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Off-Topic Stock Market & Crypto Discussion

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TheEye said:
Cut spending raise taxes. Eliminate the budget deficit.
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I own my own business, and just between Federal Income, SS#, Medicare, Medicaid, etc. taxes I pay 50%. Then you have state and local taxes et al.

Taxes are high enough, its spending we need to cut.
 
I still see no signs to be optimistic, sorry @mr.h

LABOR MARKET STILL STRONG

Meanwhile, few indications have surfaced so far that the labor market is loosening significantly or that employers are shifting into job-cutting mode.

Initial claims for state unemployment benefits fell unexpectedly by 12,000 to a seasonally adjusted 214,000 for the week ended Oct. 15, the Labor Department said. Data for the prior week was revised to show 2,000 fewer applications filed than previously reported. Economists polled by Reuters had forecast 230,000 applications for the latest week.

The government reported earlier this month that job openings dropped by 1.1 million, the largest decline since April 2020, to 10.1 million on the last day of August. But economists do not expect widespread layoffs, saying companies were wary of releasing their workers after difficulties hiring in the past year as the pandemic forced some people out of the workforce, partly due to prolonged illness caused by the virus.

The claims report showed the number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 21,000 to 1.385 million in the week ending Oct. 8. So-called continuing claims have not strayed materially from that level for roughly six months and remain 400,000-500,000 below the level that prevailed before the pandemic.

"Even as the economy slows, employers appear to be reluctant to lay off workers that they have struggled to hire and retain," Nancy Vanden Houten, lead U.S. economist at Oxford Economics, wrote in a note to clients. "We don't look for claims to fall much below current levels, but we don't look for a significant rise in claims or unemployment either until we enter a recession in 2023."
 
SpikeUM said:
I own my own business, and just between Federal Income, SS#, Medicare, Medicaid, etc. taxes I pay 50%. Then you have state and local taxes et al.

Taxes are high enough, its spending we need to cut.
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Yes, but it's one of the ways to decrease employment, spending and demand on all markets. AKA Inflation.
 
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SpikeUM said:
If you raise taxes, the government, especially this one, has shown they will spend it in a heartbeat.
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That’s why I said to cut spending first. There is no way to eliminate the budget deficit through cuts alone. It’s been done before.
 
TheEye said:
That’s why I said to cut spending first. There is no way to eliminate the budget deficit through cuts alone. It’s been done before.
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We already discussed this in the Tax thread. Say you wanted to "tax the rich", so you taxed billionaires 100% of their wealth, i.e. they would be penniless. You wouldnt even get to a 20% reduction in the deficit. So no, its not taxes we need to raise, its spending we need to get under control.
 
A fair tax or national sales tax is the easiest way to raise revenue. But I’m so ****en stupid that I voted for Marco Julio because he was for it. The moment he got elected, I never heard of it again.
@SpikeUM …I only want a pause in the hikes or smaller hikes, more often if needed. The mkt. can handle rate hikes, just not at the highest rate increases ever. We will eventually get to the same place, but with a softer landing..[maybe]
 
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mr.h said:
A fair tax or national sales tax is the easiest way to raise revenue. But I’m so ****en stupid that I voted for Marco Julio because he was for it. The moment he got elected, I never heard of it again.
@SpikeUM …I only want a pause in the hikes or smaller hikes, more often if needed. The mkt. can handle rate hikes, just not at the highest rate increases ever. We will eventually get to the same place, but with a softer landing..[maybe]
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Our tax code needs to be reworked, but again, the key is to slash spending.
 
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Still the US is stronger than our competitors, China and Western Europe, we still reign supreme.
 
SpikeUM said:
We already discussed this in the Tax thread. Say you wanted to "tax the rich", so you taxed billionaires 100% of their wealth, i.e. they would be penniless. You wouldnt even get to a 20% reduction in the deficit. So no, its not taxes we need to raise, its spending we need to get under control.
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I'm just addressing inflation, not the fairness of it all. Those who are not recipients of government spending only want to cut spending. Those who don't pay taxes only want to raise taxes. Fact is, to address inflation, the burden must be shared by all. Hence why we are so laser focused on interest rates.
 
TheEye said:
I'm just addressing inflation, not the fairness of it all. Those who are not recipients of government spending only want to cut spending. Those who don't pay taxes only want to raise taxes. Fact is, to address inflation, the burden must be shared by all. Hence why we are so laser focused on interest rates.
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Good point, but the Fed has this one weapon, and it will kill the economy and cause pain. We need to cut spending and add revenue. None of which Congress wants to do. Some of the bills that were passed, takes years to bring to fruition, like the infrastructure bill. Where do we cut, that won’t cause major hurt and how do we increase revenue without fairness?
 
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mr.h said:
Good point, but the Fed has this one weapon, and it will kill the economy and cause pain. We need to cut spending and add revenue. None of which Congress wants to do. Some of the bills that were passed, takes years to bring to fruition, like the infrastructure bill. Where do we cut, that won’t cause major hurt and how do we increase revenue without fairness?
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We won’t see another elimination of the deficit in our lifetimes if we don’t agree that both spending cuts and tax hikes are necessary.
 
mr.h said:
Good point, but the Fed has this one weapon, and it will kill the economy and cause pain. We need to cut spending and add revenue. None of which Congress wants to do. Some of the bills that were passed, takes years to bring to fruition, like the infrastructure bill. Where do we cut, that won’t cause major hurt and how do we increase revenue without fairness?
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They also have the reserve rate and the money supply.
 
Janet Yellen on the economy :
“We have advanced an economic plan that finally puts innovation and technology at the forefront of our national agenda,” Yellen will say, according to prepared remarks obtained by the Associated Press. “Together, our efforts are raising our economy’s aggregate production capacity. And in turn, we are raising America’s long-term economic outlook.”

Also, something that never gets a mention, is that war is good for business, sorrily so. It increases domestic manufacturing and helps our commodity production. [like steel]. After WWll we emerged as the strongest economy with full employment.
Between Ukraine, Taiwan, and the Middle East, Defense and aerospace companies are increasing production and with the use of our own materials. Anything we need to import is cheaper with a strong dollar.
 
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