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The fact that somehow just giving banks money at near-zero interest and letting them loan it at higher interest to speculators that drive up home and asset pric

• Fjolsvith 8y ago
  It occurs to me that the tight labor market is forcing wages higher naturally. Additionally, the recent tax cuts have helped inject cash into the economy.
  • kadendogthing 8y ago
    > Additionally, the recent tax cuts have helped inject cash into the economy. Source? Typically this doesn't actually happen. In fact there is very little evidence for tax cuts "injecting" (whatever this actually means) cash into the economy. >It occurs to me that the tight labor market is forcing wages higher naturally. It's a well understood fact that labor markets actually don't equalize in a supply/demand fashion. I want to know why you think this is the case?
    • Fjolsvith 8y ago
      Common sense. Lets say you previously was paying 30% taxes on your (e.g.) 10k annual income - $3000. Taxes get reduced to 25%. So, the next year you have an extra $500 in your pocket and not in the goverment treasury. Where does that $500 go? One or two places. You either 1) spend it on something or 2) invest it in something (which will result in that getting spent by the entity "borrowing" it). > I want to know why you think this is the case? I have had to raise the wages paid by my business to retain employees due to other businesses in my industry raising their wages. No research needed for these two thoughts. Direct observation and application of logic.
    • Fjolsvith 8y ago
      Additionally, I do not consider the federal treasury a part of the national economy.