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9 Reasons This Recession Will Be Good
U.S.News & World Report via yahoo ^ | Friday December 26, 1:59 pm ET | Rick Newman

Posted on 12/30/2008 5:29:13 PM PST by BenLurkin

...

There will be plenty of pain in 2009, as employers cut more jobs, the unemployment rate rises toward 8 percent or higher, and shellshocked consumers curtail spending even more. But beneath the dismal headlines will be some hopeful trends. Here are some of them:

1) More saving. If you haven't heard by now, the savings rate in America is alarmingly low - barely above zero. ...

For once, anxious Americans appear to be putting more of their paycheck in the bank. ...

2) Smarter spending. Most middle-class Americans could find ways to cut their spending by 10 percent without downgrading their lifestyles all that much. That kind of cutback would be a disaster for stores, but it ultimately benefits consumers because frugal spending forces retailers to offer the best possible products and add as much value as possible.

...

3) Great buying opportunities. Nearly everything is cheaper than it was a year or two ago - electronics, gasoline, cars, homes, and especially stocks. That's no excuse for impulse shopping. But it's a great chance to buy things you might need eventually, like a new computer server for your business, or a minivan for your family. Talk about "deflation" might leave the impression that we can now take low prices for granted. Don't count on it.

...

(Excerpt) Read more at biz.yahoo.com ...


TOPICS: Business/Economy
KEYWORDS: editorial
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To: bronxboy

Carter spiked the marginal tax rate to 90% and killed the investors. Increasing taxes always, every time, no exceptions, inflation deflation stagflation, slows the economy. When you suck money out of the hands of the people and companies you keep the economy from growing.


61 posted on 12/30/2008 8:45:19 PM PST by dilvish
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To: dilvish

I tend to agree with you. I hate high taxes, but do keep in mind that no one paid that much in taxes. There were many more tax breaks out there. My Dad paid more in taxes after Reagan’s tax breaks...he lost all his deductions. However, I would give a tax break to those who invest in this country...not overseas. This is where we differ. I would give tax breaks to companies that provide health care also-better than national health care.


62 posted on 12/30/2008 9:08:23 PM PST by bronxboy
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To: dilvish

Do you have any examples...because even food is not always from the US? I’m telling you Ford will not survive without help unless the economy really takes off in 2009. They do not have enough money. Toyota ET AL are only here in order to trick Americans into buying their cars...they would be gone in a New York second if the big three failed. In fact, they would use the supplier issue...Already, they are not going to build/finish the new plants in Tennessee, Georgia and Mississippi. In fact Mississippi won’t even get the money back...some of it’s federal money too. Mississippi gets $1.70 back from the feds for every dollar they pay in taxes...I guess they can afford to keep their taxes low since the feds bail them out every year-nice racket. They can send their Senators and Congressmen out to make firm statements about...self reliance and bailouts-bunch of hypocrites.


63 posted on 12/30/2008 9:16:28 PM PST by bronxboy
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To: bronxboy

Well nobody pays the marginal tax rate because that’s just the rate on the highest level of income. The problem comes in that the highest level of income is where the investment capital lives. The more of that you take the less of that money is available to create jobs.

Give tax breaks PERIOD. It’s not the government’s money. Then when people have more money they can invest as they see fit. If we make this country more conducive to business, if we stop making profit a crime, if we stop threatening “windfall profit taxes” every time a company excels in the market, the investors will invest in America. Again, investment money needs to be earned at every level. Countries need to create an environment where they deserve the money, an environment where businesses can succeed without the fear of having their profits confiscated.

Government shouldn’t be involved in health care on any level. It’s none of their damn business if the company has a benefits program, it’s for the employees to decide if the benefits are good enough.


64 posted on 12/30/2008 9:17:10 PM PST by dilvish
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To: BenLurkin

BFL.


65 posted on 12/30/2008 9:18:29 PM PST by blam
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To: dilvish

In a different time, I would absolutely agree with you, but we live in a time where cheap is all that matters. These investors won’t invest in this country thus why should we lower their taxes? I want a tax policy that benefits this country. I have no interest in benefiting China and India. Did you know Dell is offering an ‘English speaking’ customer care person if you pay up...yep pay extra. I asked would these be American workers. They didn’t give me a clear answer so I bought a Gateway for my kid. I’m sick of the BS.


66 posted on 12/30/2008 9:21:24 PM PST by bronxboy
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To: bronxboy

14.4% of the 2005 GDP was from manufacturing. That’s your example. I don’t throw around anecdotes because they’re meaningless. 14.4%, those are the facts.

Food’s not part of manufacturing, that’s agriculture.

