Quote:
Originally Posted by dyna mo
the other part of this that doesn't make sense is if wages rise, then people have more $ in their pockets to buy more, not less.
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Without a productivity gain, if wages rise prices will have to rise too. Your selling price normally anticipates a profit (after taxes). Taxes are another big issue.
I am anticipating a national sales tax within the next 5 to 10 years to pay for social benefits, a national healthcare and toward deficit reduction. This might add 10% to 20% on the selling price of all goods. Combine that with wage demands and lower cost goods importation restrictions: the USA will become a much poorer nation with consumption taxes hitting the lower and middle classes hardest. Conversely, if we over tax capital gain to pay for social benefits, a national healthcare and toward deficit reduction: Investments and Venture Capital would be much harder to find.
We are between a rock and a hard spot and no candidate (so far) is addressing the real economic issues and a few are uttering total populist bullshit -- that I for one am not buying.