It seems to me that even the economists, who should have been all over this, have missed the boat about tax cuts for the wealthy and for wealthy corporations will not create more jobs. They have also missed why tax increases on the wealthy will not cost jobs. It is the Law of Diminishing Returns.
While normally applied to factors of production, the law of diminishing returns extends to any goods or services, or anything one has acquired in life. Its definition is:
A classic economic concept that states that as more investment in an area is made, overall return on that investment increases at a declining rate, assuming that all variables remain fixed. To continue to make an investment after a certain point (which varies from context to context) is to receive a decreasing return on that input.
What does that have to do with taxes on corporations an the wealthy and its relationship to jobs? Here are a few illustrations.Illustration 1: When somebody is really hungry and has no food in the house, if he gets $10.00, he will go out and spend it all on food. After he has eaten, if he gets another $10.00, he is not as hungry, so he may only spend half of it on food. After that, getting another 10 spot may only cause him to spend $2.00 on food, and once he is full, he won’t spend any more of it on food. This is the law of diminishing returns. The first meal is a necessity, the second is a luxury, soon you need no more and trying to eat more stops being a good, it becomes a bad. You may get so stuffed that the sight of food is unappealing. Or think of zucchini. If your plant yields two zucchini, you may eat them. If it gives you 10, you may eat 8 and give two away. After 25, you may pay people to take them.
Illustration 2: Think of employees. If you have work for twice as many people as you have and can sell as much product as twice as many employees can produce, if you get some increased income or decreased expenditure, you will hire more employees. You will do so as long as the next person hired produces more than he costs. However, as soon as you have enough employees to meet demand, you stop hiring. In fact, if you hire more, they will get in each other’s way and will not benefit the company.
The wealthy and the corporations currently have their needs met, and most of their wants. They really don’t have anything compelling to spend money on. You could decrease their taxes to zero (and have in many cases), and they won’t buy more nor will they hire more. The money will sit around, lacking anything to spend it on. This is especially true for corporations in today’s economy. With people too strapped for cash to be spending freely, demand is suppressed. Making more product will not produce a return because nobody will buy it. It stops being a good and starts being a bad because you have spend money to store the excess. No well run corporation will do that.
However, if you were to tax the wealthy and the corporations, you could use that money on projects the country needs (think bridges, airports, schools). That would create jobs. At first, the new jobholders would spend on clearing debt and the necessities they have been without. That is a good thing, it gets money circulating again. Then they can start buying other things. That would stimulate demand. More demand would mean more products would be sold. More sold products means more profits for the corporations, but this time there would be a need for more employees. Who would allow the corporations to make more profits.
It is amazing that the corporations would fight the idea of ensuring people were employed so they could buy their goods. It is what the Marshall plan after WWII was all about – ensuring Europeans had income so they could buy American goods and services. It was what the labor movement has always been about – ensuring healthy laborers had income and time to enjoy it so the economy could thrive. (This also benefits employers because healthy, fed and happy employees are more productive.)
When the Republicans talk about how tax cuts for the rich creates jobs, we need to remind them of the most basic of Economic tautologies, the Law of Diminishing Returns.
Wonderful goods from you, man. I have understand your stuff previous to and you are just too excellent. I really like what you have acquired here, really like what you are stating and the way in which you say it. You make it entertaining and you still care for to keep it smart. I cant wait to read far more from you. This is really a great website.
Really appreciate you sharing this blog.Thanks Again. Will read on…
Hey, thanks for the article post.Really looking forward to read more. Much obliged.
I simply want to tell you that I am just beginner to blogging and site-building and truly liked this web page. Very likely I’m planning to bookmark your site . You certainly have tremendous writings. Thanks a bunch for sharing your webpage.
Good reading, but I need to read 1 more time. Thanks! Will be good for this month SEO Service project.
Good reading, but I need to read 1 more time. Thanks! Will be good for this month SEO Service project.
Good information. Lucky me I found your blog by chance (stumbleupon). I’ve book-marked it for later!
Best view i have ever seen !
Best view i have ever seen !
Thank you!
I dugg some of you post as I cerebrated they were invaluable extremely helpful
Usually I don’t read post on blogs, however I wish to say that this write-up very forced me to try and do so! Your writing style has been surprised me. Thank you, quite nice post.