If Ford can’t survive then too bad. Capitalism is mean spirited. Companies need to succeed or fail on their own period, no negotiation, no bailouts, no welfare, no BS. If they deserve my money they’ll find out because I bought their product. If they can’t sell enough to survive then someone else will take their place. Again remember the Detroit 3 got to their position by crawling over the bodies of other failed companies, their failures, if they happen, will create opportunities for others. That’s how business works. The failure of the Detroit 3 will not end automotive demand in America, it will not end the automotive industry in America, it will create a reshuffling and some new companies will rise from the ashes. That’s how capitalism works, that’s how it’s always worked, that’s how it always will work, and screwing with that only creates problems. Propping these failing companies up prevents the opportunity for new blood, and if Chrysler is any example we’ll just be propping them up again in 25 years.


67 posted on 12/30/2008 9:22:55 PM PST by dilvish
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To: bronxboy

That’s not true at all. There’s plenty of success outside of cheap.

Again, you’re putting the cart before the horse. Why should investors invest in this country? We have an environment that’s anti almost every type of business. We have a government that’s addicted to taxation. We’re over regulated in almost every aspect of business and life. And now we’ve got a government that’s deliberately devaluing the dollar to prop up failing companies and prevent new companies from rising. Why invest in a country that’s putting so much effort into killing businesses? It simply is not good business sense to invest in a country like that.

If you want investment money to be in America you need to make America worth investing in. Period. It’s not that tough.

Hey look at that, you just named two companies that build stuff in America. Oh BTW, Gateway blows. Wipe the hard drive, their people can’t install an OS to save their lives. I have friends that used to do MS technical support, Gateway was hands down the worst.


68 posted on 12/30/2008 9:27:43 PM PST by dilvish
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To: dilvish

Again, I do see your point, but I do not believe we could ever make this country as attractive as some third world hell hole that pays their workers very little and allows all kinds of really bad pollution. So for me, it goes like this...you live in American-invest in your own country. Tax revenue only increases when you cut taxes if the recipients are willing to invest in American...Judging from the financial news and how some of these wealthy investors sneer at American workers in general on some of these financial shows, they won’t invest in America so I think they should go live in some of these third world paradises (sarcasm) then they could have taxes as low as they want. I support lower taxes because it’s good for the economy and the country. If this is not true, then forget it. I heard one of our financial geniuses opine on CNBC that tax breaks should be given to the poor because they have no self control and would spend it while the middle class would save it...he finished his speech with an interesting tidbit about how corporate taxes should be cut also...yeah ok sure.


69 posted on 12/30/2008 9:36:35 PM PST by bronxboy
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To: dilvish

I like Gateway. At least they still give you a rescue disk unlike some of the others. My least favorite is Compaq. It is very difficult to change things on a Compaq. My wife installed a new drive at work on a compaq. She was working on the slave master deal when her boss lost patience threw it out and bought her a new computer. She would have done it, but it takes time. By the way, I think Gateway is made in Latvia. Their call center is still in the US or they have better fakers then dell.


70 posted on 12/30/2008 9:44:41 PM PST by bronxboy
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To: bronxboy

Sure we can. Third world hell holes have lots of problems, not the least of which is governmental instability. Everybody fears Cuba 2.0, lots of people took a bath on that.

It’s got to make good sense. Patriotism doesn’t pay the bills.

Let those guys sneer. If we make this country worth investing in they’ll either change their tune or lose their shirts.

Corporate taxes should be cut. Truthfully corporations shouldn’t even be paying taxes. Because the reality is they don’t. Their customers pay their taxes just like we pay all the rest of their bills. Everything a company does that’s even vaguely profitable generates tax revenue. Whether it’s building buildings, buying equipment, employing people, or selling product. It’s impossible for a company to do anything without generating tax revenue. Why make them pay more? Don’t tax corporations and let them be more profitable and hire more people and charge us less. How much has GM paid in taxes this century? How much better shape would GM be in if they had that money in the bank?


71 posted on 12/30/2008 9:46:20 PM PST by dilvish
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To: bronxboy

Compaq’s a nightmare. Really all the bigs in the computer industry blow. Most good sized towns have some local shop, buy from them, you get more for less and you get to look the guy in the eye when making your purchase and if you need help.


72 posted on 12/30/2008 9:48:47 PM PST by dilvish
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To: dilvish

I built the computer for my son-he is a gamer and needed special stuff a couple of years ago. I saved tons of money. But my daughter just wanted a laptop computer...we got a nice one for very little money. I had bought it early during a sale. After the GM loan approval was announced, my wife wrapped it! There would have been no Christmas presents if GM went under as I work for them. As it was, we spent far less than in other years.


