News U.S. Economy Faltering; Is a recession or a depression ahead? (Read 15727 times)

  • Insane teacher
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did you all never have a trickle-down econ stage?
brian chemicals
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Yeah, the ones that deserve to be taxes the most are the rich, of course. Taxing the poor more than the rich is kind of unthinkable in the Netherlands. As far as I know, no serious political party advocates this, not even the most right-wing ones.

From what I understand, part of the reason the government tends not to tax the rich as much is because they tend to own businesses, which is beneficial for the economy. This is why the Hilton family gets taxed as little as 5% on dividend income when a normal person would be getting over 15%.

QUICK! Everybody panic! Sell all your stock and cash out your bank accounts!


Now's the time to be bearish. If we are in for a recession, going short on specific stocks would be pretty kickass right about now. If you knew enough about futures, you could probably make an assload of money, but it'd be harder since futures deal with huge sums of cash/goods.
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hmm while still in risky grounds the stocks are starting to even out once more, and europe/asia stocks are rising again.
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Yeah, the ones that deserve to be taxes the most are the rich, of course. Taxing the poor more than the rich is kind of unthinkable in the Netherlands. As far as I know, no serious political party advocates this, not even the most right-wing ones.

The rich will flee to tax paradises such as Monacoo if they're taxed "too hard" so it's better for the country to have low tax on the really rich because even the minimal tax will give a lot of money. In Sweden we tax the ones with higher income a bit more but we've reduced that tax and even removed a "rich people tax" to keep the rich in the country. It might not fit in you ideology but it's probably the best way to go.
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The economy is probably going to get a sizable boost thanks to the republicans (who always do this kind of thing before they come crashing down).

I wish we'd get refunds more often as it's a pretty smart move.  Most people (I'm talking 99% of all tax paying Americans) instantly spend their refund plus a little bit more so it's not like the money is wasted.
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are you jokeposting

checks are such a dumb idea.

they even did a futurama episode on this remember!!!
brian chemicals
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The money goes right back to the economy.  Nobody saves their tax refunds.

Shit, I'm probably going to buy 600 cups of coffee.
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i wish i made 3,000 a year

does my graduation money count

That’s right, you have the young gaming with the old(er), white people gaming with black people, men and women, Asian countries gaming with the EU, North Americans gaming with South Americans. Much like world sporting events like the Wolrd Cup, or the Olympics will bring together different nations in friendly competition, (note the recent Asian Cup; Iraq vs. Saudi Arabia, no violence there) we come together. The differences being, we are not divided by our nationalities and we do it 24-7, and on a personal level.

We are a community without borders and without colours, the spirit and diversity of the gaming community is one that should be looked up to, a spirit and diversity other groups should strive toward.
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The money goes right back to the economy.  Nobody saves their tax refunds.

This. Almost anything will stimulate the economy, except for doing absolutely nothing with it. Even putting it into a savings account would help the economy (although much less than just going out and spending it) because banks lend that money to other firms, which use the money to finance their projects. Granted, the government wants people to just go out and spend the money right away, but almost everything you do will have a beneficial effect. I'm still not sure if it'll boost the economy that much though. My guess is, it'll help out a bit, but not enough to make a drastic change.

I plan on buying into an Index Fund over the summer so I have to save $3,000 by then. When I heard this news, it made me pretty happy cause it's a minimum of 10% of what I need to save. Oh, and although I'm putting this money away into a mutual fund, it's still helping the economy because the mutual fund goes out and buys shares of stock. There's very little you can do (short of keeping the money in your pocket)
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the problem is 600 bucks does fuckall for the economy. it also weakens the government's fiscal position pretty much for very small benefit.

so basically yeah:

Quote
I'm still not sure if it'll boost the economy

it pretty much won't, by all the current political and economic thought I've read.

edit: the reason is because people will use this money to pay bills not to buy ipods or whatever.

edit edit: I just read this hahahhaahha

Quote
As you may recall, the checks were part of a major tax-cutting effort in the first year of the Bush administration.

Part of those tax cuts was a reduction in rates, including a drop from 15 percent to 10 percent on the first $6,000 of income for singles and $12,000 for married taxpayers filing jointly.

That equaled a cut of $300 and $600. But instead of implementing the cut in the tax tables that accompanied the 2001 1040s in April 2002, Congress and the Bush administration sent out the checks early, then delayed changing the rates until the tables in the April 2003 1040s.

