This is the point we are debating, point not conceded.
2. the demand for US produced goods goes up substantially
3. businesses would expand to meet the increased demand
With #2 in question, these are based on a flawed premise.
4. $11 trillion in capital would be freed to return home and be invested in expanding our own businesses.
I assume this capital is already being invested somewhere where it is throwing off returns.
These businesses are all going to get smaller by your version of the plan, because you assume that selling prices will drop substantially. So under Fairtax math, the company now selling $10 million worth of goods or services will become a $7.7 million in sales company, who also happens to collect $2.3 million in taxes for the government. And since consumption (or you can call it decadence like some) will be taxed so that could very well have the kind of impact that you would expect-- less consumption.
I don't think you can state with any certainty that the stocks would do much better under FairTax. They could just as well get hammered. But you need to get a handle on what the first tier effects will be on wages, prices, and profit margins before you can begin to estimate what will happen to the stock market which is several steps removed and is based on things like forward growth rates, and investor confidence, and how much money there is to be invested.
"I don't think you can state with any certainty that the stocks would do much better under FairTax. They could just as well get hammered."
I not only CAN state that with certainty, I HAVE done so. If you want to deny the obvious, that is your prerogative. I know of no serious study of the economic impact of taxing consumption that validates your concerns or those of sitetest's. None whatsoever. Zero.
Your denial of the benefits of moving from a coercive to a voluntary tax system in your previous post was quite revealing. Your reasoning is that that difference is inconsequential, since the proposal is revenue neutral. If, after all this time of examining the FairTax, you still don't grasp that fundamental difference, there probably isn't anything that I can say. What I am learning is that some people understand the abstract concept of freedom, and some don't.