The maxim – Tax Cuts Spur Investment. Give the small business owner a tax cut and s/he will invest it in their business.

The evidence offered is large number aggregation. Truths without much specificity. The claim cannot be supported by close examination of any longitudinal data covering a set of businesses or investors showing that the money was used to add jobs to an existing business or create jobs in a new business.

Suppose you are a millionaire, the tax cut you will receive under McCain is $12,000. What do you do with this money?

The econocaste says that you will use it to expand or start your business, thereby increasing jobs. Dear Mr K-streeter, how many Joe the plumbers will you hire for $12,000? Dear Joe, can you work for $12,000?

What I see happen among those millionaires and webionaires I know, is that money would be spent at restaurants, oh and sales of assets to take advantage of the write-off. This means that at best capital would leave the asset pool, rather than remain for manager’s use.

—–

do you save food for tomorrow ,for next year .. how hungry are you … do you breathe slowly to preserve the your air .. if you are dying do you eat your last Jell-O ..

The truism for decades has been that “competition is good.” Full stop. We teach it, we preach it, we reward it. Full stop.

toxic, the taste of bile, rewarding your guile

Sovereign funds are accepted loudly by the econocaste. The economics professor will point out their value, mark you wrong for trying to be “fair”. What he calls protectionist. Legislatures are lobbied to permit Sovereign funds to invest in the Wall Street firm of their choice. Journal articles point out that we are being childish not to accept the Sovereign fund money. They even tell us this is our own money come home. Nothing to fear here.

SWFs are
government-owned investment funds, set up for a variety of macroeconomic purposes. —IMF Feb 2008

So, if the US were to invest in its own companies as a Sovereign Fund, why wouldn’t that be okay? Instead, we hear from WSJ, “The Economist,” CATO, etc., that the TARP is the end of the world. Maybe it is a change to their world, but certainly not of the world. Not your world, nor mine. I have always lived in the world that knows all economies depend on external air to live.

Maybe they would be happier if we named their pacifier the US Sovereign Fund, instead of TARP