Good for investors, good for consumers, good for businesses
Sen. John Corzine was agitated in his disagreement on that. He's a Democrat to be sure, but also one of the chief investment bankers in the country in his previous life.
I haven't yet heard an analysis of his remarks, but he claims the opposite:
1) Corps will immediately be incented to issue dividends, to bolster their share price, rather than retain earnings for investment. This works short-term, but deteriorates future profitability and job-creation, the opposite of the desired effect.
2) Relative attractiveness of equities for income purposes will happen immediately, resulting in move away from bonds, which will increase interest rates. With the huge and growing debt in public and private hands, this would be damaging.
3) The GOP plan runs 3 X the cost of the Demo plan, without margin for error. If the above effects take place and business development spirals downward instead of upward, the deficit gets out of control.
It all a question of job-creation, agreed, and gov't needs to get out of the way. The question is whether getting out of the way of the wealthy will create more jobs than focusing on the low and middle class workers. |
