USANews版 - Tax Cuts, Not the Clinton Tax Hike, Produced the 1990s Boom |
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d****i
发帖数: 4354 | 1 http://www.heritage.org/Research/Reports/2008/03/Tax-Cuts-Not-the-Clinton-Tax-Hike-Produced-the-1990s-Boom
Tax Cuts, Not the Clinton Tax Hike, Produced the 1990s Boom
Published on March 4, 2008 by J.D. Foster, Ph.D.
When pressed about the harmful effects on the economy, proponents of higher
taxes often fall back on what can be called the "Clinton defense." President
Bill Clinton pushed a major tax increase through Congress in 1993, and, so
the story goes, the economy boomed. How, then, can tax i | d****i
发帖数: 4354 | 2 "The economy averaged 4.2 percent real growth per year from 1997 to 2000--a
full percentage point higher than during the expansion following the 1993
tax hike (illustrated in the graph above). Employment increased by another
11.5 million jobs, which is roughly comparable to the job growth in the
preceding four-year period. Real wages, however, grew at 6.5 percent, which
is much stronger than the 0.8 percent growth of the preceding period.
Finally, total market capitalization of the S&P 500 rose
【在 d****i 的大作中提到】
: http://www.heritage.org/Research/Reports/2008/03/Tax-Cuts-Not-the-Clinton-Tax-Hike-Produced-the-1990s-Boom
: Tax Cuts, Not the Clinton Tax Hike, Produced the 1990s Boom
: Published on March 4, 2008 by J.D. Foster, Ph.D.
: When pressed about the harmful effects on the economy, proponents of higher
: taxes often fall back on what can be called the "Clinton defense." President
: Bill Clinton pushed a major tax increase through Congress in 1993, and, so
: the story goes, the economy boomed. How, then, can tax i
| m*********a
发帖数: 3299 | 3 If you have a history class, 1997-2000 is called dot.com bubble. All the
phony jobs created and more were eliminated in 2001 dot.com bubble burst.
This was true for Bush's 2002-2010 tax cut. The phony jobs created in Bush's
real estate bubble and more were eliminated in spectacular 2009 financial
crisis. Tax cut never was good for the economy. We have 94% tax rate in
1940s and more than 90% tax rate in 1950-60s, American was the strongest and
richest country in the world. And more importantly, a
【在 d****i 的大作中提到】
: "The economy averaged 4.2 percent real growth per year from 1997 to 2000--a
: full percentage point higher than during the expansion following the 1993
: tax hike (illustrated in the graph above). Employment increased by another
: 11.5 million jobs, which is roughly comparable to the job growth in the
: preceding four-year period. Real wages, however, grew at 6.5 percent, which
: is much stronger than the 0.8 percent growth of the preceding period.
: Finally, total market capitalization of the S&P 500 rose
| d****i
发帖数: 4354 | 4 Dot com bust was mild comparing to the recession we are experiencing now,
and it was true competition at work, produced many of the top companies
today that enhanced America's world leading position.
The financial sector meltdown was result of years of sub prime mortgage
build up due to Democratic policies. Most of the 8 Bush years, economy was
good, jobs were plenty, things turn bad since Democrates took control of the
congress in 2006. No sure what you mean by phony jobs, maybe you are
refer
【在 m*********a 的大作中提到】
: If you have a history class, 1997-2000 is called dot.com bubble. All the
: phony jobs created and more were eliminated in 2001 dot.com bubble burst.
: This was true for Bush's 2002-2010 tax cut. The phony jobs created in Bush's
: real estate bubble and more were eliminated in spectacular 2009 financial
: crisis. Tax cut never was good for the economy. We have 94% tax rate in
: 1940s and more than 90% tax rate in 1950-60s, American was the strongest and
: richest country in the world. And more importantly, a
| m*********a
发帖数: 3299 | 5 I will agree with you completely that low tax is good if this society
lacking money. The real problem here is not lacking capital but too much
capital. Thus, low tax rate leading to economic development is not always
right. It depends on the assumption there is not enough capital to invest.
Otherwise it causes overheating of economy and fuels formation of bubble. It
was so true for 1924 tax cut, which reduced the rate from 75% to 24%.
