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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (17088)	2/10/2004 3:58:22 PM
From: gpowell	Read Replies (2) \| Respond to of 306849

don't hear too much in the way of coherent facts from your posts either. Then you demonstrate your lack of economics training. Why, given your ignorance on the subject, are you commenting on these issues and wasting everyone’s time? You do what the government does- take figures such as GDP which are obviously wrong and make your case with that. I am giving you the standard economic arguments in favor of removing constraints to trade – whether the trade is between New York and San Francisco, or New York and Tokyo. Income taxes have been declining in real terms since this recession ended. Forget what Labor's share of national income is, just look at the cold hard facts of how much money is coming in since the 00 peak. Do you really think in term of taxes as money coming in? I suppose personal income is wasted on frivolous consumption. National income has been rising, thus tax receipts will rise as well, commensurate with the new tax structure: economagic.com We're down about 30% if I recall correctly (between 20-30%) and we are declining every month. Are you making things up again lizzie? Receipts are down about 6%,YOY, in the early part of 2003, dropping to 0.5% lower in the latter part of the year, with indications of a positive increase in late 2003. Just as one would expect given the return to corporate profits and an increase in hours worked. But corporate profits are rising!!! Profits are highly volatile. In 2003, we saw mostly a recovery of inventory and greater utilization of productive capacity. These profits have to be put to work before we see a significant rise in job creation, and there is no guarantee that those jobs will be in the US, initially. The problem is corporations contribute very little to the tax rolls. There is no problem. in absolute terms it is tough to make a case that the federal budget is BETTER off with outsourcing. You are wrong. If offshoring results in higher return on capital then receipts should grow, all else being equal. However, if US workers decide they can sit back and wait for their government to erect trade barriers then we expect a steep loss of jobs and capital flows leaving the country.