Monday, Dec 22, 2008
Throwing out tax money down the drain
MoneyWeek: When stimulus just stifles
Cut our taxes, don't bail out every failing company that bleats loud enough. The article doesn't suggest tax cuts, actually, but if the government is determined to rack up as much debt as possible, at least they could give te cash back to the people and companies that earned it in the first place! How about a tax holiday? Now THAT would create a bit of feel-good-factor! And it would reward work and those companies that are doing ok (i.e showing a profit). At the moment our marvellous rulers are rewarding failure, and those who borrowed recklessly. The argument against this is that people and companies might just use the cash to pay down debt, or save it. But surely need to reduce debt and get the savings ratio in this busted flush of an economy back up above its current Zero??
3 Comments
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1. drewster said...
"Intervention kidnaps money that would otherwise be available to businesspeople and entrepreneurs... and it invests it in places that businesspeople and entrepreneurs would never put their money... like uncompetitive car companies or failed banks."
Which companies exactly would otherwise be so amazingly successful, if it weren't for dastardly taxmen pinching their money? I was under the impression that pretty much every company was suffering, although some more than others.
2. crunchy said...
It's a shame we went so far over the top because now it is impossible to recover without serious damage to company's and economies.
Anyone with a GSE in maths saw that we were heading for serious trouble. Had this madness been stopped in it's tracks, which was possible
this damage would not have occured. Why would a government lead it's electorate knowingly into a such a situation without a reason.
Who has so far benefitted from this crises and is likely to into the future?
I would have, along with many others liked to see exactly where the American tax payers $8 trillion bailout has been spent. That is a
staggering amount of money by anyone's standards. I am totally shocked to find that this important information has been blocked even at the
level of Congress. Untill I get a convincing answer I will continue with my questions and suspicions. Well?
I
3. Boom_and_bust said...
You have forgotten that those politicians have too many mates in the failed companies, they are just too important to fail.