Buffett Recruited as Schwarzenegger's Economic Adviser

Bloomberg no url | 8/13/3

[NativeNewYorker]

Aug. 13 (Bloomberg) --Arnold Schwarzenegger, the actor who is running for governor of California, said billionaire investor Warren Buffett will be the financial and economic adviser to his political campaign, the campaign said in a statement.

Buffett, the world's second-richest man, has built a fortune buy buying companies through his company, Berkshire Hathaway Inc. Debbie Bosanek, Buffett's assistant, didn't immediately return a phone call seeking comment.

[HamiltonJay]

Sorry Cyber, the $300 checks did not boost the economy, because of the slow economy, uncertainty etc debt reduction was was it was most commonly used for, it didn't stimulate economic growth or job creation.

There is a huge difference between lowering marginal tax rates, and writing refund checks. Or lowering or raising a consumption based tax or a tarriff.... To have the naive belief that all taxes at all times are all equal and all the same in terms of policy at all times is patently rediculous. That is ideological garbage.

Sorry guys, you have offered nothing to support any allegation that Warren Buffet is a bad choice for the role he is being tapped to do. You have offered spin, but no facts. Buffet is definately an A team selection, just like Wilson.

[CyberCowboy777]

What are you talking about?

Your going to say with a straight face (and against almost all economist) that 45 Billion dollars has no effect on the economy?

And that is just the $300.00 checks. Then we have $400.00 per kid (I got $1,200.00 of my money back, I know those that got $1,600.00) and the Tax cuts.

We have had rebates and cuts, both effecting the economy, with more to come.

You are so concerned with covering for Arnold you have sold out Reaganomics.

Dude! Get your soul back, it aint worth it.

[gogeo]

You have GOT to be kidding. I mean, I know many on FR sold their souls in the past week, but this just smacks of desperation.

Those who disagree with you sold their souls?

[gogeo]

Useful? You mean like Buffett's opposition to a capital gains tax cut? What useful advice could this billionaire insider possible offer on how to stimulate small business to grow and entrepreneurship from the bottom up. He's got "his" thank you. He has a lot of business background. He's also well respected on Wall Street. I think that next time he says something like property taxes are too low in California, he should be pushed out of an airplane without a papachute.

[PeoplesRep_of_LA]

You have GOT to be kidding. I mean, I know many on FR sold their souls in the past week, but this just smacks of desperation.

Those who disagree with you sold their souls?

Sorry, no strawmen allowed. They sold their souls because they are willing to attach themselves to a non conservative candidate- as Warren Buffet's politically idiotic claim against Prop 13, and Ahrnold's failure to come out against him today proves.

The concept of Supply Side Reaganomics are beyond me and my agreement. They are also beyond Reagan for that matter.

Also, they are beyond Ahrnold Bloomberg...and you.

[HamiltonJay]

No, I am saying its insane to hold the inane belief that "ALL TAX CUTS AT ALL TIMES ARE GOOD SOLID ECONOMIC POLICY!" Those $300 checks in what 2001 or whatever did not stimulate job creation or economic growth... you don't have to be an economist to know 2001 and 2002 were largely dumpers for job creation and business expansion in the United States. If you think they were.. better look again at the numbers.

I have not sold out "reganomics" In fact I pointed out succinctly that there is a large difference between reducing marginal tax rates and just cutting refund checks... a point you clearly seem to have missed. Portraying all tax reductions as the same as marginal tax rates reductions is nonsense.

One time checks do nothing to spur investment, or expansion. No company is going to go open new factories or hire new employees based on a one time check bounce.. it would be unwise and foolish for them to, knowing full well they will likely need to lay them off next month. Sorry if you can't see the larger picture, that's not my problem. I could cut a check for 10k to every tax payer in america, and I would not "CREATE" a sustained economic boom, at best a temporary spending expansion that would contract right back like before after that $$ was gone... and that is not sound long term growth policy.


There a hundreds of different types of taxes on thousands of things and they all are not "marginal tax rates" that enact them.

I don't know why I am wasting my time, it is blindingly obvious you just can't seem to accept that not all taxes or tax policies are covered by some theory based and hinged on one type of tax.

But getting back to the real topic of the thread which was your repeated allegations that Buffet is a socialist and unable to do the job he has been tapped for... you still haven't offered one iota of proof of this allegation other than political dogma, which sorry is not fact.

[CyberCowboy777]

Job creation and business expansion are not what held up the economy.