Thank you so much!
Heya im for the first time here. I came across this board and I to find It truly useful & it helped me out a lot. I am hoping to offer something again and help others like you aided me.
Hmm it seems like your website ate my first comment (it was extremely long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I too am an aspiring blog writer but I’m still new to everything. Do you have any helpful hints for inexperienced blog writers? I’d definitely appreciate it.
I am learning myself. This is a way for me to put my thoughts somewhere I can keep them.
As a Newbie, I am continuously exploring online for articles that can be of assistance to me. Thank you
I was curious if you ever considered changing the page layout of your blog? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having 1 or 2 images. Maybe you could space it out better?
Thanks for revealing your ideas here. The other issue is that whenever a problem develops with a pc motherboard, people should not take the risk associated with repairing that themselves because if it is not done right it can lead to permanent damage to the full laptop. In most cases, it is safe to approach a dealer of any laptop for the repair of its motherboard. They’ve already technicians who’ve an experience in dealing with laptop motherboard problems and can get the right prognosis and conduct repairs.
Whats up very cool website!! Guy .. Beautiful .. Amazing .. I will bookmark your web site and take the feeds additionally¡KI’m satisfied to search out numerous helpful information here within the put up, we need work out more techniques in this regard, thanks for sharing. . . . . .
I enjoy you because of all your efforts on this website. Ellie really loves making time for research and it is easy to understand why. My partner and i notice all of the dynamic mode you render efficient strategies on the blog and in addition inspire participation from website visitors about this issue plus our favorite girl is always being taught a great deal. Take advantage of the remaining portion of the year. Your performing a very good job.
Thank you. Today I start a new project – stay tuned!
I am not sure where you’re getting your info, but good topic. I needs to spend some time learning much more or understanding more. Thanks for magnificent info I was looking for this information for my mission.
My information comes from many years of living and my degree in Economics. Always glad to be of assistance.
WONDERFUL Post.thanks for share..more wait .. …
Do you mind if I quote a few of your articles as long as I provide credit and sources back to your blog? My website is in the very same area of interest as yours and my visitors would definitely benefit from some of the information you provide here. Please let me know if this alright with you. Thank you!
Please feel free! It does no good if nobody ever sees it.
I really like your writing style, fantastic information, thanks for posting : D.
Thank you! I am back to my writing now!
Hello, i read your blog from time to time and i own a similar one and i was just curious if you get a lot of spam responses? If so how do you stop it, any plugin or anything you can suggest? I get so much lately it’s driving me crazy so any help is very much appreciated.
I get a lot of spam. Delete is my friend.
Thanks for your beneficial post. In recent times, I have come to be able to understand that the symptoms of mesothelioma are caused by the actual build up connected fluid between the lining of your lung and the chest muscles cavity. The illness may start while in the chest place and spread to other areas of the body. Other symptoms of pleural mesothelioma include weight reduction, severe inhaling trouble, temperature, difficulty swallowing, and irritation of the face and neck areas. It really should be noted that some people living with the disease don’t experience virtually any serious indicators at all.
Definitely believe that which you stated. Your favorite reason seemed to be on the web the simplest thing to be aware of. I say to you, I certainly get irked while people think about worries that they plainly do not know about. You managed to hit the nail upon the top and defined out the whole thing without having side effect , people could take a signal. Will probably be back to get more. Thanks
Attractive section of content. I just stumbled upon your web site and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Anyway I’ll be subscribing to your augment and even I achievement you access consistently rapidly.
Good write-up, I am normal visitor of one’s website, maintain up the nice operate, and It is going to be a regular visitor for a long time.
Thanks for sharing superb informations. Your website is very cool. I’m impressed by the details that you have on this blog. It reveals how nicely you perceive this subject. Bookmarked this website page, will come back for more articles. You, my friend, ROCK! I found simply the info I already searched all over the place and simply couldn’t come across. What a great web site.
You really make it seem really easy with your presentation however I find this topic to be actually one thing which I feel I might by no means understand. It seems too complex and extremely extensive for me. I am having a look forward on your subsequent post, I’ll try to get the dangle of it!
You have remarked very interesting points! ps decent web site.
