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View Diary: Dear Beltway Insiders, while you make pretty speeches, I'm being cut to shreds (156 comments)

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  •  Well, first off (0+ / 0-)
    For you to be so closed off into actual corporate practices is quiet interesting.

    I'm an MBA student at a top school and I work full time. I talk and work with executives of companies all the time. Don't give me that shit.

    I was asking the questions to try to understand where you were coming from and what your argument was. I see a practical inconsistency between these two statements of yours:

    I've never taken a stand that corporations should be forced to higher anyone.

    Companies need to hire so that people can spend, and they need to pay them a wage that allows them to actually buy stuff.  It has to start with corporations hiring because they are the ones siting on mountains of money.

    So, if you don't want to force companies to hire, what do you propose we do?

    Try looking at things another way.

    by atheistben on Fri Jul 01, 2011 at 10:32:04 AM PDT

    [ Parent ]

    •  that explains a lot actually (2+ / 0-)
      Recommended by:
      atheistben, kurt
      I'm an MBA student at a top school and I work full time. I talk and work with executives of companies all the time.

      it really does.

      IF your so smart, then you should be able to understand the distinction between forced to hire and should hire.  One is coercive and one is not.  What I propose we do is to close tax loopholes, tax havens, and the incentive for money to sit and accumulate.  Or, to put it in another way, provide for an incentive to have the money move around the economy to the benefit of all.  Having trillions in money laying around benefits no one.  We have had periods where tax policy was used to incentivize companies to hire, pay good benefits, expand and reinvest in our society.  The only draw back was America had to go through the greatest period of shared prosperity in recorded history.

      •  Yeah, I agree (0+ / 0-)

        Well, to some extent. We definitely need government policy to incentivize hiring.

        Closing most corporate tax loopholes/havens will mean that companies will have to pay more in taxes, resulting in less money for them to hire people. Granted, the government will get the money and could use it hire people to rebuild infrastructure, but they'll probably just use it for stupid tax cuts for the wealthy. So that's probably a non-starter until you reduce the amount of influence corporations and money in general have over our politics.

        Our government is doing what it can with incentivizing hiring considering the situation. Low interest rates mean it's more attractive to hire, so we're keeping them low (so sitting money doesn't do much accumulating). We're doing payroll tax reductions so the effective costs of hiring are lower than they otherwise would have been. We're offering other incentives. I just don't see much more that our government can realistically achieve.

        I think the fundamental problem with our economy is that we've optimized our production so quickly to levels where vast numbers of people aren't needed in the current economic context like they once were. What we need to do is find a real use for them in the real economy. That's our only realistic ticket out of this mess. If you can find someone who can figure it out, I can find you a new billionaire.

        Try looking at things another way.

        by atheistben on Fri Jul 01, 2011 at 11:24:42 AM PDT

        [ Parent ]

        •  I absolutely agree with this! (1+ / 0-)
          Recommended by:
          atheistben
          I think the fundamental problem with our economy is that we've optimized our production so quickly to levels where vast numbers of people aren't needed in the current economic context like they once were. What we need to do is find a real use for them in the real economy. That's our only realistic ticket out of this mess. If you can find someone who can figure it out, I can find you a new billionaire.

          Our politics needs to catch up with our technology.

        •  Money spent on labor is tax deductible. (0+ / 0-)

          As are most capital investments.  Businesses are generally only taxed on net profits, rather than on total sales.

          Greater corporate taxes certainly affect the risk vs. reward formula, where businesses choose to expand, and how they choose to spend their money, but they don't directly affect how much money a company has to spend hire people, to the extent of my knowledge.

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