Skip to comments.Why Iím Draining My Savings to Stimulate the Economy (not satire?)
Posted on 07/20/2013 12:47:16 PM PDT by dynachrome
For several years, the economy limped along because of me. I scrimped on everything, did it myself if I could do it myself, and hoarded money out of fear that the recent recession had another dip or two left in it.
Things are different now. Ive turned my savings into spending, rung up thousands of dollars worth of purchases on my credit cards and in the process paid a lot more in taxes. And Ill probably keep spending like this until I nearly run out of money.
In other words, Ive bought a house.
All told, I could easily end up spending $30,000 this year that would have stayed in the bank if I hadnt bought a home. (Thats in addition to the down payment on the house itself.)
(Excerpt) Read more at finance.yahoo.com ...
I hate Keynesians.
more like - spend it while its still worth SOMETHING
The thing is the people in government who say they are Keynesians are lying. Keynes himself said the government should harvest capital heavily from the citizens in the good times AND give it back in the bad times.
These so called Keynesians never get to the second part. Oh they hand out a few baubles and beads to satisfy their base and special interests but they never cut back taxes and they never give back to the people they harvested the capital from. They just keep spending on pork and yelling the rich aren't paying their fair share.
A true ignoramus...
Does he really think the money one has in a bank as a savings is dollar bills sitting in a vault somewhere?
Is this a New York thing? Where I live the deed transfer tax is 0.3% + $0.50, so only $600.50 for a $200,000 house. Recording a mortgage costs $28.
I refuse to be the takers' maker. I'm done with my high pressure career - on to something simple and enjoyable, no matter what the salary.
I hate Kenyans too.
California thinks the same way. While the population in California decreases, the politicians just figure that the tax base is shrinking. It is not shrinking, it is evaporating. California gives away more money in unemployment and welfare per “client” than neighboring states. So welfare junkies, not being stupid, just lazy are moving into California as those who are hard workers and are being tapped to death move out. This is a double whammy that will drive California into an early grave. Its economy will be dead and buried long before the RATS in control ever get a whiff of the extent of the problem.
The producers are voting with their feet just like the leaches. Woe is California!
Snip: A state-mandated audit of Willard & Kelsey Solar Group revealed the defunct solar-panel manufacturer could not account for how it spent $1.3 million of a $5 million loan funded by Ohio taxpayers.
Snip Willard & Kelsey Solar Group, LLC received $10 Million in federal stimulus money back in June 2009. (Fox Toledo). The total amount of federal stimulus dollars given to Ohio was $150 million so this represents almost 7% of the total Ohio received. It was boasted as a huge job creator, remember that?
Stimulus Money Received
1. $5 Million R&D loan from Ohio Department of Development
2. $10 Million loan from Ohio Air Quality Development Authority
3. $3.3 Million Job Creation Tax Credit
4. $701,000 grant to train 50 current + 250 new workers
Yeah, somehow he sees deposits in the bank as fortuitous for him when he wants a mortgage, but he seems to have a disconnect re: what his savings deposits might do when leveraged by banks for others.
Looked at the US Dollar Index lately? It is worth something - unlike the losses people are taking who bought gold and silver recently.
Buying a house is a sound move for most people. Want this guy is talking about however is a mystery to me.
he thinks he saved the economy
Consumption expenditure is buying not for the purpose of subsequent selling.It is buying for any other purpose than subsequently selling.It is unproductive.It constitutes the using up of money.Funds that are unproductively expended, as a rule, either do not return at all or return only in a smaller amount, and thus are simply consumed.Funds that are unproductively expended and consumed simply disappear from their owner's possession in the long run.
Productive expenditure is buying for the purpose of subsequently selling.This is the type of expenditure that stimulates the economy and accumulates capital. Accumulation of capital is a necessity for economic progress and increasing prosperity.Increased saving (which is not the same as hoarding) provides the funds for investment, which is the first step in increasing productive expenditure which increases capital accumulation and begins the pathway of capital formation.In order to increase saving, one must make the choice to decrease consumption
Increases in taxes is like increases in consumption because it decreases the amount of funds that would be saved. Anything that decreases saving has a negative effect on the rate of capital accumulation and economic progress and rate of increase in prosperity.
Hey, Newman, Ive an automatic 45 I would like to recommend that you get to play Russian Roulette with.
Stimulate the economy even more by breaking every window in the house
worked for Debtroit