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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: combjelly who wrote (685034)	11/15/2012 9:31:28 PM
From: i-node	Respond to of 1577029

>> But that doesn't create demand, people with money in their pockets create demand. Of course investment is needed. No one could argue otherwise. The point I was making and that you conveniently looked past, is that investment creates demand. And I gave numerous examples where that is the case. But these certainly aren't the ONLY examples. An auto manufacturer investing in the design of a new vehicle creates demand. Frito-Lay creating a new kind of snack food creates demand. All of these things are investment and require a functioning capital market. AAPL is the most obvious example, of course -- because their decision to invest (and stockholders who decided to invest in AAPL shares) created an entirely new market. There are hundreds or thousands of examples. Consider the market that has developed in the last 10 years for so-called "energy drinks". Had someone not had the capital available to invest in plant and equipment that market would never have developed. Had some fool decided to confiscate those investors' money through higher taxes, that might well have never developed. I'm sure it is a foreign concept to someone who has never had the responsibility of running a business. But the first thing a business has to do is assemble the capital to do what it wants to do. And planning for needed capital requirements is something every business has to do. If you tax capital at higher rates there is (a) less available, period, and (b) even a small increase in marginal rates can cause substantial fluctuations in the risk profiles that investors are willing to pursue. The less capital you have the less demand you can create. >> Investment isn't the problem. This is a really dumb remark. It isn't like there is some magic number below which investment becomes a problem. The more investment capital that is available in the market, and the lower the tax rates on investment gains, the more risk investors are willing to take. The greater the chance the next iPad market will be produced. This really isn't that complicated.