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Thread: Isn't the real elephant in the room the unemployment rate?

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    cameryxle is offline Senior Operative
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    Isn't the real elephant in the room the unemployment rate?

    It seems that with a continuous unemployment rate of 9-10% (that doesnt include those who are no longer looking (retraining/school) or those underemployed) the reason why we have such a revenue problem.

    Resalts of unemployments drain on the economy:

    -more people on food-stamps/unemployment/WICK and other family govt assistance programs
    -hundreds of thousands unemployed for at least 6 months to a year now.
    -less consumer spending (demand)-thus slowing of corperate and business profits.
    -Less people paying taxes thus lower revenue comming into the government ot pay the bills

    What steps have the conservatives in govt. taken to try to correct this underlying issue? What type of domestic and trade policies have they proposed to target this underlying issue?

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    They attempted to block as much job killing crap as they could. Cass Sunstein is making up for any blocked bills with over regulation killing business. Conservatives can't do anything about that. Obama care is still a huge question mark on what exactually it will cost those businesses not on Obama's most favored list. Can't do anything about that. Will Obama get corporate taxes raised through some deal cut with RINO's. Conservatives are still out numbered. EPA is going nuts with the court's help. There's not much to do about that. Need I go on?
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    Yeah, it's sad how the democrats still want to spend, borrow more money, punish business and raise taxes even as the unemployment rate soars higher while conservatives try to put the brakes on a speeding out of control Keynesian economic train.

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    Quote Originally Posted by cameryxle View Post
    It seems that with a continuous unemployment rate of 9-10% (that doesn't include those who are no longer looking (retraining/school) or those underemployed) the reason why we have such a revenue problem.

    Results of unemployment drain on the economy:

    -more people on food-stamps/unemployment/WICK and other family govt assistance programs
    -hundreds of thousands unemployed for at least 6 months to a year now.
    -less consumer spending (demand)-thus slowing of corperate and business profits.
    -Less people paying taxes thus lower revenue comming into the government ot pay the bills

    What steps have the conservatives in govt. taken to try to correct this underlying issue? What type of domestic and trade policies have they proposed to target this underlying issue?
    You manage once again to zero in on the problem. Yes siree it is the conservatives rather than those in charge who are quilty of our current situation.

    Nope no bias here.

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    If government spending were the answer...why isn't unemployment lower since we have had a 24% increase in domestic spending since O man took office?
    If government spending is the answer...why was unemployment 17.2% in 1939...after 7 years of government stimulus?

    The answer is NOT government...it is getting government OUT of the economy!
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    cameryxle is offline Senior Operative
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    Quote Originally Posted by Cam View Post
    If government spending were the answer...why isn't unemployment lower since we have had a 24% increase in domestic spending since O man took office?
    If government spending is the answer...why was unemployment 17.2% in 1939...after 7 years of government stimulus?

    The answer is NOT government...it is getting government OUT of the economy!
    Wasnt that what Reagan did? He raised taxes to cut he dificite while at the same time excellerated spending to excellerate economic growth.

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    Enviro-Nazi junk science regulation and Union greed will prevent any significant recovery and therefore any significant decrease in the unemployment rate.

    Confiscatory taxation will prevent any significant risk taking by those with resources, nullifying any tangible tax revenue gains that might have materialized from any change in the tax code.

    Cheap energy, a profitable environment for risk takers and access to natural resources coupled with market forces in labor and the retail market are the only path to prosperity. To glean enough employment and tax revenue to salvage our currency and the future opportunities for those who follow us we must stop demonizing industry, wealth and creative rugged individualism.

    We must become a people who treasure private property and personal responsibility again, the love of sloth and government dependence will never lead us to anywhere but ruin.
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    cameryxle is offline Senior Operative
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    Quote Originally Posted by RET423 View Post
    Enviro-Nazi junk science regulation and Union greed will prevent any significant recovery and therefore any significant decrease in the unemployment rate.

    Confiscatory taxation will prevent any significant risk taking by those with resources, nullifying any tangible tax revenue gains that might have materialized from any change in the tax code.

    Cheap energy, a profitable environment for risk takers and access to natural resources coupled with market forces in labor and the retail market are the only path to prosperity. To glean enough employment and tax revenue to salvage our currency and the future opportunities for those who follow us we must stop demonizing industry, wealth and creative rugged individualism.

    We must become a people who treasure private property and personal responsibility again, the love of sloth and government dependence will never lead us to anywhere but ruin.
    In the 1950's unions were a force at around 60% of the work force belonging to them, now only about 3% of teh workforce belong to unions so I dont see how they hae much relavency. (growth started as a result of many historical events one of wich was the triangle fire (NY). Triangle Shirtwaist Factory fire - Wikipedia, the free encyclopedia

    To your point about the other adverse areas nullifying any revenue gains from tax code adjustments; would you also agree that there should still be such adjustments as there would be some revenue increases from such adjustments, allthings being equal.

    Cheap energy involves trade agreement adjustments with many of our energy suppliers over seas. WOuld you agree we need to correct our trade policy imbalance with countries like China who charges tariffs on imports from the USA but we charge no tariffs in chinese imports.

    Without correcting middleclass unemployment (largest consumer pool), the lack of demand for goods and services will continue to strain corperate and buisness resources and expansion. Thus, continue the endless cycle of low employment->low demand goods and services->low corpeate and business expansion->corperation and business failures-> increasing unemployment-> excellerating over time until the system consumes itself and crashes.

    It will be interesting to see how we put the brakes on this trend. We won't be able to unless our govt policies start keeping the welfare of the american worker paramount in our global trade agreements. Focus on rather then ignoring our unemployment problem. Both parties seem to be avoiding this elephant in the middle of the room.
    Last edited by cameryxle; 08-02-2011 at 03:39 AM.

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    Quote Originally Posted by cameryxle View Post
    Wasnt that what Reagan did? He raised taxes to cut he dificite while at the same time excellerated spending to excellerate economic growth.
    Reagan raised taxes as a trade off for spending cuts. Surprise! Congress changed their minds.

    The ratio in the final deal — the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) — was $3 in spending cuts for every $1 in tax increases. It sounded persuasive at the time. Believing it to be the only way to get spending under control, most of the president’s colleagues signed on. He disliked the tax hikes, of course, but he agreed to it as well.

    You don’t have to be a Washington veteran to predict what happened next. The tax increases were promptly enacted — Congress had no problem accepting that part of the deal — but the promised budget cuts never materialized. After the tax bill passed, some legislators of both parties even claimed that there had been no real commitment to the 3-to-1 ratio.
    Reagan's 1982 Deficit Reduction Compromise: Lessons for Today
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    The elephant in the room is continually attempting to manage and "fix" the economy and thinking we can somehow manage an economy without literally controlling the needs and desires of all of its constituent parts -- you and me and the people around us. Correcting middle-class unemployment is not possible by deliberate policy except by accident or illusion. The price of the illusion is quite high as we've seen since 2007.
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