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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: surfbaron who wrote (4691)	8/16/2002 3:41:12 PM
From: Jim Willie CB	Read Replies (2) \| Respond to of 89467

the early 1980's tax rate reductions were so so large they made a fine-tune analysis of elasticity difficult as hell but you read it right regarding the coincident SocSec tax hike taxes are taxes, all paid out of our pockets where they are categorized in simply accounting nuance regardless, the tax revenues increased monstrously in reaction since the rate reduction was so large, I think it necessary to look farther out as you do in order to monitor the effect coupled with gutty BushSr govt size/spending cuts (none of which he is given much credit for), and some meaningful tax and business reform, the end result was a much stronger tax revenue income stream Clinton largely took credit for the setup from the previous decade of the tax cut/ spending cut tagteam setting Clinton's signature imprint will be seen with unwinding the disastrous Strong Dollar policy and the New Corporate Fraud era together these two effects will bring us ENDLESS RECESSION BushSr failed to address the 1990-91 painful time within the economy from the GulfWar oil price shock so he was ousted as insensitive and out-of-touch WHICH HE WAS in my view, serving as CIA Head is poor preparation for reading the pulse of the American public and JoeSixPack in fact, CIA Head only allowed him to be more intimately informed about AirAmerica drug running which financed independent covert operations for the so-called benefit of American interests the numerous other tax reduction examples from Kennedy to Johnson to Nixon to Clinton all show the same paradox this points out a central criticism I have for economist/politician analyses they assume the world remains static as their policy change works thru the system raise tax rate ==> raised tax revenues (WRONG, NEVER HAPPENS) since the higher tax rate discourages new business creation and additional business projects it is an elastic concept a simple example highlights this elusive concept if a city imposes a hefty outrageous $20 toll charge for crossing a certain key bridge, then six months later the bridge will be used far far less can economists and city planners expect the same traffic? can they therefore make any projections about revenue intake? of course not yet economists engage in this incompetent "static projection" practice constantly they make my statistician professsion look bad when tax rates were lowered, tax revenues rose small changes are far easier to study, since they elicit a response more quickly the Reagan cuts invited a slower response I believe the Reagan tax cuts plus BushSr govt reductions laid the groundwork for much of the 1990 decade of economic expansion but we must give some credit to where it is due the FedReserve sponsored the Gold Carry Trade since 1994-95 that depleted the gold reserves, leasing them to criminals, who sold them, and with proceeds bought USTBonds, thus bringing years of declining interest rates and rising USdollar, whereby the stronger dollar made cheap the escalating imports, whereby the reduced interest rates kept the corporation borrowing costs on a downtrend the interest rate downtrend probably is the biggest single factor in the 1990 decade of so-called prosperity it was not tax reduction, since Clinton reversed rates back upward but the lower interest rate trend came with a HEAVY PRICE THE MULTI-YEAR GOLD SHORT POSITION the only way out is for the USTreasury to deliver another 10-15% of its supplies for bailing out JPMorgo, Citi, GSux, et al economists are simply wretched FedReserve accomplices are criminals now we face a decade of misery watch the USDollar, which is the key its decline started the Major Stock Index tankjob its resumption will continue the tankjob / jim