JoyV wrote:
OK, I will try to keep this simple.
OK...
JoyV wrote:
When you increase taxes to subsidize jobs, the taxpayers have less money from their wages so buy less.
OK, I guess you *did* say you were going to keep it simple, so I guess we'll just ignore all the other factors for now.
JoyV wrote:
The businesses NOT subsidized don't increase or downsize or outsource. So more Americans are out of work who then need the subsidized jobs.
I'm *trying* to follow your reasoning here but seriously, how does a business that is NOT downsized or outsourced cause Americans to loose jobs?
JoyV wrote:
The new jobs are usually low wage, so these people don't have a lot of buying power either. The only winners are the government employees who are needed to manage the subsidies, and the politicians who take a cut.
OK look, I'm already familiar with the point you are *trying* to make here. You are simply saying that when more taxes are taken out of a worker's paycheck there is less for him to spend. I got that.
But there's a LOT of factors you fail to mention here such as the fact that taxes often cover expenses that the worker would have otherwise had to pay for out of pocket, probably at a much higher cost. For instance, I know for a fact that Americans are forced to pay more for health care than Europeans do because Europeans tend to use taxes and we prefer not to. BTW, Europeans actually get better health care! Cancer treatment is the ONLY exception to that rule and that's because we figured out how to make cancer profitable - a prerequisite for ANY privately-funded health care service.
You also fail to explain how less money in a worker's pocket causes nation-wide job loss, but since I am so familiar with the rhetoric you are trying to dispense here, I'll just make that connection for you... less money in the pockets of workers = less market demand = less jobs to satisfy the demand.
See? I understand these "simple" 5th grade concepts pretty well... They get shoved in my face on a regular basis by people who think they've just discovered the Holy Grail of explanations. But the world doesn't operate on 5th grade concepts. Sorry.
Now, if you're ready for some adult concepts, here's one... the government is in fact *part* of the economy... In fact, every last penny the government takes goes right back into the economy. There is no accumulation of wealth in the government, so whatever money is taken from a worker's paycheck winds up going immediately into the paychecks of other workers. This is why, on a national or state level, it's actually impossible to blame taxes for job loss.
The ONLY way to starve an economy to the point where jobs are lost is to take money OUT of the economy, which means keeping it stashed away instead of spending it. Our constitutional governments don't even have the ability to do this, but private investors can and they do, much to the detriment of the American economy. One of the underlying reasons for the American decline is the dangerously high concentration of wealth accumulated in fewer and fewer hands. There's almost a direct correlation between the concentration of wealth and the misery of the middle-class.
BTW Trump's policies so far heavily favor the continued concentration of wealth. As soon as Obama's economic after-effects wear off, during the course of 2018, you will see a marked change in economic outlook and you're not going to like it... and it will be your fault for electing Trump.
JoyV wrote:
Contrast with reducing taxes and regulations. More start-up businesses, inshoring, companies expand, and struggling small businesses expand. So more jobs.
Pure conjecture. You have no proof of ANY relation between ANY of these things.
JoyV wrote:
Some, such as those hired by small business may be low income. Manufacturing jobs have never been low income, but a wage which supports a middle income family buying a house--raising a family--paying for college for their kids--etc.
That's just not true... Lot's of manufacturing jobs are low wage. Ask the person who made your sneakers how much money she was paid for it. The ONLY manufacturing jobs that paid decent wages were the ones that were forced by organized labor and government to pay decent wages.
JoyV wrote:
And not only do the taxpayers in these jobs have a larger income, they get to jeep more of it. This means more buying power. The only losers are the skimming politicians and the now un-needed government subsidy workers.
1. Government subsidy workers, such as police officers, firefighters, military servicemen and teachers will ALWAYS be needed because jobs like these are not profit-driven, so they will always need to be subsidized or they simply won't exist.
2. Skimming is illegal and the last place a corrupt politician would skim from is government revenue. Almost every case of corruption has been a matter of private contributions.
Finally, there is no guarantee that a company will give workers raises just because they pay less tax, especially when they can give that money to the investors to keep the company attractive on Wall Street. We've had almost 40 years to observe this during which time we have seen wages stagnate and wealth concentration sky-rocket, so really, you would have to be incredibly naive to keep believing the biggest con the American people have ever fallen for.