Saturday, January 24, 2009

Obama and Repulicans on Stimulus

Obama Fleshes Out Further Details of Stimulus Plan

I am getting rather frustrated with this stimulus package. There are far too many business tax cuts. Think about this. If I am a business and consumers have money to buy 100 widgets and I make 10 dollars profit on those widgets, if I am taxed less on profit will I now build 110 widgets. NO!! I still can only sell 100 widgets. Lower taxes on businesses do not lead to more production when we already have too much capacity. The problem is demand.

The stimulus package should have only items that create jobs and put dollars in the demand side, the consumer. I am absolutely convinced that republican dogma is clouding people's thinking and the president is not standing up to this muddled thinking.

2 comments:

Grace Explosion said...

Too much capacity?? What planet are you from?? Do you see us competing well against China?? Do you see us producing energy independence??

Do you not realize that taxation cuts into profits and thus stifles innovation?? It takes PROFIT to get out there and create new products and new technologies. The more PROFIT that is available... the more MONEY will be invested into PRODUCING profit.

Taxes choke production. Taxes choke innovation.

There must be opportunity for PROFIT in order for American ingenuity to RISE.

Do you really believe we are wiser than other nations??

American ingenuity is produced by a profit motive. Increase profits and then profit shall be the mother of invention.

PROFITS are needed in greater degree. Decrease expenses and the profits will increase. Innovation will increase. Wages will increase. Demand will thus increase.

Please, just because you are not called to be an entrepreneur - or even perhaps an inventor - do not handicap those of us who are.

Profit is what motivates innovation and is the author of ingenuity and the mother of invention.

Profit equals reward.

Do you not see?? Can you stop trying to control the entrepreneurs and inventors among your group?? Because you are not one - doesn't mean we are not needed.

We create the wealth of a nation.

Let us be. Take the shackles from us - or PROFIT shall be our motive -- and we shall cast your shackles far from us.

PROFIT is the reason for war and revolution.

For what is PROFIT, really??

Freedom.

passthebread said...

yes. Too much capacity. This is why for example Aluminum prices have fallen from 3300/lb to 1400/lb. The cause of prices on commodity exchanges are always inventory levels. Inventories are up because the commodity producers have too much capacity. So the result is the commodity have to cut capacity and start lay offs which lowers demand and means cut more capacity....etc.