patrick.net

Shaman says

They’re missing the entire point of a capitalist economy. You have to incentivize people to work or they won’t. That’s the entire point of money. It enables people to compel other people to provide them goods and services without having to enslave them first.

I assume you're against the Fed bailout of the "free market economy"? If not you're a little inconsistent. So it's capitalism all the way while the DOW is touching 30,000 but when a world event takes place, the Fed steps in, IN DAYS and tells the market "We will buy it all", "junk bonds, corporate debt", "the lot". That doesn't sound like any capitalist society I know of. Sounds a lot like socialism.

But wait there's more. What YOU want is socialism for big business and corporations and you offer capitalism (or the apparition thereof) to lower and middle class. How do I know this? Because I'm sure you've never complained on this forum that a US salary worker's average effective tax rate is 27%, yet the average corporation tax is just 12%? (If they pay any at all). Capitalism?

The reason this $2K is important is because it's the best chance to ACTUALLY get the money into the economy. If the average worker feels flush, he may buy a TV, air conditioner, cooler or even get the fridge serviced. Those who have the REAL money aren't shopping. What do you think Warren Buffet did with his earnings from the airline stock he just sold? Short-term Treasury Bills. His total now is $137.2 billion. That equates to him parking that money. He's not putting it back into the economy.

So far the Fed has spent 6.5T on the stimulus. Some good macro economists expect the total bill to got to a little over 13T. This currency magic trick is going to debase the U.S. dollar and reduce it’s purchasing power. Take a wild guess to what that will do to your dollar?

Here's something fun to do. Google the percentage of tax Carnival Cruise Line pays the US Treasury. Knowing that hedge funds will make the company good using Fed money. YOUR WEALTH.

I think you need to look at the big picture and see who is receiving the REAL money. The $2K per month is NOTHING compared to what the Fed is doing in the market RIGHT NOW. If anything that $2K represents the loss of wealth your $$ is experiencing per month.

Here comes that thing they were talking about few years ago, guaranteed minimum income.

junkmail says

Because I'm sure you've never complained on this forum that a US salary worker's average effective tax rate is 27%

Where did you come up with this number??? Are you talking state income, fed income, property, sales, etc. taxes combined? If you're talking Federal taxes alone, effective tax rate for the average salaried worker is substantially lower than 27%. Like way lower. An effective tax rate of 27% federally, probably puts you in the $400k plus range income wise. Probably much higher actually.

Even if talking marginal tax rates, not a lot of people get up to 27%, because that bracket doesn't exist. Correct me if you want, but I'm thoroughly confused with this quoted line.

OccasionalCortex says

KNOW everyone has $2k extra income per month and raise rents/prices accordingly.

I don’t think it’s that. Rents are under contract. Car dealers still have to compete with others.

I think it’s more like if joe blow and his wife can sit at home and make 48K a year, plus do a little side hustle to make a little cash under the table, then why would they work and pay taxes? If nobody works and nobody pays taxes, what happens to a fiat currency?

I seriously feel like a moron at this point. I make way too much money to qualify for any of this shit. Why am I working 80 hour weeks when I could work 40 hours managing a McDonald’s and pick up an easy 60k tax free benefit between the wife and kids? Seems like a way better lifestyle to me.

just_dregalicious says

There's always slab city. Go the fuck there: https://en.wikipedia.org/wiki/Slab_City,_California

I checked it out last yr, was pretty cool to see. I just drove through though, I didn't go into their library / bar / hostel etc...

Hircus says

just_dregalicious says

There's always slab city. Go the fuck there: https://en.wikipedia.org/wiki/Slab_City,_California

I checked it out last yr, was pretty cool to see. I just drove through though, I didn't go into their library / bar / hostel etc...

Slab City is CA future.

OccasionalCortex says

ignoreme says

I don’t think it’s that. Rents are under contract. Car dealers still have to compete with others.

REALLY? What happened to home prices & rent in Silicon Valley when all those good jobs came in?

Same thing will happen when ppl start getting $2k checks per month.

Another example is military bases near small localities. As soon as the military housing allowance is increased, rents and house prices follow suit. That hurts the locals who now have to compete for housing with the extra military money.

HeadSet says

Another example is military bases near small localities. As soon as the military housing allowance is increased, rents and house prices follow suit. That hurts the locals who now have to compete for housing with the extra military money.

Might turn into a good thing: since illegals won't be getting $2K, the instant rent increase across the board might persuade them to GTFO and go the fuck home.

junkmail says

I assume you're against the Fed bailout of the "free market economy"? If not you're a little inconsistent. So it's capitalism all the way while the DOW is touching 30,000 but when a world event takes place, the Fed steps in, IN DAYS and tells the market "We will buy it all", "junk bonds, corporate debt", "the lot". That doesn't sound like any capitalist society I know of. Sounds a lot like socialism.

You assume a lot.
1)The government demanded that businesses shut down and put people out of work. Now they have to be supported by the government or it’s an unworkable order. I think the government didn’t do enough to pay people and too much too pay corporations.
2)I’m not against the temporary stimulus. That is appropriate. What is not appropriate is making it long term. That incentivizes people to be non productive.
3)Shutting down was a mistake. We need to reopen immediately. Fuck the models! They are all bullshit.

WookieMan says

Where did you come up with this number???

Our average effective tax rate is 27.1% compared with 27.7% for the other 30 OECD countries, according to CRS.

https://americansfortaxfairness.org/tax-fairness-briefing-booklet/fact-sheet-corporate-tax-rates/

personal

junkmail says

I assumed you were smart. My biggest mistake.

I never assumed that about you. Flawless!

https://reason.com/video/were-the-covid-19-lockdowns-a-mistake/