2026 TeoTwawKi ... 2032 Darkest Interregnum Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum

GLD 374.22

-0.2%

Nov 21 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: carranza2 who wrote (98039)	1/19/2013 10:02:27 AM
From: studdog	2 Recommendations Read Replies (3) of 217973

This is a very flawed analysis. On one hand the tax increases are decried as a drag on the economy and on the other there is lamentation over the pitiful growth over the last 13 years, largely blaming the growth of government debt to GDP. Well, the tax burden over the last 13 years was the lowest in modern times and the growth in debt to GDP was as much a result of decrease in tax revenue as it was in spending. Despite this low tax rate we did not have the increase in tax revenue that the laughable Laffer curve would predict. There will be a reduction in spending enacted over the next year so that the assumption that public debt to GDP will rise inexorably into the future is spurious. Increasing taxes at the margin will not affect spending nearly a much as at the lower margins and I believe it is ludicrous to predict that top earners will just give up and not work as hard because of a 5% rise in taxes. I am in the 1.0% and I am already figuring out ways to increase my productivity, and, despite myself, starting to plan to actually work a bit more over the next year to make up for any decrease in income. I do agree with the long term nature on the deleveraging that is going on, but disagree that we have not made any progress. The total cost of servicing private debt is at the lowest level in 2 decades. We have exchanged to some degree private debt for public debt, but unwinding the Feds balance sheet will be much much easier than the unwinding of our collective balance sheets has been over the last 5 years. I am actually quite surprised at how fast we have been able to chip away at private debt and expected us to be where we are now in another 5 years. I wouldn't base any long term investment strategies on this article. studdog

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next