Consumer spending has been the fuel and that HAS been affected by the Tax cuts and Rebates.

[HamiltonJay]

Job Creation and Business Expansion is the ONLY thing that can expand the economy, your failure to recognize this is borderline pathological.

One time checks don't create jobs, or higher wages, both of which are needed to create and sustain any sort of growth. Refund checks do not do this, they also don't help companies loosen the purse strings, which is what really needs to happen to expand the economy. If the only job growth happening is outsourced IT to India, you don't have a growing or strong economy.

[CyberCowboy777]

Tax cuts increase spending dollars, 43 Billion worth is allot of pocket change.

People who spend money spend in at businesses.

There are a few issues with job right now, outsourcing and efficiencies are two of those issues. Thoae are real.

That does not take from the fact that the jobs we do have are due to consumer spending and tax cuts stimulate that.

While I do not claim that tax cuts alone fix economies you refuse to admit the fact that tax cuts can not only stave off a worsening economy, it is also a way to increase the single largest contributing factor in the US economy.

You are blasting a known and accepted step in economy building in an attempt to defend Warren Buffet.

Warren Buffet! That alone shows who here is dealing with reality.

You are defending Buffet to defend Arnold and I understand why. But you should really go back to Conservative Fiscal policy and defend Arnold with his positives, not putting makeup on his sows.

History proves the effectiveness of Tax cuts as a step in recovery and stimulation, your not going to win this argument with history.

[HamiltonJay]

Bull, you are again ignoring the details... I have never said cutting tax rates doesn't create stimulous, I stated one time checks don't... DETAILS are important, and you keep ignoring them.

Cutting rates, increases disposable income, not one time checks... one time checks don't do squat to stimulate growth! No company is going to hire more workers, invest in new infrastructure or inventory production for a temporary bounce, it just doesn't work that way. If you believe it does, then you have never sat in meetings where these types of decisions are made.

Growth comes through increased and sustained disposable income, not just a one time increase. This is why rate cuts do stimulate expansions, but one time checks don't. Corporate spending needs to expand, and its not going to expand for $300 checks.. they don't hire workers, or sales force, etc for temp bounces.

One time checks, do not salve they may temporarily halt reductions, but they don't HEAL the problems.

As to "defending Buffet for Arnold" that is hardly my reasons for what I have said, but if that makes you sleep better at night, then believe it. I don't think Buffet is unqualified for the position he's been tapped for, I don't see any evidence from you or anyone else, that is sustainable and shows he is. I do think Ahnold is the R's parties only chance of winning this recall, at least with any sort of mandate that will keep the cali legislature from simply stonewalling, for many reasons I have stated here as well.. but that's hardly why I challenge your bashing of Buffet.

Personally I don't live in California any longer, thank goodness, and as I have stated on this site MANY times over, I don't think the recall is a good thing at its very essense for Republican democracy, or long term for California, for a multitude of reasons. So if California Republicans want to shoot themselves in the feet again, or elect Arnold, or elect a Democrat or heck even decide to keep Davis, that's really their call.

However when someone bashes what economically can be classified as nothing less than an A player as a poor choice to handle the money, that's definately spin that just don't fly.

[HamiltonJay]

Oh and just for the record:

The NET worth gain in 2002 for Buffet's company was 6.1 BILLION, an 10% increase over the year before.

Since the current management took over 38 years ago, the per-share book value has gone from $19 to $41,727 or a rate of 22.2% compounded annually. So, you wan't to really argue that Buffet doesn't understand or know economic issues, or can't handle money?

Show me any other company that can make that claim.

Seems to me, a state that is what now about $40 Billion in the hole, has a whole lot to gain from someone like Buffet looking at the numbers.

But if you think he's just some liberal who will bankrupt the state and has no business near the books... well, then whats a little think like track record matter.

[CyberCowboy777]

Talk about details?

The $400.00 tax rebates are a sustained tax cut. The Child Tax credit has been raised - each year each family will save another $400.00 a child. That is a Tax CUT, not a one time check. You use to take $600.00 per child and now you take $1000.00 per child, a cut in your taxable income. A tax cut.

On top of that we have rate cuts. Each tax paying American is paying less in federal taxes this year than last, and more cut will come.

You focusing on the one time $300.00 dollar check while I have spoken about the one time checks, the Child Tax credit and the rate cuts as a package in conjunction with other policies.

Your ignoring the facts to defend Buffets anti-tax cuts remarks.