PS still going through the paper to see if they get national savings correctly.
Federal Deficits – Net Imports = Net Private Saving
This is not a hypothesis. It’s not a theory. It’s not my opinion or anyone else’s opinion. It is an accounting fact. In a closed economy (where money exports equal money imports), your annual savings, plus my annual savings, plus everyone else’s annual savings equals annual federal deficit spending, to the penny. In such an economy, Federal Deficits = Net Private Savings.
This means, if the federal deficit is reduced $1, our combined savings will be reduced by exactly $1 — not $.99; not $1.01 — exactly $1.00.
Today, the politicians in Washington are talking about a $4 trillion (!) deficit reduction. That means our savings will be reduced by $4 trillion. There are about 310 million people in America. A deficit reduction of $4 trillion will reduce the savings of each man, woman and child in America by an average of $12,900.
I watched the debate until about 10P, when I was pretty sure O had R whipped. My impression was the opposite of sammy’s, and I suspect most Republicans’. I’m a Democrat and there you have it. NancyO
http://www.balloon-juice.com/
Take a look. Says it all. NancyO
THE BUSH TAX CUT AND NATIONAL SAVING – NBER Paper
In 2001, joint filers on the AMT with incomes between $150,000 and $346,000 lost 25
cents of exemptions for each added dollar of income (including capital gains). This had the
effect of raising the marginal tax rate on income within this broad range by one-fourth of the
statutory AMT marginal tax rate, which was 28 percent for most affected taxpayers. Hence, a
dollar of capital gain income was subject to a marginal tax rate of 27 percent (20 + .25 x 28), not
20 percent. With more taxpayers pushed onto the AMT, capital gains are potentially subject to
much higher marginal tax rates. It is doubtful that President Bush intended to increase capital
gains taxes, but this is one result of his plan.
Mcwop
http://www.nber.org/papers/w9012.pdf?new_window=1
PS still going through the paper to see if they get national savings correctly.
Federal Deficits – Net Imports = Net Private Saving
This is not a hypothesis. It’s not a theory. It’s not my opinion or anyone else’s opinion. It is an accounting fact. In a closed economy (where money exports equal money imports), your annual savings, plus my annual savings, plus everyone else’s annual savings equals annual federal deficit spending, to the penny. In such an economy, Federal Deficits = Net Private Savings.
This means, if the federal deficit is reduced $1, our combined savings will be reduced by exactly $1 — not $.99; not $1.01 — exactly $1.00.
Today, the politicians in Washington are talking about a $4 trillion (!) deficit reduction. That means our savings will be reduced by $4 trillion. There are about 310 million people in America. A deficit reduction of $4 trillion will reduce the savings of each man, woman and child in America by an average of $12,900.
http://rodgermmitchell.wordpress.com/2011/07/19/the-single-most-misunderstood-fact-in-all-of-economics-it-will-blow-your-mind/
Mind blowing indeed, and against the grain of conventional wisdom.
Romney kicking Obama’s ass again.
Again the optics are horrendous. You have a guy who has never accomphlished anything in his life debating someone who has done a lot.
you poured a lot into this empty vessel. A lot that you have to be sorry for.
I watched the debate until about 10P, when I was pretty sure O had R whipped. My impression was the opposite of sammy’s, and I suspect most Republicans’. I’m a Democrat and there you have it. NancyO