Posted on 09/01/2010 2:28:25 PM PDT by Slyscribe
By at least one measure, government is playing an unprecedented role in the economy: In recent months, more than 30 cents of every dollar in personal income came directly from the government, new Commerce Department data show.
That’s equal to about $3.8 trillion of $12.5 trillion in total personal income on an annualized basis.
(Excerpt) Read more at blogs.investors.com ...
” more than 30 cents of every dollar in personal income came directly from the government, “
Where does one start, when explaining to someone this ignorant, that there is no such thing as “Government Money”.....
I love IBD but how did the editors let this whopper slip through??
go post on the site....I did.....these idiots need to be called out!
Then how can they afford all that government cheese?
...but it’s “deficit neutral”.
WHERE THE HELL IS MY PONY?
” Then how can they afford all that government cheese? “
The Cheese-Fairy-Czar delivers it every Wednesday from Obama’s Stash....
One could start by being less paranoiac. We say that an employer, a corporation pays a salary. Where does it get the money? Well, it's shareholders' money, of course. We merely mention from which hands the paycheck is obtained.
Likewise in the article. It makes the point that 30% of income is received via paychecks from the government. That's all, and that's correct. Where the government gets the money, just as in the case of the preceding example of a corporation, is another question, which is unrelated to the article.
That’s nothing - Stalin paid for one hundred percent, which is manifestly where Obama would like to take us.
Government adds no value, and its original Founding Father-given mandate to see to very limited areas has been bastardized beyond recognition.
” We say that an employer, a corporation pays a salary. Where does it get the money? Well, it’s shareholders’ money, of course. “
In the Capitalism I was raised in, salaries come from the proceeds from the sale of goods and/or services....
Only “Dot-Com-Bubble” companies survived solely on “shareholders’ money”, and then quietly went away when that ran out....
He was delicious. Thanks.
This is factually incorrect.
Legally, all of the revenues are property of the shareholders. Once goods/services are sold, those revenues, whether or not realized, belong to the owners. Liabilities, including payroll, are paid out of the entire pot of shareholders' equity: some or all of it may be revenues, but that is unimportant. This is reflected not only in law but even in accounting. It is false to say that expenses are paid out of revenues: both revenues and expenses are cleared simultaneously into the profit/loss account, which is then cleared into owners' equity.
What you expressed in nothing but hope of the owners, namelt, that their equity will increase, which occurs when expenses, including the payroll, do not exceed the revenues.
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