If a business has lower taxes it would have more money for higher wages and lower prices.

Do you understand your ABC's now??

True, but lowering taxes will not in fact rise wages , as they are ruled by the laws of supply and demand also.
Supply side policies only work if the country has the ability to increase its exports through inovation or import substitution.

In the current situation of the US supply side would not work ZERP and QE has effectively created a stock bubble which has to burst.

I would agree that supply side policy works but only under certain conditions.

 

[georgephillip]

n the current situation of the US supply side would not work ZERP and QE has effectively created a stock bubble which has to burst.

Do you have an opinion on when that might happen?

 

[CultureCitizen]

n the current situation of the US supply side would not work ZERP and QE has effectively created a stock bubble which has to burst.

Do you have an opinion on when that might happen?

What usually happens during stock crashes : some people will loose their money ( investors, people with pensions) , some companies will go bankrupt, unemployment will rise, and investments will stagnate for a while.
Now how serious will the crisis be? I am truly unsure. In part QE was done to capitalize banks and in part it was supposed to be used to stimulate the economy ( which has been quite lame IMHO).

I am not woried about the crash itself , but about the combination of stock crash and extremely leveraged shale oil companies. Luckily banks have higher reserves now which should help reduce the risk of another bailout.

 

[EdwardBaiamonte]

True, but lowering taxes will not in fact rise wages , as they are ruled by the laws of supply and demand also.
.

dear, the law of supply and demand is exactly why lowering corporate taxes will result in higher wages and/or lower prices .

Do you understand your ABC's now??

 

[EdwardBaiamonte]

Supply side policies only work if the country has the ability to increase its exports through inovation or import substitution.
.

too 100% stupid since innovation has been constant since the stone age. And, it makes not difference whether increased supply is consumed in Texas or China.

Liberalism is based in pure ignorance.

 

[CultureCitizen]

Supply side policies only work if the country has the ability to increase its exports through inovation or import substitution.
.

too 100% stupid since innovation has been constant since the stone age. And, it makes not difference whether increased supply is consumed in Texas or China.

Liberalism is based in pure ignorance.

Baiamonte , you are so naive I almost feel pity for you.
The US situation is unlikely to improve as long as its trade deficit continues to be so large. Innovation notwithstanding.
True , the US invented the PC and the IPAD , but what good is that if all the production is made in China?
Oh yes, cheaper goods. But how is that good if people have no employments that allow them to buy such goods ?

 

[CultureCitizen]

True, but lowering taxes will not in fact rise wages , as they are ruled by the laws of supply and demand also.
.

dear, the law of supply and demand is exactly why lowering corporate taxes will result in higher wages and/or lower prices .

Do you understand your ABC's now??

Wrong.
If I have a business and taxes are lower, well fine, the company's income will increase.
What would compell me to increase the wages therefore reducing the company's income?
The company will be better off by using such income acquiring capital goods. That is , unless I have a shortage of labour.

You don't seem able to grasp the ABC of economics.

 

[georgephillip]

I am not woried about the crash itself , but about the combination of stock crash and extremely leveraged shale oil companies.

You're the first commentator I've read who's used the phrase "extremely leveraged shale oil companies," Could you explain how this would make the next Great Recession even worse??

 

[CultureCitizen]

I am not woried about the crash itself , but about the combination of stock crash and extremely leveraged shale oil companies.

You're the first commentator I've read who's used the phrase "extremely leveraged shale oil companies," Could you explain how this would make the next Great Recession even worse??

Because of derivatives have a multiplier effect. Multiple stake holders might be hedging against the same event. If an event with a particularly high concentration of bets is triggered, there could be a liquidity crisis, which could put many business at risk.

 

[georgephillip]

Because of derivatives have a multiplier effect. Multiple stake holders might be hedging against the same event. If an event with a particularly high concentration of bets is triggered, there could be a liquidity crisis, which could put many business at risk.

I'm guessing there are many highly leveraged shale oil producers in this situation?

 

[EdwardBaiamonte]

What would compell me to increase the wages.

dear, a liberal is a liberal because he lacks the IQ to be a conservative. When taxes go down in an industry it has more money for wages. If one company raises its wages and the others don't the one that did can hire away the best workers.
The pure beauty and glory of Republican capitalism is that it forces you to provide the highest wages possible!

 

[EdwardBaiamonte]

extremely leveraged shale oil companies.

of course thats utterly stupid and liberal. Oil gas wind solar coal are produced all over the very globalized world while shale oil is a tiny part made up mostly of many small companies in the USA who just experienced a huge shock when prices dropped by 50% with no issues whatsoever.

 

[EdwardBaiamonte]

The US situation is unlikely to improve as long as its trade deficit continues to be so large. Innovation notwithstanding.

dear, there is no deficit without libcommie govt interference. If you spend $100 at Walmart the Chinese have $100 US dollars which are only good for spending, you guessed it, in the US. So no deficit is posible if you have Republican capitalism.

Econ 101 class one day one minute one. See why we have to be positive that liberalism is based in pure ignorance.

 

[CultureCitizen]

dear, there is no deficit without libcommie govt interference. If you spend $100 at Walmart the Chinese have $100 US dollars which are only good for spending, you guessed it, in the US. So no deficit is posible if you have Republican capitalism.

Econ 101 class one day one minute one. See why we have to be positive that liberalism is based in pure ignorance.

So , the Chinese have a surplus, the US has a deficit, and to cover the deficit the US asks the Chinese for a loan, which later translates into a gigantic IOU.
The only good thing about this arrangement is that the US has a really low interest rate.