Warning all leased O/O

Interesting indeed. Was he also a Democrat like Rosa too?

 

In 1920s and 1930s Germany, there were times when it took a wheelbarrow full of money to buy a loaf of bread. It was cheaper to use money for toiletpaper than it was to buy toiletpaper. That is a worthless currency. Our currency is fine.

 

No, but he wasn't making the observation as a criticism.

 

It doesn't need to return to its original value in order to increase in value. Tons of sources to research in Economics about it if one was so inclined.

 

Well, our currency isn't that bad YET. 1910 Germany thought everything was great too.

 

Yes it does. In fact it has a direct impact on what we're talking about, because what a punitively high top tier tax rate does is it disincentivizes boards of directors and CEO's from taking all the money they want from the company, which means the company has to find something else to do with the money, and history proves conclusively that the top three choices are investing in facilities, investing in workers, and lowering prices. And not only does higher worker pay equal increased economic demand, but it would also lessen the ability for these 1099 companies to take advantage of gullible recent CDLers, as other jobs would pay better by comparison .

Doesn't matter. Again, the purpose of a punitive high top tier tax rate is not to take his money and put it into the US Treasury, but rather the purpose is to dicincentivize him from taking near that much from the company in the first place. He can do just fine on $10 million per year. If the company would invest the difference on other things besides stuffing it into his pocket, then they'd likely be inclined to do other things with the money, such as pay truck drivers more.

No argument there. That's a big reason. But the other big reason for the complexity which flies under the radar is we have a whole industry built squarely on tax preparation, and all those magical profits would evaporate overnight if the tax code was made rational. And those big tax preparation companies spend tons of money on lobbying to ensure that that never happens.

Nah, the founders were convinced that a progressive tax code is the way to go, and I'm convinced that they were right. I agree it ought to be drastically simplified, but not quite as simple as one flat rate. We could do it my way and still all do our tax returns with just a few lines on a postcard.

Not necessarily. Again, their tax code can be tweaked to incentivize other behaviors besides stuffing truckloads of cash into the pockets of CEOs and directors.

Not exactly no consequence. They still pay interest on it. Remember, when the last tax cut was put in, it was claimed that it would spur an explosion of economic growth which would supposedly eliminate the deficit. Yeah nah, deficit up 392% in the three years since then. But that's the subject of a different thread.

 

Things were pretty good. But then the war happened - and after the war, the astronomical reparations, and then the crash of the world economy.

 

They got paid 3 times a day at that time. So you gave your wife the money during the day hoping she could buy something before it devalued more

 

Yup, and things were exactly the opposite here. The value of money was going up so fast that nobody wanted to spend it on anything for fear that the same money could buy more tomorrow. So when holding cash became a better investment than the stock market, that's when the stock market went south.