- Dec 20, 2009
- Reaction score
- Political Leaning
I bet you can't name one example of a business picking up a large amt of business from a newly defunct company without needing to hire any new employees to handle the workload.
cute how you are switching over to the new goalpost of any, which i suppose is a way of seeking to avoid the point that unemployment still increases?
We are talking about tax cuts. And tax cuts dont create jobs
not directly, no, they don't. what they do is make it easier for employers to create jobs.
And every business owner knows that tax rates change regularly
not necessarily; the Bush Tax rates stayed in place for years.
Uncertainty is a part of doing business.
it is part of the challenge of doing business, and part of the challenge of creating jobs. increase the uncertainty, increase the challenge, and you decrease business and decrease employment.
And a raise in income tax rates does not turn a profitable employee into an unprofitable one because income tax only applies to the profits an employee brings in. Income tax increases can result in a lower return per employee, but unless the income tax rate exceeds 100%, the employee will still be able to afford them because every business can afford a profit.
and, again, you are choosing to ignore relative levels of risk. for the model you propose, AAA bonds and junk bonds should have the same rate of return.
Then you dont know what demand is. In economics, it is possible to have a demand for things that don't exist. There is a demand for a cure (and treatments) for AIDS. That's why Big Pharma is investing so much money in finding a cure or treatments for it. And since people have money to pay for these cures and treatments, it is appropriate to call this "demand" in the economic sense of the word
in no way does the fact that potential demand exists for things that do not yet exist alter the fact that demand as actually expressed is a function of supply. A poor person with AIDs in Africa has a nearly perfectly inelastic "potential" demand for a cure, but his actual "demand" will be what he can afford to pay.