The Ignorant Investor

Ignorance Can't Stand in the Way of My Opinion

Friday, October 08, 2010

 

Our new economic theorycrafting

Bad jobs report. Local governments cutting positions as stimulus funds run out and austerity measures kick in. Private sector isn’t hiring because of over-capacity. The solution: Keep the Bush tax cuts! Then our free-market capitalists can use the money they don't have to send to the government to invest in making jobs for workers in China or India or Mexico, who will produce all the stuff our unemployed workers will buy here with their dwindling employment checks. If we impose more taxes on the wealthy, we know that the bureaucrats will take the money and spend it here on stuff like infrastructure or jobs programs (i.e., an inefficient use of low-cost capital that can be put to more profitable uses by investing it abroad and paying higher bonuses to corporate managers).

Note: This theorizing makes much more sense if you are a highly trained economist.

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