73 posted on 12/30/2008 9:57:57 PM PST by bronxboy
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To: bronxboy

I’m too lazy to build. I can, I’ve built an entire QA lab, but I don’t want to. My last machine I speced at the websites of the bigs, printed out the listing, went to a local shop they recommended a few tweaks and I got a better machine for $300 less than the nearest competitor. And I got a firm handshake from the guy when we finished the sale. Going back early next year, time for a bigger monitor.


74 posted on 12/30/2008 10:01:52 PM PST by dilvish
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To: dilvish

You have a point, corporations have armies of accountants making sure they pay little in the way of taxes. Look at the bailed out banks-their tax returns are causing a storm...took the bailouts, but still want to deduct losses...We have had low taxes though and manufacturing has gone down anyway. We can not compete with other countries who have no health or safety standards and who erect trade barriers against us. Lower taxes won’t fix this problem. The so called new service economy will not keep this country prosperous...wages are going down already. Truly, it’s a rush to the bottom.


75 posted on 12/30/2008 10:02:17 PM PST by bronxboy
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To: dilvish

I lived out in Wisconsin last year ....not much around there in the way of computer shops. I lived in Georgia the year before. My kids have been in three different schools in three years. However, I’m not complaining. I still have a job. I was shocked to see the condition of Ohio-truly hurting. After coming here, I didn’t wonder how Ohio could vote for the Dems this year, but how in the world Pres. Bush carried the state twice-he has signed some of the worst trade agreements ever-worse then Clinton and that says something. The GM plant in Janesville WI closed in December. We left in July luckily. I would have been laid off had I delayed.


76 posted on 12/30/2008 10:07:18 PM PST by bronxboy
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To: bronxboy

Our taxes aren’t that low. And some of the drop in manufacturing is just inevitable. One thing people lose track of is just how much of our economy that does good stuff and brings in money from all over the world isn’t manufacturing. The entire software industry, that alone has a lot to do with the drop in manufacturing as a percentage of our GDP, 30 years ago it didn’t exist, now it’s one of the largest revenue industries in the world, and it’s service sector. Entertainment, agriculture, there’s a whole lot of serious revenue generators in this country, including money brought into this country from foreign markets, that aren’t manufacturing. Meanwhile in spite of all of these trillions upon trillions of dollars hauled in manufacturing manages to be 14.4% of the GDP.

We CAN compete with those places, you can tell because we do. The new service economy is a lot bigger than people think, remember it includes the software industry, and it’s not rushing to the bottom at all.


77 posted on 12/30/2008 10:09:07 PM PST by dilvish
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To: bronxboy

People give the president way too much credit for the economy. There’s a whole lot that goes into Ohio’s problems, not the least of which is the snow belt’s population bleed, a lot of people (and therefore a lot of companies) want out of the snow belt. That really hurts local economies. Add some bad management in the industries that aren’t fleeing the snow (that being primarily the Detroit 3 and their supply chain) and there’s a lot of troubles. Yeah some of Bush’s trade agreements had issues, but Ohio has been in deep trouble for a long long time, parts of Ohio have never recovered from the Carter recession.


78 posted on 12/30/2008 10:13:38 PM PST by dilvish
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To: dilvish

software is manufactured-just not here. Also, Gates is always crying for more H1B visa in order to fill jobs America is too stupid to do...I guess.

You need a diverse economy. Software can not replace manufacturing of hard goods. Especially when so much software is in India and other foreign countries. The countries that are cash flush have strong manufacturing such as China and India. A service economy will never provide a stable economy for this country...it will be one bubble after another. Also, look at the trade imbalance. I don’t believe dependence on foreign countries for our needs is the way to go...we will become a pitiful weak country who must depend on others. We should not go down that road. A country that manufactures nothing will not remain a great power. Already the financial pundits are opining that American must get used to not being number 1....we are cutting our own throat. Look at our debt...we must borrow because we have nothing to trade.


79 posted on 12/30/2008 10:19:25 PM PST by bronxboy
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To: dilvish

I work in the Auto industry. I can tell you it’s trade-always been trade. The US Auto Industry was screwed over when the powers that be decided to use trade to reward our ‘friends’ -nations that did things we liked. We should have an economic policy. We don’t. We should not allow other countries to erect barriers against us when our markets are open. Everyone I know here...told me they voted for Obama because he said he wanted to do something about trade. People in this part of the country have watched jobs go overseas for 20 years.We are creating a permanent underclass. This is not good for the country. It needs to stop.


80 posted on 12/30/2008 10:24:17 PM PST by bronxboy
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