Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Your Nightmare

How well do you think those investments will do with no one consuming? Consumers are the engine of the economy. No consumers, no profits on investments.

Since everyone will continue to consume, your strawman is rather poor isn't it.

80% increase in the rate of savings and investment over what we do now only pressures prices downward by the amount of lowered costs to business and productivity increases realised with the release of resouces from repeal of business taxes.

No-one starves, businesses maintain profitibility out of lower costs and higher productivity, the economy grows at subsequent higher rates for the spur of investment and stonger purchasing power of the dollar.

296 posted on 11/17/2004 2:18:01 PM PST by ancient_geezer
[ Post Reply | Private Reply | To 292 | View Replies ]


To: ancient_geezer
80% increase in the rate of savings and investment over what we do now only pressures prices downward by the amount of lowered costs to business and productivity increases realised with the release of resouces from repeal of business taxes.
Again, you see an outrageous number and don't even question it. Jorgenson's infine-horizon model does not accurately portray the savings and investment rate in the short term (or the long term, for that matter). An 80% increase in savings and investment the first year is stupidly unrealistic. Of course, that doesn't matter to you.
297 posted on 11/17/2004 2:32:16 PM PST by Your Nightmare
[ Post Reply | Private Reply | To 296 | View Replies ]

To: ancient_geezer
Since everyone will continue to consume, your strawman is rather poor isn't it.
What strawman. Jorgenson's model shows consumption dropping a large amount.
298 posted on 11/17/2004 2:35:24 PM PST by Your Nightmare
[ Post Reply | Private Reply | To 296 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson