I am getting really fed up over this crap!

[Raoul]

What I'm talking about is simply that my wife and I put out stuff via videos over here and YouTube and we talk alot about fixes to our economy. A while back we put out one in which I showed how Obama could create 15-20 million jobs paying 30K overnight by taxing the excess profits/money the corporate whores are sitting on at a 50% rate. IE - they're hoarding over 2 trillion so take 1/2 of it to create the jobs and our economy would heal overnight!

Today I got an email from the rocket scientists over at a dem site. Please read it and see if you see what I see. And then please tell me how I can make some money over making predictions. (G)

Bob Fertik, Democrats.com

Dear Raoul,

In December, Republicans demanded - and won - an extension of Bush's tax cuts for the rich costing $858 billion over two years.

Amazingly, that same $858 billion could create jobs for all 14.5 million unemployed Americans paying nearly $30,000 per year!

The rich don't need more tax breaks. But 14.5 million unemployed Americans desperately need jobs.

Tell Congress: Create Jobs Now!
(end of email)

[Exilednight]

1. Do you have a degree in

Political Science, Macro Economics, a Phd in History, a Masters in Communications, or an MBA?

If so, you can create your own PAC or think tank. If not, then you will never get a gig making predictions.

[Raoul]

5. .....Actually

I have founded a think tank - right now! It consists of me, myself, and I.. LOL

[Occulus]

11. At least three of those five are a BIG part of the problem.

For example, I never met an MBA I would ever put in charge of anything more involved than cleaning cat pans.

[Exilednight]

16. I have an MBA, but I get where you're coming from. One of my biggest

complaints has been the watered down effect of MBA programs. I received mine from the Booth School of Business, but I see many programs that teach a set of principles that a monkey could follow.

Too often, I see these newly crowned MBAers whose first step is not to create a culture of sustainable growth, but rather they try to max out profits by cost cutting.

[blondeatlast]

20. I truly

:spray:ed at that... :thumbsup:

[WiffenPoof]

2. I received the following in an email...



Please find below my suggestion for fixing America 's economy.

Instead of giving billions of dollars to companies that will squander the money on lavish parties and unearned bonuses, use the following plan.


You can call it the "Patriotic Retirement Plan":



There are about 40 million people over 50 in the work force.
Pay them $1 million apiece severance with no taxes due on it, for early retirement with the following stipulations:


1) They MUST retire. Forty million job openings - Unemployment fixed.


2) They MUST buy a new AMERICAN Car. Forty million cars ordered - Auto Industry fixed.


3) They MUST either buy a house or pay off their mortgage - Housing Crisis fixed.

It can't get any easier than that!




P.S. If more money is needed, have all members in Congress pay their taxes..

Mr. President, while you're at it, make Congress retire on Social Security and Medicare. I'll bet both programs would be fixed pronto!

If you think this would work, please forward to everyone you know.

If not, please disregard.

 

[bighart]

3. I saw that one too.

[Raoul]

4. I HATE YOU, I HATE YOU!!!

Actually I don't because I'm too humbled by your plan. It really is a great one so they'll never adopt it. Man, if only they did - my wife would be the first to exit. In fact, I would go out, get a quickie job at Walmart's or some other equally odious place and then grab your offer..

NOTE-CORRECTION.. I just did the math and your plan is too costly in my view. Mine is more conservative but still creates 30 million jobs at 30k/yr each.

[Statistical]

8. No it is a plan from someone who faith basic math.

$1 million * 40 million = $40 trillion (roughly 3x the aggregate output of US economy).

[former9thward]

6. That would cost 40 trillion dollars

or about twice the total wealth of the U.S. I'm sure someone will get right on that.

[Statistical]

7. That would "only" cost $40 trillion.

To put it into perspective US GDP is roughly $14T.

One the US doesn't have $40T. The combined national debt since th founding of the country is ~$15T. So to borrow that would almost quadruple the national debt. It would also put our debt to GDP ratio at something like 300%, and turn our credit rating into junk bond status.

