The Fiscal Cliff and the Grand Bargain

Charles Hugh Smith makes a few good points. I liked his books and sometimes enjoy his blog. Although I don't agree with him on everything it is nice to get a contrarian view. I am a little sick of all the news coverage about how are we are gonna fix the fiscal cliff. The fiscal cliff just means that once we stop the deficit induced growth then the economy will tank in order to get back to its natural level...which is about $1 trillion lower than the calculated statistical inference that is reported. Yet we continue to reschedule growth from the future in order to have a good GDP # for the qtr/year to keep the mob happy. We're just trading our future for the here and now.

http://www.oftwominds.com/blognov12/fiscal-cliff11-12.html. I only quoted part of his posting but it is a good read in its entirety.

 

the top .5% didn't uphold their part of the bargain.

the dude from Costco sums it up pretty well. so does Warren Buffett

our economy is the result of people investing money and expecting returns in a quarter. no one cares about the long game anymore

 

Then why punish LTCGs?

 

In my view, I don't think passive investing such as buying stocks on an exchange should qualify for privileged tax treatment. I think the behavior you are trying to incentivize is investing in start ups and small businesses. The argument for the preferential treatment was that you have a small business owner that's had a business for 40 years and wants to get out, but takes a huge tax hit if he does. The way it is now though, seems to be a prop to the stock market and just encourages rest seeking behavior.

 

What part of the bargain where the top .5% pay 30% of all taxes means that the top .5% hasn't held up their part of the bargain? I don't remember signing anything that said, "Hey the harder you work, the more and more as a percentage we will take from you."

 

That is evidently the "unspoken rule"...the implied convenant.

 

Huh? How do you think businesses get capital? If you discourage my investing in business (yes, that is what buying a share of stock is), how do you expect the economy to grow?

 

http://www.foxnews.com/opinion/2012...iscal-cliff-and-taxing-rich/?intcmp=obnetwork

interesting take on taxing the rich, they'll just find other loopholes. Romney proposed changing or limiting the loopholes.

 

when you exploit the workers, the consumers, to get maximized profits, and send jobs out of the country, you cease to have consumers with money to buy your **** at some point

 

You lost me at exploit the workers...last I checked slavery was abolished in the US. And exactly how would one exploit consumers? Force them to buy their products? How does that work?

 

Pay tention! In the liberal world everyone is a victim.

 

Got it, thanks.

I'm gonna look into this exploiting consumers thing. My business is down in 2012, so anything I can do to force some more customers to buy from me would be a big help.

 

Warren buffet even now as he goes on TV shows saying, "tax me more!", is in court fighting a $1 billion back taxes that he owes currently through his company.

Don't give me the company and he are different crap. He's another hypocrite liberal (which is about as redundant as you can possibly be).

Only in the united states of idiocracy would .5% paying over 30% of the taxes be considered not holding up their end of the bargain. I guess they missed the part where they were supposed to drop their trousers and just bend over.

 

Warren Buffet is the embodiment of hypocrisy. It is disgraceful how the liberals trot him in front of the media to espouse the liberal talking points. Berkshire-Hathaway was nothing but a glorified hedge fund and corporate raider in the beginning.
http://www.nypost.com/p/news/opinion/opedcolumnists/saint_warren_dark_side_mhMyAHUqp3nn0jR0xdtGmI

 

It won't be soon before Atlas Shrugs.

 

the workers are the consumers.

Walmart, for example, pays their workers peanuts and then shows them how to apply for government assistance so they can survive.

 

It will be interesting if they cut middle class welfare benefits.

Do y'all think they will cut or reduce the home mortgage interest deduction?

 

How much should a shelf stocker make? I bet they're compensated more than most unskilled laborers around the world. I think most people have confused high living with the cost of living.

 

The interest deduction will go away. At some point, there are going to be a lot of cuts that won't be popular, but will have to be made. I think the mortgage interest deduction will be among the first.

 

That's where I take issue too. Nothing is stopping someone from bettering their situation, and making more money. If they're pissed off because they feel like they should make more and aren't being paid more, then quit and find another job. Or better yet, start a business.