Hi would you mind letting me know which hosting company you’re working with? I’ve loaded your blog in 3 completely different web browsers and I must say this blog loads a lot quicker then most. Can you suggest a good web hosting provider at a reasonable price? Many thanks, I appreciate it!
I am using SiteGround. I am pretty happy with them.
Woah! I’m really enjoying the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between usability and visual appeal. I must say that you’ve done a superb job with this. Additionally, the blog loads extremely quick for me on Chrome. Excellent Blog!
As soon as I discovered this website I went on reddit to share some of the love with them.
Hi there I am so grateful I found your web site, I really found you by accident, while I was searching on Google for something else, Anyways I am here now and would just like to say many thanks for a marvelous post and a all round interesting blog (I also love the theme/design), I dont have time to browse it all at the moment but I have book-marked it and also included your RSS feeds, so when I have time I will be back to read a great deal more, Please do keep up the superb job.
I found your weblog website on google and test a number of of your early posts. Proceed to keep up the very good operate. I just additional up your RSS feed to my MSN News Reader. Seeking forward to reading more from you in a while!…
It’s really a cool and useful piece of info. I am glad that you shared this useful information with us. Please keep us up to date like this. Thanks for sharing.
Wonderful blog! Do you have any hints for aspiring writers? I’m hoping to start my own website soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many options out there that I’m totally overwhelmed .. Any recommendations? Thanks a lot!
Hello. impressive job. I did not imagine this. This is a splendid story. Thanks!
Also I believe that mesothelioma cancer is a scarce form of cancer that is often found in individuals previously subjected to asbestos. Cancerous cellular material form within the mesothelium, which is a protecting lining that covers a lot of the body’s bodily organs. These cells generally form from the lining in the lungs, abdomen, or the sac which encircles one’s heart. Thanks for expressing your ideas.
Hmm it appears like your blog ate my first comment (it was super long) so I guess I’ll just sum it up what I submitted and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog writer but I’m still new to everything. Do you have any suggestions for novice blog writers? I’d definitely appreciate it.
There are some attention-grabbing cut-off dates in this article however I don’t know if I see all of them center to heart. There may be some validity however I will take hold opinion until I look into it further. Good article, thanks and we would like extra! Added to FeedBurner as effectively
Hello.This article was extremely motivating, especially because I was browsing for thoughts on this subject last couple of days.
I have been absent for some time, but now I remember why I used to love this web site. Thanks, I’ll try and check back more often. How frequently you update your website?
My partner and I absolutely love your blog and find almost all of your post’s to be precisely what I’m looking for. Do you offer guest writers to write content for you? I wouldn’t mind publishing a post or elaborating on most of the subjects you write concerning here. Again, awesome web site!
Howdy, May I download this post snapshot and use that on my personal blog site?
As long as it is fully attributed. And thank you.
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several emails with the same comment. Is there any way you can remove me from that service? Cheers!
I do not find you in my list of subscribers, so I can’t make that change for you.
Someone necessarily assist to make critically articles I’d state. This is the first time I frequented your web page and thus far? I amazed with the analysis you made to make this actual submit incredible. Excellent activity!
I’m impressed, I must say. Rarely do I come across a blog that’s both equally educative and amusing, and without a doubt, you have hit the nail on the head. The issue is something that too few people are speaking intelligently about. Now i’m very happy I came across this in my search for something relating to this.
I am so happy to read this. This is the type of manual that needs to be given and not the accidental misinformation that is at the other blogs. Appreciate your sharing this best doc.
You are a very intelligent person!
Thank you!
I’ll right away grab your rss feed as I can’t find your e-mail subscription link or newsletter service. Do you have any? Please let me know so that I could subscribe. Thanks.
I love your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to construct my own blog and would like to find out where u got this from. appreciate it
I like the helpful information you provide in your articles. I will bookmark your blog and check again here frequently. I’m quite sure I’ll learn many new stuff right here! Best of luck for the next!
Great website! I am loving it!! Will be back later to read some more. I am bookmarking your feeds also.
Thanks so much for giving everyone a very brilliant possiblity to read in detail from here. It’s always very good and as well , jam-packed with fun for me personally and my office colleagues to search your website really thrice in 7 days to read the latest things you have got. Not to mention, I am also at all times amazed considering the striking opinions you give. Certain 2 points on this page are undeniably the simplest we have had.
