Buyeyeglassesnow: Making Money Jobs

A standard right wing talking point is that tax cuts for the rich and corporations create jobs.

This is, actually, true. They create jobs overseas.

The tax cuts’ two bills, in 2001 and 2003 – changed laws so that personal income tax rates were reduced, exemptions for the Alternative Minimum Tax increased, and dividend and capital gains taxes also cut.

Yet in the debate, it seems of no moment to either side whether the tax cuts were effective in achieving their goal of spurring business investment and making the US economy more competitive.

Our own examination of US non-residential investment indicates that the reduction in capital gains tax rates failed to spur US business investment and failed to improve US economic competitiveness.

The 2000s – that is, the period immediately following the Bush tax cuts – were the weakest decade in US postwar history for real non-residential capital investment.

Not only were the 2000s by far the weakest period, but the tax cuts did not even curtail the secular slowdown in the growth of business structures.

http://crooksandliars.com/ian-welsh/tax-cuts-rich-create-jobs-outside-us

The logic of this is simple enough. If you have money to invest, you're going to invest it where it'll return the most. Right now and in the past couple decades that is either in leveraged financial games, or it is in economies which are growing fast and have low costs. The US does not have high growth compared to China or Brazil or many other developing countries. It has high costs compared to those countries as well.

If you can build a factory overseas which produces the same goods for less, meaning more profit for you, why would you build it in the US?

Until that question is adequately answered, by which I mean "until it's worth investing in the US", most of the discretionary money of the rich will either go into useless speculative activities like the housing and credit bubbles, which don't create real growth in the US, or they will go overseas.

There are a number of ways this question can be answered.

You could slap taxes on foreign capital flows;

you could slap tariffs on foreign goods produced in low cost domiciles so that companies have to produce in the US to have access to the US market;

you could push industries which are hard to outsource but don't actually decrease American competitiveness. The housing bubble increased the cost of doing real business in the US by inflating real estate costs. A massive buildout making every building in the US energy neutral or an energy producer would increase US competitiveness.

you could try and do what America once did: have a tech boom. If the future is being produced in a country then everyone has to invest there and when things are changing fast you can't offshore production, because speed matters and offshoring is slow. This is why real wages increased during the tech boom of the 90s.

There are other answers as well, but the point is simpler: you must answer the question "why invest in the US instead of a low cost, high growth country?" Until you answer that question tax cuts will not only not do any good, but in a sense will do harm, by increasing the speed at which jobs are offshored out of America.

Introduction:

I am a 22 year old gay adult living in Calgary, Alberta Canada. I have a one year technical diploma in Computer Engineering and Web Development. Lately I've had a number of issues in my life that I haven't been able to necessarily ask my family or parents about. So I am hoping I can get your opinion.

Career:

As I mentioned above, I am in the computer industry. Right after I finished my degree I was able to score a job with a fairly great employer. That lasted three months. I quit because the staff where extremely hard to work with on a daily basis. I was teased all the time about my sexuality and although it didn't cross the line as "sexual discrimination" it made the environment way too tense for me. My second job was with a marketing agency as a consultant. It lasted only a month because the company went bankrupt. Since then I've been doing freelancing. I get jobs here and there, basically just enough $ to keep food on the table. I've been applying for jobs for months, and I get interviews but frankly I don't stand a chance because there are so many unemployed "senior people" who are willing to work for my starting wage. I've been to two careers counselors who have not helped me in any kind of way. I'm frankly not sure what to do now. If I go back to college, I'll need to pick an entirely different industry which seems like a huge waste of my degree. Maybe business or marketing. Apparently there are cities that are experiencing growth in my industry but they are far away from where I live. My question is, should I continue to slug it out apply for jobs, move to a new city or go back to school? Also, in your opinion how many years of college is really sufficient to feeling "secure" and making a decent wage in most industry's?

Relationships:

I have trouble meeting boys who meet my criteria locally. By "criteria" I mean, they must be interested in a monogamous relationship because I don't want to get sick and secondly they must be within 5 years of my age and self sufficient enough to be independent. All my relationships have been long-distance.

