

A 1% Tells the Truth About Job Creation - johnjlocke
http://digbysblog.blogspot.tw/2013/06/a-1-percenter-tells-truth-about-job.html?m=1

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coolj
"A random guy with some money and no particular qualifications to address
economic theory, addresses economic theory"

~~~
CleanedStar
Particular qualifications to address economic theory? What is this, quantum
mechanics?

There is a fight and a struggle over how the pie is divided up. To call the
arguments around this "theories" which one must be "qualified" to discuss, is
a laugh. It's more akin to theologians arguing over how many angels can dance
on the head of a pin.

Most economic "theories" boil down to who the money should go to. In your
world, only people with "particular qualifications" are allowed to have a say
on this topic. Also, what a surprise, the "qualified" people always say that
what should be done is what is good for the heirs who bankroll their think
tanks, endow their chair at their schools and whatnot.

There hasn't been any mainstream study of economics for well over a century.
There has never been actually. In the time of Adam Smith, there was an area of
study called political economy in which, right or wrong, there was an honest
attempt to study the topic. Although honest mainstream inquiry stopped before
it happened, when "political economy" was tossed and "econom-ics" (like phys-
ics? mathemat-ics? genet-ics?) came into being, the field had already been
completely overrun by BS.

Read Adam Smith, Ricardo, Say, Mill etc. if you're interested. There is no
living mainstream "economist" who is not a complete BS artist.

~~~
coolj
> In your world, only people with "particular qualifications" are allowed to
> have a say on this topic.

In the real world ("my world"), economics involves multiple actors in complex,
dynamic relationships, which require precise, controlled examination, in order
to derive theories that enable accurate predictions and insight into causes
and effects.

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cynicalkane
_In the same way that it’s a fact that the sun, not earth is the center of the
solar system, it’s also a fact that the middle class, not rich business people
like me are the center of America’s economy_

I think the author is slightly overestimating the extent to which he
understands economics. No doubt the author has some very sound data to support
this thesis, although he has chosen to support it with anecdotes and incorrect
economics instead.

For instance, he complains about the 39% top marginal rate on middle-class,
ordinary Americans. Now, it is an _actual_ fact that people who make this top
marginal rate are not "middle class" by many common definitions. In his
imaginary pro-worker universe which he incorrectly labels "Keynesian", that
rate would also be a lot higher.

~~~
mapt
Most people point to the reduction in the top marginal rate as the primary
mechanism by which the progressive income tax has been weakened and has
contributed to income inequality. Others will say this is all bunk and capital
gains becoming a primary compensation mechanism is what has caused the
destabilizing imbalance.

There is another thing we've been doing, though - Reagan in 1986 dramatically
reduced the _boundary of the top tax bracket_ versus its trajectory in the
rest of the 20th century, to _5%_ of what it had been. Until then, you could
reasonably argue about trashing the millionaire's extra yacht so that the
$200k-ionaire could succeed. Later politicians raised it somewhat, but never
to levels approaching the 50's - 70's. We appear to have tied it all together
in order to mobilize the high-skill working people & entrepreneurs to defend
the truly rich from having to contribute a larger share.

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tptacek
I agree with I think this entire post, strongly, but would still like someone
to explain how it's appropriate for HN; it reads like a top-tier /r/politics
post.

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goofygrin
The point that drove it home is that businesses aren't in t business of
"creating jobs." We're in it to make money. I hire when it hurts. I don't hire
when I have an excess of cash.

If tax rates were higher I'd hire people, buy office space or equipment.
Anything to keep me from having to just gift it to the idjits in Washington.

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skybrian
Why the middle class in particular? If our economy is based on spending, then
it like giving money to anyone who will spend it is the answer. Could be poor,
middle class, or rich, so long as they don't just put it into their bank
account.

(And yes, banks could theoretically loan out the money, but currently they
won't.)

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rd108
Here's the TED talk ("censored" from TED) A TED Talk on Income Inequality by
Nick Hanauer
[http://www.youtube.com/watch?v=iIhOXCgSunc](http://www.youtube.com/watch?v=iIhOXCgSunc)