I was reading through some of your content on this website and I think this web site is very informative! Keep posting.
I have been surfing on-line more than 3 hours today, but I never found any attention-grabbing article like yours. It¡¦s lovely worth sufficient for me. In my view, if all site owners and bloggers made good content material as you did, the net will be a lot more useful than ever before.
Thank you for some other wonderful article. The place else could anybody get that kind of information in such an ideal manner of writing? I have a presentation subsequent week, and I’m on the search for such info.
Hi there would you mind stating which blog platform you’re working with? I’m planning to start my own blog in the near future but I’m having a difficult time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I’m looking for something unique. P.S My apologies for getting off-topic but I had to ask!
I want to convey my appreciation for your generosity supporting persons who require guidance on this important situation. Your personal dedication to passing the message up and down had become rather beneficial and has continuously made girls just like me to reach their desired goals. Your personal invaluable tutorial entails this much to me and somewhat more to my peers. Thank you; from everyone of us.
I’ve been browsing on-line greater than 3 hours today, yet I by no means discovered any interesting article like yours. It is beautiful price enough for me. In my view, if all webmasters and bloggers made excellent content material as you did, the internet might be a lot more helpful than ever before.
I do agree with all of the ideas you’ve presented to your post. They’re very convincing and can certainly work. Still, the posts are too short for novices. May you please lengthen them a bit from subsequent time? Thank you for the post.
Generally I don’t learn article on blogs, however I wish to say that this write-up very compelled me to try and do so! Your writing style has been amazed me. Thank you, very nice article.
With havin so much content and articles do you ever run into any problems of plagorism or copyright infringement? My website has a lot of completely unique content I’ve either authored myself or outsourced but it appears a lot of it is popping it up all over the web without my agreement. Do you know any methods to help stop content from being ripped off? I’d really appreciate it.
I don’t know if my work has been plagiarized or not. If people think it is good, I suppose it has been plagiarized.
I am always searching online for posts that can aid me. Thx!
Wow! Thank you! I always needed to write on my blog something like that. Can I include a fragment of your post to my blog?
Of course!
Terrific work! This is the type of information that are supposed to be shared around the internet. Disgrace on Google for now not positioning this put up upper! Come on over and discuss with my web site . Thanks =)
Does your blog have a contact page? I’m having trouble locating it but, I’d like to send you an e-mail. I’ve got some ideas for your blog you might be interested in hearing. Either way, great blog and I look forward to seeing it develop over time.
I don’t even know how I ended up here, but I thought this post was great. I do not know who you are but certainly you’re going to a famous blogger if you are not already 😉 Cheers!
Please let me know if you’re looking for a writer for your blog. You have some really great articles and I feel I would be a good asset. If you ever want to take some of the load off, I’d love to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Thanks!
I truly enjoy studying on this web site , it has got superb blog posts. “Dream no small dreams. They have no power to stir the souls of men.” by Victor Hugo.
Greetings from Los angeles! I’m bored to tears at work so I decided to check out your blog on my iphone during lunch break. I love the information you present here and can’t wait to take a look when I get home. I’m shocked at how fast your blog loaded on my mobile .. I’m not even using WIFI, just 3G .. Anyhow, excellent blog!
With havin so much content and articles do you ever run into any problems of plagorism or copyright violation? My blog has a lot of completely unique content I’ve either authored myself or outsourced but it seems a lot of it is popping it up all over the internet without my permission. Do you know any solutions to help prevent content from being stolen? I’d genuinely appreciate it.
Hey would you mind stating which blog platform you’re working with? I’m looking to start my own blog soon but I’m having a tough time making a decision between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I’m looking for something unique. P.S Sorry for being off-topic but I had to ask!
This is WordPress on SiteGround. My design was built from scratch.
I am not certain the place you’re getting your info, but good topic. I must spend a while learning more or understanding more. Thanks for wonderful info I used to be looking for this info for my mission.
Good – I should definitely pronounce, impressed with your site. I had no trouble navigating through all the tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it at all. Quite unusual. Is likely to appreciate it for those who add forums or anything, website theme . a tones way for your client to communicate. Nice task.