I asked you about wages.
You put up a bunch of stuff about dissaving and taxes. You blamed the dissaving on tax increases by noting their coincidence. Which may or may not be causally linked. It looked like dissaving actually began about 1983.
Quoting your material:
But, families increased consumption spending and, to cover this, they reduced savings to historic lows and increased household debt to historic highs.
But did they really increase spending, or did real wages begin to fall under the impact of NAFTA and immigration?
How about you tell us how NAFTA affects wages post 1992?
But did they really increase spending, or did real wages begin to fall under the impact of NAFTA and immigration?
Try, manufacturing leaving the US due to an anti-business climate and high tax burdens. Real wages fall, when saving and investment no long support capital investment applied to plant modernization and technological advance.
Why should manufacturing have reason to remain in the U.S. when red-tape, high tax costs, and regulatory environment assures failure in international markets inspite of US labor being the most productive in the world.
Something to think about:
Chairman of the House Ways and Means Committee,
Rep. Bill Archer (R-TX)
August 12, 1996
- "A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America."
Tax reduction results in return of assets to US.
U.S. Companies Bring Overseas Profits Home; May Create Thousands of Jobs
WASHINGTON (AP) -- Led by drug makers, American companies have started announcing their plans to use a temporary tax break and shift back to the United States billions of dollars in profits that have been stashed abroad.
An incentive to invest in the U.S. economy -- that's how lawmakers promoted the short-term relief that lets companies avoid as much as 85 percent of the taxes they might otherwise pay on earnings abroad.
But did they really increase spending
I suggest you spend some time studying Personal Consumption Spending data in the NIPA data series.
Yes Americans really have increased there spending to the deteriment of personal savings and investment.