DOW to 20,000 today?!!

[Woobie]

He didn't address it because, it's depended on place. Conventional economic wisdom is to pass tax cuts during down times to spur buying. If you pass a cut during a boom (possibly overheating the economy), and the market crashes, you are going to have issues. You can't double down with another cut. The result is a longer and more severe recession, approaching a depression. The reason why it's location specific, is because some nations will do what is necessary to pull themselves out of such; that would be by slashing govt spending. Many of the first world economies in Europe would do this. This would not happen in the United States. Milton Friedman explains it as:
"Suppose the government spends $400 billion, and raises $350 billion in funds labeled taxes. Who do you suppose pays for the $50 billion difference? The Tooth-Fairy? Hardly. You do."
So, it is reasonable to keep tax cuts in your back pocket until they are actually needed, because the potential downside is enormous.

So you told me to look him up, and then admit he doesn't address it?


You can't escape that little triangle on the suply and demand graph marking the inefficiency created by taxation. Reducing that inefficiency is a good thing, no matter when you do it. Markets might go through ups and downs, and the government might run budget deficits in the near term if there is a downturn in the economy (due to other factors, of which their can be many). But the economy will, on balance, be healthier than it would without the reduction in economic inefficiency. And that is basically what Friedman is saying in the quote you provided. The government will run a deficit which will then require some time of fix, or (gasp) patience.

 

[Kutnupe14]

So you told me to look him up, and then admit he doesn't address it?


You can't escape that little triangle on the suply and demand graph marking the inefficiency created by taxation. Reducing that inefficiency is a good thing, no matter when you do it. Markets might go through ups and downs, and the government might run budget deficits in the near term if there is a downturn in the economy (due to other factors, of which their can be many). But the economy will, on balance, be healthier than it would without the reduction in economic inefficiency. And that is basically what Friedman is saying in the quote you provided. The government will run a deficit which will then require some time of fix, or (gasp) patience.

Ok

 

[Woobie]

Ok

You can pretend whatever you want, but misquoting Friedman does not a sound argument make. Don't make false statements and expect to get corrected.

 

[foszoe]

So you told me to look him up, and then admit he doesn't address it?


You can't escape that little triangle on the suply and demand graph marking the inefficiency created by taxation. Reducing that inefficiency is a good thing, no matter when you do it. Markets might go through ups and downs, and the government might run budget deficits in the near term if there is a downturn in the economy (due to other factors, of which their can be many). But the economy will, on balance, be healthier than it would without the reduction in economic inefficiency. And that is basically what Friedman is saying in the quote you provided. The government will run a deficit which will then require some time of fix, or (gasp) patience.

Sounds like deadweight loss

 

[Kutnupe14]

You can pretend whatever you want, but misquoting Friedman does not a sound argument make. Don't make false statements and expect to get corrected.

Ok

 

[Woobie]

Ok

Lol

 

[JettaKnight]

Ok

Lol

Runners.

 

[rhino]

I wonder why we even have taxes. If we can run a $9 trillion deficit per year (not ignoring social security and medicare) and bring in a few trillion in taxes, why does it even matter?

hoosierdoc just dropped a logic bomb!

 

[hoosierdoc]

hoosierdoc just dropped a logic bomb!

right? And while running ten trillion dollar deficits annually we "shut down the government" over $50 billion in funding for this or that. Just stupid.

 

[SnoopLoggyDog]

S&P 500 is down 4.5% since the correction started. Not bad, given that the market has been on a two year surge. I am curious if it will continue to stall out over the next couple of months? Overall, the economy seems strong, with jobs moving back to the USA and unemployment low.

 

[hoosierdoc]

 

[KG1]

 

[Dr.Midnight]

Anyone else watching the DOW? We are soooo close to the record high.

 

[CampingJosh]

Anyone else watching the DOW? We are soooo close to the record high.

No. It's a bad metric, so I don't care about it at all.

 

[rhino]

Anyone else watching the DOW? We are soooo close to the record high.

Meh. I had to sell all my mutual fund shares, so I don't pay attention anymore.

 

[Dr.Midnight]

Meh. I had to sell all my mutual fund shares, so I don't pay attention anymore.

I'm aware of your situation, and I'm sorry you've had to focus resources elsewhere.

 

[rhino]

I'm aware of your situation, and I'm sorry you've had to focus resources elsewhere.

Thanks... I actually wasn't intentionally being a Debbie Downer (this time). Sorry!

 

[Dr.Midnight]

Thanks... I actually wasn't intentionally being a Debbie Downer (this time). Sorry!

 

[RugerRog]

I'm more interested in the S&P 500 and Nasdaq hitting new highs vs the Dow, as that's where my investments are. Yeah Friday was a good day.

 

[Hawkeye7br]

Yeah, to the people who think the stock market only benefits the rich...it benefits every pension plan across the country including most teachers, police, and firefighters. The fact that I'm way better off than my parents were is not lost on me. I don't have to rely on my children as I age, and I don't have my grown children moving back in with me. I also don't have to support my young neighbors or my former co-workers. Only federal employees don't directly benefit from the market, and that's because they largely have jobs guaranteed for life and a pension that is guaranteed funded by taxpayers.