Tell me if I'm wrong /pol/ economists.
PREMISE: lowering taxes on businesses helps them expend
Reasoning..
>Lower taxes on businesses => less likely to relocate offshore
>Less likely to relocate offshore => expand locally
>Local expansion => increase of jobs
>Increase of jobs => increase of average net worth
>Increase of average net worth => increased buying power/consumption
>Increased buying power/consumption => increased income for businesses
>Increased income for businesses => increased production
>Increased production => increased need for employees
>Increased need for employees => expanding business
>Expanding business => more jobs
More jobs = repeat cycle
>???
>fix poverty and revive middle class
Am I being too simplistic or idealistic? Am I missing something?
bumping for interest
>>68908885
>Lower taxes on businesses => less likely to relocate offshore
I'm afraid this doesnt work. You are suggesting that you can lower the taxes to the point where it is cheaper for the bussiness to produce their, lets say, t-shirts in canada than in fucking Taiwan? No way.... They dont have to pay shit to their taiwanese workers, nor give 2 fucks about their work conditions since the laws there are very lax.
>>68910800
So what kind of incentive would work?
>>68908885
I'm not a economist but that seems about right
>>68911027
I'll give you a quick example:
http://www.wsj.com/articles/chinese-transform-greek-port-winning-over-critics-1416516560
Read it
>>68908885
You are right, the less friction in the economy the more wealth it creates.
Governments only redistribute wealth in an inefficient way.
But as long as ordinary people can't hide their wealth from gibsmedat voters that doesn't matter much and muh feelings will prevail.
>>68911611
Moral of the story:
>The port controlled by the chinese was waaaay more successful than the greek ones.
>This could only happen because the work conditions and the pay is way worse than the ones the greeks had before the chinese took over
The answer, in my opinion, is not to lower the taxes into an absurd amount to make bussiness more profitable, because this forces the government to earn less money and get debt.
Besides, we are in a financial crisis. Its time unions stfu and lower work conditions, cause people from china and south asia are willing to work more hours, harder, and earning less than us.
And this means that we gotta either focus on doing a better work than them, or we'll have to lower our expectances
>>68908885
You're not wrong
It's one of the big reasons why 14.5% rand plan was so highly viewed and why Rato stole it after rand dropped out
>>68911981
>the less friction in the economy the more wealth it creates.
That is true, and while I agree that lowering taxes is a good idea and does help the economy, there are a lot of states (For instance, Spain) who just can't afford to earn less money than they are now, cause they are drowning in debt. This also goes for Canada since Trudeau sold all the gold reserves
>>68911027
I'm no economy expert, go to /biz and ask there, they'll probably give you a better answer
>>68911611
>http://www.wsj.com/articles/chinese-transform-greek-port-winning-over-critics-1416516560
>To Read the Full Story, Subscribe or Sign In
...
>>68912028
Good point. The government can't earn less money due to the debt. Fair enough.
That pretty much BTFOs socialists, since the government pretty much redistributes the wealth, so they're still in debt.
So what can we do for that? How can we incite businesses to help the government debt without hurting their expansion?
>>68913742
Well damn, didn't even know there was that board.