Drew - I met Drew online two years ago. We instantly "connected" and would talk at-least once a day using video chat because he lived so far away from me. Finally met a year later in person. Things didn't exactly go as planned. We where meeting right as I was finishing college. I basically had to spend *all my money* to see him. He met me in Las Vegas, the trip was planned for a week. I payed for my airfare, hotel ect. He was only able to spend one day / night with me before he had to go back home, to California because of work. That made me upset! but never-the-less the time we had together was something *I do not regret at all*. Fast forward 5 months. He moved to Germany and then back to the states. I really want to see him, but he has no plans for us to "be together", at-least he won't say it to me. That really makes me confused because honestly I love him and I want to be with him. He wants me to fly out to see him again. I'm hesitant, I don't want my heart broken and I don't want to let him go. What do I do?

In the meantime I ended up casually meeting someone else (Garrett) in California and he is kind of like Drew except he actually "wants a relationship" and is more of what I'm looking for. The only downside to Garrett is that he has some anger issues when he gets into complicated situations/problems. This really has no relevance to the situation with Drew but I thought I would mention it for context sake.

I don't mean to seem high on myself or anything but I'm "above average looking" and I do get a lot of dating prospects but like I mentioned its rare for me to ever find anyone really "suitable". Drew or Garrett are probably the closest I'm going to get. Before you say "there's plenty of fish in the sea" let me say that I have dating profiles on all the major websites, get hundreds of messages weekly and do network with most of the gay people in my town. So I feel somewhat justified with that statement. I do want your thoughts though whatever they may me.

Ultimate goals;

For the next questions context - what I want in my life is: (1.) Financial stability. I don't want to worry if I can feed myself or my family and if I can/can't pay my bills. (2.) I want to get out of Canada and live somewhere with no winter. I hate cold and I hate snow. I love the beach, but since I've never really traveled extensively I don't know where this is. (3.) I want a boyfriend who I can trust, and won't leave me for someone more "pretty" when I start to age. I want a real relationship that is friendship first and sexual attraction later. (4.) I want to do good for others using my talents for complex thinking.

Money:

After I graduated college my mom gave me $5000. She is a single parent so that was considered a very generous gift on her behalf. Also, I managed to save $5000 of my own just by being extremely frivolous and not having much of a life. So my bank total is $10 000 at the moment. I want to be very careful with this money, because I feel like its all I have. At the moment, I have a decent car (totally paid off) and no debt. I want to set myself up for the future so I feel secure and can actually have a responsible, healthy life. Given the above information I've provided what should I do with these funds?

Sorry for the length of all this. Thank you for your thoughts! :)
robert shumake

A standard right wing talking point is that tax cuts for the rich and corporations create jobs.

This is, actually, true. They create jobs overseas.

The tax cuts’ two bills, in 2001 and 2003 – changed laws so that personal income tax rates were reduced, exemptions for the Alternative Minimum Tax increased, and dividend and capital gains taxes also cut.

Yet in the debate, it seems of no moment to either side whether the tax cuts were effective in achieving their goal of spurring business investment and making the US economy more competitive.

Our own examination of US non-residential investment indicates that the reduction in capital gains tax rates failed to spur US business investment and failed to improve US economic competitiveness.

The 2000s – that is, the period immediately following the Bush tax cuts – were the weakest decade in US postwar history for real non-residential capital investment.

Not only were the 2000s by far the weakest period, but the tax cuts did not even curtail the secular slowdown in the growth of business structures.

http://crooksandliars.com/ian-welsh/tax-cuts-rich-create-jobs-outside-us

If you can build a factory overseas which produces the same goods for less, meaning more profit for you, why would you build it in the US?

There are a number of ways this question can be answered.

You could slap taxes on foreign capital flows;

you could slap tariffs on foreign goods produced in low cost domiciles so that companies have to produce in the US to have access to the US market;

you could push industries which are hard to outsource but don't actually decrease American competitiveness. The housing bubble increased the cost of doing real business in the US by inflating real estate costs. A massive buildout making every building in the US energy neutral or an energy producer would increase US competitiveness.

you could try and do what America once did: have a tech boom. If the future is being produced in a country then everyone has to invest there and when things are changing fast you can't offshore production, because speed matters and offshoring is slow. This is why real wages increased during the tech boom of the 90s.

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Monday, September 20, 2010

Making Money Jobs

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