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Do you think a recession is coming around the corner?
- Thread starter Realtor
- Start date
It's pretty much what Bernie would do but it's not socialism if there's an R next to his name
They've been saying we are headed into a recession for the last several years. I remember one time they were talking about how bad September was going to be and how September is typically the worst month for stocks. And then September came and went and it was a great month.
A recession is coming eventually, it's cyclical like someone already mentioned. It takes 2 seconds to Google "DJIA" and know if it's up or down for the day. Keep up with it and you'll know when the recession comes.
A recession is coming eventually, it's cyclical like someone already mentioned. It takes 2 seconds to Google "DJIA" and know if it's up or down for the day. Keep up with it and you'll know when the recession comes.
Fed can only play money games so long.
I had really expected the Dems and Obamy to crash our economy while he was in, in order to declare a National Emergency and enact Marshall Law. That was Internet conspiracy talk, but it sounded plausible, because the Dems will ruin any economy like the socialists they are. But I still think it is in their playbook. Hillary might try to pull that trick....
I have read a few articles that paint a very dim picture of the Feds and their blind ambitions...not sure how it will all play out?
I have read a few articles that paint a very dim picture of the Feds and their blind ambitions...not sure how it will all play out?
Not no, but hell NO! And I'll explain why
Our leftist politicians love taxes like it's nirvana. Unbelievable revenue to fund their deepest desires. But is that true? Read on and I'll prove the opposite is true.
What is GDP?
Answer: Gross Domestic Product. Which represents the sum total of economic activity within a territory by everybody including businesses.
What Hauser's law? is the proposition that, in the United States, federal tax revenues since World War II have always been approximately equal to 19.5% of GDP, regardless of wide fluctuations in the marginal tax rate.[1] Historically, since the end of World War II, federal tax receipts as a percentage of gross domestic product averaged 17.9%, with a low of 14.4% and a high of 20.9% between the years 1946 - 2007.
So the following pie chart represents 14.4%, 17.9%, and 20.9%. So if you are only going to collect 17.9 percent of the pizza. Do you want the personal pan pizza? Or the Super duper extra large pizza? because the government is only going to collect 14.4% - 20.9% of the pie, with 17.9% being the average.
But government actions (meaning taxes) can seriously influence the size of the pie.
below you will see a normal distribution curve. Next question. At a tax rate of 0% how much money will the government collect? 0 X any number = ZERO! Right?
Next question. If we spin the big wheel of business is there any guarantee that If you put your money on the table you will win? Answer no!
Next question. If the tax rate is 100% and if you win how much will you have after the government takes 100% of your winnings?
So how much money would the government collect at a tax rate of 100%? The answer is zero because even if you had a profitable business, why would you even open the doors?
So each end of the curve above represents zero revenue to the government.
Now we don't know what the curve looks like but the vertical line in the middle represents the maximum possible revenue the government could collect and any increase any tax rates would in fact shrink the economy.
So long story short. If we can keep our politicians from raising taxes we don't have a recession. As soon as they raise taxes the GDP/ our economy will contract and we will have a recession.
Or think of it as a teeter totter
or more importantly raising taxes moves the economic choices from the economy to the government. Those choices shrink the available number of choices and removes that money from the economy, shrinking the economy and lowering the GDP for the government to collect 17.9 percent of.
Could have just skipped the whole post except for this.
Someone either understands this or they are a liberal butt hole...
