brewster wrote: Thu Aug 29, 2019 6:07 pm
Speaker to Animals wrote: Thu Aug 29, 2019 5:27 pm
brewster wrote: Thu Aug 29, 2019 4:50 pm
I'm laughing my ass off reading here that the new right wing narrative is that Warren is too moderate for the Dems. Awesome! Because the Democratic base is nowhere near as left as you guys think. The current loud far-left assholes don't define the party anymore than the far-right loud assholes of the Tea Party truly defined the Republicans in 2010.
Warren 2020!!!
Free health care for illegals combined with open borders is a real winner. Oh wait. Also take money from white people to give to minorities.
Winning platform, right there.
Neither are her actual positions. The fact that you equate "rich" with "white" and "poor" with "minorities" is about you not her. This is a classic dog whistle, conflating race and class, it's how the GOP has gotten poor and working class whites to vote against their own interests for generations now. Progressive taxation is, well, Progressive, which is what she professes to be. I don't think the millionaire wealth tax is doable for practical reasons, but it's not a bad idea.
How about some weekend red pills?
Why a “Billionaire” Wealth Tax Would Hurt the Working Poor and the Middle Class
So over time, it would be unlikely that any new Amazons or Apples would be started, and existing firms would be placed in ever less capable hands, with ever lower valuations as the wealth tax works its way down the line from billionaires to millionaires.
Sanders would either have to tax a vastly diminished pie or ask foreign investors to buy up US firms or, more likely, just confiscate shares directly and nationalize the companies. After a very short time, these companies would end up being majority-owned by the state—a veritable “trillionaire.”
. . .
A billionaire businessperson could, if they wanted to, spend their fortune building statues of themselves. But that would only be a drain on the wealth they had acquired through previous rounds of serving customers. They would quickly find that it does not generate new income, and would promptly stop, choosing instead to invest in ways that expand the business by serving even more people. There is an effective feedback loop to weed out unproductive choices and reward productive ones.
But the state, for its entire existence, has had the privilege of being able to just confiscate any resources it wants and order them to be used in any way its rulers direct. It can choose to build statues, pyramids, or whatever it wants, whether or not it serves real consumer needs. Neither does it have to worry about competition from new entrants doing a better job; it can just ban them. Since nobody gets to choose whether to commit the resources or buy the finished goods, there is no way of knowing whether those resources were spent wisely or poorly.
This does not mean people in government don’t make any good decisions. They will stumble upon some good ones over time. But the people involved do not bear any direct consequences for their bad decisions, and neither are they directly rewarded for their good decisions. They have less effective mechanisms for weeding out the bad decisions and doubling down on the good ones. There is more incentive for managers and employees to make their own job more comfortable and less demanding, and there is less consequence for leaving customers twisting in the wind.
In short, a wealth tax means state-owned enterprises, and a state-owned enterprise can get away with being unresponsive, self-absorbed and lazy.
If you dislike productive billionaires, you ought to be 1,000 times more suspect of confiscatory trillionaires.
and
“How can you talk economics when we’re talking about people’s lives!”
The results of all this is that you cannot dismiss economic realities–the cost of doing whatever “good thing” you want to do via government comes at the expense of no longer being able to do something else with those resources. After all, Economics is the study of cause and effect relationships in the allocation of scarce resources that have alternative uses. Scarce, meaning you never have enough for everyone that wants it. And so, use them for one thing and lose the ability to use them for something else.
In politics, people tend to make categorical decisions. We must do this, regardless of the cost. And doing “this” means we don’t do “that.” Political solutions tend to miss the incremental tradeoffs. How much of “that” are we willing to give up for how much of “this”?
And when the “that” is something as nebulous to most people’s thinking as a Gross Domestic Product, particularly when a lot of that product is in other people’s hands rather than ones own, the very real effects of trading “that” get lost in the shuffle.
It’s very short-sighted and we need to work hard to not do that.
Unless, of course, you want people to die.