Oversupply money caused huge market bubble and following grea
【在 d****i 的大作中提到】
: Dot com bust was mild comparing to the recession we are experiencing now,
: and it was true competition at work, produced many of the top companies
: today that enhanced America's world leading position.
: The financial sector meltdown was result of years of sub prime mortgage
: build up due to Democratic policies. Most of the 8 Bush years, economy was
: good, jobs were plenty, things turn bad since Democrates took control of the
: congress in 2006. No sure what you mean by phony jobs, maybe you are
: refer
| m*********a
发帖数: 3299 | 6 There is no wonder more than 10 trillions cash flow to 4-5 % AAA rated toxic
CDO asset in 2005. There is too much money to invest.
【在 d****i 的大作中提到】
: Dot com bust was mild comparing to the recession we are experiencing now,
: and it was true competition at work, produced many of the top companies
: today that enhanced America's world leading position.
: The financial sector meltdown was result of years of sub prime mortgage
: build up due to Democratic policies. Most of the 8 Bush years, economy was
: good, jobs were plenty, things turn bad since Democrates took control of the
: congress in 2006. No sure what you mean by phony jobs, maybe you are
: refer
| y****t
发帖数: 10233 | 7 All the money is in china now, and you have to understand why.
who gonna invest in communism entities? they are doom to fail anyway.
It
on
【在 m*********a 的大作中提到】
: I will agree with you completely that low tax is good if this society
: lacking money. The real problem here is not lacking capital but too much
: capital. Thus, low tax rate leading to economic development is not always
: right. It depends on the assumption there is not enough capital to invest.
: Otherwise it causes overheating of economy and fuels formation of bubble. It
: was so true for 1924 tax cut, which reduced the rate from 75% to 24%.
: Oversupply money caused huge market bubble and following grea
| d****i
发帖数: 4354 | 8 I think what you raised here merit some discussion, will reply when I get
some time.
It
on
【在 m*********a 的大作中提到】
: I will agree with you completely that low tax is good if this society
: lacking money. The real problem here is not lacking capital but too much
: capital. Thus, low tax rate leading to economic development is not always
: right. It depends on the assumption there is not enough capital to invest.
: Otherwise it causes overheating of economy and fuels formation of bubble. It
: was so true for 1924 tax cut, which reduced the rate from 75% to 24%.
: Oversupply money caused huge market bubble and following grea
| a****t
发帖数: 7049 | 9 What you say is not right. The bubbles were caused ultimately by loose
monetary policy, and realistically the only fix is there, too.
You may have noticed the savings rate in the US was negative until recently.
That means there was too much consumption and not enough investment,
contrary to your belief that taxes were too little on the investment side.
Rather, the tax on capital was too much.
It can be argued that taxes were too little on the consumption side, but
when the government itself is t
【在 m*********a 的大作中提到】
: I will agree with you completely that low tax is good if this society
: lacking money. The real problem here is not lacking capital but too much
: capital. Thus, low tax rate leading to economic development is not always
: right. It depends on the assumption there is not enough capital to invest.
: Otherwise it causes overheating of economy and fuels formation of bubble. It
: was so true for 1924 tax cut, which reduced the rate from 75% to 24%.
: Oversupply money caused huge market bubble and following grea
| m*********a
发帖数: 3299 | 10 This is true too. If you can give those 30 trillions dollars with 4-5% yield
, and safe AAA rated short term treasury bonds, these money will stay off
line. If you cut the short term rate to 0-1%, these money will seek ways to
invest to get a better yield. This is actually what I said. In this world,
there is too much capital to seek too little safe investment opportunities.
If you give them a model that house price will never fall, they will chase
such investment. There is so shortage of money.
【在 a****t 的大作中提到】
: What you say is not right. The bubbles were caused ultimately by loose
: monetary policy, and realistically the only fix is there, too.
: You may have noticed the savings rate in the US was negative until recently.
: That means there was too much consumption and not enough investment,
: contrary to your belief that taxes were too little on the investment side.
: Rather, the tax on capital was too much.
: It can be argued that taxes were too little on the consumption side, but
: when the government itself is t
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