Fact Finder wrote:yeah, but give the middle class a tax cut and they SPEND it....and most probably can;'t afford to 'save' it.
Think about what you're saying and why. When you say "can't afford to save it" I take it you mean that they are already overextended and can use any dime that they can get their hands on to cover their bills.
No, I am not saying that. Of course that is ONE thing that some people have to worry about. But, for me, for example, the ONLY bills I have are the house payment and utilities...NO balance left on credit cards and not even a car loan. But, I can GUARANTEE you that if I get a $5000 -10,000 tax cut, it will be spent on home improvements...new furnace/central air, and flooring for the upstairs...and other things.
Do I save? Of course I do...probably more then most people with my income. So what? There are still daily needs that could be made easier, life and home improvements to be made. THAT is the middle class.
If the rich keep that money they generally use it as a means to make more money and that usually means by way of investments. Most rich that I know would invest most of this money and that means invested in stocks which are Companies. Companies use the invested cash to keep growing which means hiring and expansions or acqasitions.
I was laid off last June. The company I worked for based their spending on a Dow of 10,000. So, they cut expenses, cut salaries, and then cut employees. As long as there is so much flux in the markets, companies (especially those in the financial industry) are going to be reluctant to restore those cuts. Consumer spending increases demand for goods and services, which increases corporate profit, which means they can spend more on salaries and benefits. THAT is what matters...much more then the stock price...Well, unless you are an executive and you have lots of stock options.
Figuring this fictional rich guy already owns a yacht, lets assume that he upsizes, or redecorates the thing. What about how much it cost him to employ deck hands, pay docking fees, and god only knows how much fuel he might buy which is taxed enough already.
LOL. Please, this convinces me of nothing. If Bill Gates, or Trump, or whoever, wants a yacht, he can afford to be an admiral....without a tax cut.
Does it help the economy? Sure...but it has NOTHING to do with a tax cut.
I think you've somehow missed what has just happened here over the last couple of decades. People were cheering that people were buying houses, in fact our Government mandated (in some instances)that banks lend a ton of people money they couldn't afford to buy a house. What we've learned is that that don't work. If consumers don't have money they shouldn't be buying things like Flat Screens, Big Houses and meals every Friday at Outback on a CCard.
Of course I didn't 'miss it'. Crooks were making bad loans and caused the entire financial industry to collapse because of it. That does NOT change the fact that NOBODY was making the argument that housing sales falling were a good thing.
