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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Peter Dierks who wrote (668034)	1/10/2005 10:54:36 PM
From: gerard mangiardi	Read Replies (1) \| Respond to of 769670

Seem to remember in eco 101 that savings = investment. Guess your text books said something different.

To: Peter Dierks who wrote (668034)	1/11/2005 1:12:13 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 769670

[to the extent any earning is proportionally saved, it (en masse) contributes to national savings --- which most CERTAINLY impacts capital formation!] "Yes it does. It causes a lack of earnings growth and thus reduces the gross market value. Causing people to be less well off. Savings and capital formation are so dissimilar as to be nearly opposite." WRONG! Increased savings may --- in the short run --- decrease investments... but in the mid-to-long term it positively impacts capital investments (because, by definition, it is a component of capital formation.) "Capital gains is not income" [Why the Hell NOT? My capital gains are earned with my mental labor... the fruit of much work selecting and allocating investments. Why should one form of labor be favored by the government over any other form of labor? The money doesn't grow itself... like any gardner, it requires constant attention and effort to succeed!] "should not be taxed at all." [Like I said: the GOVERNMENT shouldn't pick whose labor to reward, and whose to penalize.] "People who generate capital gains through their sweat and mental efforts are different than Susie and Joe Mutual fund buyers. It is different than selling, designing, practicing a profession or other income activities." Re: 'people are different': DUH!!!!!!!!! But you STILL have DODGED my question --- why should the GOVERNMENT pick whose labor to reward, and whose to penalize???????????? And, I REPEAT: mental effort is MENTAL EFFORT! (Whether you are a pension manager, hedge fund operator, private investor... or designer of buildings.... "Capital formation causes job growth. Saving causes job loss." As I observed above: YOU ARE INCORRECT. "The two should be taxed according to the social good they are related to." Commie, eh? Enabler of Big Government, eh?