Second even if the US did have $40T, dumping $40T into money supply would cause hyperinflation. You haven't changed aggregate output (GDP) you simply have dumped money into the system. A rise in monetary supply without rise in output = inflation. Likely crippling hyperinflation.

A million doesn't go far when a gallon of milk is $9, gasoline is $22.60, a new car is $150K, and a starter home is $4.2 million.

[Raoul]

12. The last 2

of you got it right which I missed. I didn't do the math correctly so once more - my plan is more sound. If you take 1 trillion and divide it by $30,000, I think you come up with 30 million jobs.

[Statistical]

13. Well sooooorrry I was typing as they were typing.

Will you feel better if I erase it?

[dkofos]

9. Sounds good, until you actually do the math.

[Statistical]

10. So what happens in a year?

You are taking a one time thing $858 billion and paying for a single year of salaries. In a year where will you get another $858 billion. A year after that where is the next $858 billion?

[Raoul]

14. What happens in a year

is that they can keep doing this year after year because:

1. The people making the 30k are gonna spend alot of it based on empirical proof from economic activity
studied year after year during the past 30 or 40 years.
2. The jobs would become self sustaining - people spending most of the money to buy goods and services which would
3. Go back into the corporate profits.


And most importantly:
I think you should take some economic courses to see the veracity of what I just posited.

[Statistical]

15. No you should study economics.

1) No good job costs an employer $30K. $30K in wages costs more like $50K - $70K in total labor costs (insurance, benefits, UI, payroll taxes, training, hiring overhead, etc). If you spend $30K per job it would fund a sub minimum wage job. It is unlikely many people on unemployment would rather take a job making less than minimum wage that likely will be gone in a year than wait for a real job.

2) There will be no belief in a self sustaining recovery. Everyone will know the 30 million "jobs" is merely a one time transfer of wealth from one balance sheet to another that isn't sustainable. Once it is gone, the demand will be gone also.

3) Even if Congress passed this don't you think Corporations will react. Like issue a dividend, or buy back stock, or acquire other companies. Anything to reduce the amount of cash on their books, and thus the amount collected by the tax. How can you tax money that is no longer there? You honestly think they will just sit there and say "oh well it is only $1 trillion".

4) Even $30K cash wouldn't make a job appear. It would simply be a wealth transfer. The unemployed would get $30K. You haven't increases the aggregate output of the country. Hence your $1 trillion would simply increase money supply without increasing output thus causing inflation.

5) If you did want to employ these people there would be overhead. $30K doesn't buy $30K job. You can't simply give someone $30K and say "you have a job". There is overhead to business. It would take time and money to find projects, people would need to be trained, you would need to go through a hiring process to find qualified applications, there would be skill mismatches. All this would act as friction which reduces the amount of actual outuput produced and cut into the $30K per job (which is more like $15K in wages).

[Name removed]

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[Statistical]

18. Keep believing. Keep believing.

Still I will give you credit your "plan" is slightly less dubious than the "give everyone a mil" chain email.

Here let me simplify it for you:
* $30K cash doesn't pay for job with $30K in wages, not even close (and isn't $30K pretty shitty job?).
* Median wage in US is $39K. So even your fantasy horribly cuts wages. http://www.ssa.gov/oact/cola/central.html
* Corporations would move that money thus (greedy or not) there wouldn't be 1 trillion to begin with.

So you wouldn't get 30 million $30K jobs from $1 trillion (also $30K is pretty damn shitty no?) and you wouldn't get a $1 trillion to begin with. It is just more pie in the sky if I take someone else's money (and pretend their will be no reaction and the economy will be static) then all problems will be solved thinking.

There are liberal economist you know that right? Strange that you came up with this simple magic solution yet no liberal economist have come up with anything similar. Maybe some of them should give back their Nobel Prizes in economics?

[Name removed]

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