hoorah! someone who understands basic economics!

Post #7,390 by boxley 8/31/01 9:46:22 PM Reply	hoorah! someone who understands basic economics! gummit can only supress unwanted trade, shift costs from one sector to another but has fsckall to do with productivity, inventory stocks and prifit/loss. thanx, bill Our bureaucracy and our laws have turned the world into a clean, safe work camp. We are raising a nation of slaves. Chuck Palahniuk
Post #7,448 by Decco Dave 9/1/01 11:00:23 AM Reply	Capital Formation You are ignoring the impact of government policies on capital formation. High taxes or interest rates or constrictions on the money supply restrict the availability of capital. Without capital businesses cannot expand or create new ventures. I'd agree with BP that for the most part the economy is out of the control of politicians. I'd just add the condition that they don't know what impact their policies will have and so cannot be said to be in control.
Post #7,473 by boxley 9/1/01 9:17:33 PM Reply	the availability of capital has nothing to do with govt while the fed controls the interest rate it only controls the central rate. Capital with 50% interest can be raised if the venture needs to. They only control consumer spending and rates not business. Private money is always available for the right projects. thanx, bill Our bureaucracy and our laws have turned the world into a clean, safe work camp. We are raising a nation of slaves. Chuck Palahniuk
Post #7,481 by bepatient 9/1/01 11:22:00 PM Reply	There is a small effect... ...when you take a combination of tax policy and interest rates...you can >marginally< affect capital formation....usually in timing only...by delaying certain spending... However, that effect is secondary..as most major capital formation is a function of the underlying competitive conditions in the market... For example...IF there is a demand for 1 million pounds of di-methyl doorknobs and production capacity of 700000 pounds....someone, somewhere will fill that capacity void...OR...if a technology advancement is made that allows a process to improve into a low-cost position...that capital formation will occur REGARDLESS of government policy...assuming...of course...that the policy is within established norms. (30-50% tax rates...5-15% interest) You were born...and so you're free...so Happy Birthday! _{Laurie Anderson} [link\|mailto:bepatient@aol.com\|BePatient]
Post #7,799 by jb4 9/6/01 10:45:45 AM Reply	So lemme get this striaght.. [...] but has fsckall to do with productivity, inventory stocks and prifit[sic]/loss. So the "tax cut" would have absolutely nothing to do with "improving the current business climate" (or some other such mealymouthmumblefuck), according to your postulate. Just wanted to get that straight.... jb4 (Resistance is not futile...)
Post #7,834 by boxley 9/6/01 12:56:16 PM Reply	according to me yeah, propaganda value only Our bureaucracy and our laws have turned the world into a clean, safe work camp. We are raising a nation of slaves. Chuck Palahniuk

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