The forms for the 2001 tax year could have included a line at the end of the 1040 for taxpayers to take the amount of the check and reduce their refunds - or add the figure to the amount owed. But the IRS didn't do that, wanting to reduce the number of calculations necessary.

so a tax cut that was going to happen.

edit edit edit: here's cool link

http://www.foxbusiness.com/markets/economy/article/winners-losers-stimulus-package_450854_3.html

Quote
“Most analysts agree that the 2001 rebate stimulated the economy,” CBO said, “although there is some debate about the magnitude of the effect.” Households, according to one study, spent between 20% and 40% of their rebate amount in the quarter in which the rebate was received.

Other researchers, using credit card data, found spending increased by about 40% of the rebate on average. The study also found that consumption rose the most for consumers who had credit problems but those with strong credit responded to the rebate by paying down their debt.

so basically the poor will go ahead and blow their money in short term shit and then be FURTHER in debt where the others will pay debt, and nobody wins w00t.
Last Edit: January 25, 2008, 02:34:20 pm by dangerousned
brian chemicals
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so basically the poor will go ahead and blow their money in short term shit and then be FURTHER in debt where the others will pay debt, and nobody wins w00t.

That doesn't matter to the government. They don't care how you spend it or whether you get yourself further into debt, as long as you do spend it and stimulate the economy. The purpose of the checks isn't to make life easier for the poor but to have them spend that money to boost the economy.
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...

did you read the quote?

first off only the poor are the ones who will probably spend it by the quarter, and then that was 20 to 40% of the rebate. then these poor people go into debt, which helps the economy but at a negligible amount (unless it's incredible debt which is ethically problematic and also just a fucked up way to solve the economy) the middle and upper classes will SAVE the money, which does not help the economy by any measure since it's not getting spent.

debt can also long term hurt an economy because of bankruptcy etc. this is not good fiscal policy, it will have little effect on the US economy, and it's essentially the Bush presidency attempting to half bribe/half convince the American people that they "at least tried".
brian chemicals
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Hey Steel/anyone else who would know: Do you know when we're getting this money? When are we getting it and what is the procedure to get it?
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Well so that's why peso here has been increasing lately..
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Hey Steel/anyone else who would know: Do you know when we're getting this money? When are we getting it and what is the procedure to get it?

US Treasury Bonds, so giving more money to japan/china.
brian chemicals
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...

did you read the quote?

first off only the poor are the ones who will probably spend it by the quarter, and then that was 20 to 40% of the rebate. then these poor people go into debt, which helps the economy but at a negligible amount (unless it's incredible debt which is ethically problematic and also just a fucked up way to solve the economy) the middle and upper classes will SAVE the money, which does not help the economy by any measure since it's not getting spent.

debt can also long term hurt an economy because of bankruptcy etc. this is not good fiscal policy, it will have little effect on the US economy, and it's essentially the Bush presidency attempting to half bribe/half convince the American people that they "at least tried".

I get what you're saying, but my point was that the government's only agenda is to stimulate the economy. It might not work, but that's not the point. Really though, $300 dollars can't cause one individual that much damage unless they happen to be a complete moron.

Hey Steel/anyone else who would know: Do you know when we're getting this money? When are we getting it and what is the procedure to get it?

They said they'd start rolling out in May and they should be done by June/early July. I'm assuming it's going to be a mailed check, so there really isn't any procedure you have to do (other than maybe having to file your taxes).
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I get what you're saying, but my point was that the government's only agenda is to stimulate the economy. It might not work, but that's not the point. Really though, $300 dollars can't cause one individual that much damage unless they happen to be a complete moron.
You could buy a Wii and Super Smash Bros Brawl, and then bask in it's entertainment value.

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You could buy a Wii and Super Smash Bros Brawl, and then bask in it's entertainment value.

lol. That's exactly what I'd do had I not already paid both of them off.
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I get what you're saying, but my point was that the government's only agenda is to stimulate the economy. It might not work, but that's not the point. Really though, $300 dollars can't cause one individual that much damage unless they happen to be a complete moron.

well uh, the quote from the article link says you are wrong; people got bad credit. part of it is because the poor tend to not have the most fiscal sense to begin with so they might not even think to pay off a debt with it or even know how, and then the poor are marketed to, and then there are various upkeep issues and basically this won't work at all and they shouldn't do it.

I mean, free money is money, but it's a dumb idea entirely.
brian chemicals
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This is only good for me as I am a canadian thus things i buy online are cheaper...
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