Perfect example why liberals shouldn't be allowed to vote.
Do you have a clue what happens when the very wealthy get scared financially? They start closing purse strings. That means lost jobs, lost health insurance benefits for those displaced workers, and lost tax revenue.
OH WAIT....my mistake. It's those hard working people who think that NObama is going to fill their tank and pay their mortgage that create jobs.
the bottom line is that the demand for the Rubik's Cube didn't come before the design and marketing of the Rubik's Cube. The people making them had nothing to do with that enormous demand. If those workers didn't show up to make them, someone else would have.
If you are looking for a "great example" try this one IE.Great example. Couple of nerds make a cube and show up at a toy convention. They get a few thousand orders and go back, hire some labor and start producing. As consumers grew, more jobs were created to build cubes. When the market was saturated and consumer demand dropped, the nerds laid off people. Jobs were created and destroyed based on consumer demand of the product.
Ranks right up there with "spreading the wealth", "bottom up economics", and "fairness doctrines", doesn't it?Ok, so only conservatives should be allowed to vote? I do not consider myself to be a "liberal", but to propose disenfranchising a significant base of the voting public, simply because you disagree with a number of thier views, is the most communist/totaltarian thing of all.
Great example. Couple of nerds make a cube and show up at a toy convention. They get a few thousand orders and go back, hire some labor and start producing. As consumers grew, more jobs were created to build cubes. When the market was saturated and consumer demand dropped, the nerds laid off people. Jobs were created and destroyed based on consumer demand of the product.
you act as if the employees in the middle didn't benefit while they were making the Rubik's cube or that it was some sin that the market didn't pay their salaries in perpetuity. That's silliness.Great example. Couple of nerds make a cube and show up at a toy convention. They get a few thousand orders and go back, hire some labor and start producing. As consumers grew, more jobs were created to build cubes. When the market was saturated and consumer demand dropped, the nerds laid off people. Jobs were created and destroyed based on consumer demand of the product.
you act as if the employees in the middle didn't benefit while they were making the Rubik's cube or that it was some sin that the market didn't pay their salaries in perpetuity. That's silliness.
The bottom line is that the product and marketing generated the demand, which, in turn generated the jobs and paid lots of people who would otherwise have been unemployed or forced someone else into unemployment.
Any way you slice it, the grand man was not the employee in the middle. The consumer is clearly a part of the equation. See, those consumers get their money when they have jobs from guys like Rubik, not when they get money from the gov't.
I don't know if you want to reason through this, but had the government been taking too large of a slice from Rubik, he doesn't find the capital available nor does the risk to initially develop and market the product justify the tax eaten returns. See risk vs. return of capital is what you miss in your entire little premise that the world is employees and consumers. It starts with investment capital and always has. It isn't a chicken vs. egg argument, ever. The returns on the capital have to warrant investment. When they don't the capital goes elsewhere and Mr. Rubik never makes his cube. Hence the jobs never exist and nobody ever has a national fastest contest.
if you're pretending that taxes aren't a massive impact to ROI, then you should stop the conversation here.Investment capital is a non-issue. If you have a solid roi in your business plan then there are endless sources of global venture, start-up, and investment capital.
To say that taxes will take a once viable start-up business model and render it infeasible is giving an Obama administration too much credit.
if you're pretending that taxes aren't a massive impact to ROI, then you should stop the conversation here.
Taxes will absolutely render many worthless and curtail investments. Taxes not only reduce the income of the startup, but also hit the investor after he makes his return. If startup capital costs roughly 30% today, what do you think it will cost 3 years from now and how many businesses can live up to it. How many investors will continue to take the same level of risk for reduced returns?
the business plan is immaterial when the investor has a certain risk / return threshold. Absolutely immaterial.We can stop here. Increased taxes that render a business model worthless was probably a worthless high-risk low profit business to begin with. Increasing taxes by percentages may impact profit but will not render the business worthless.
That takes financial capital until the company is viable enough to generate a revenue stream. Guess where that capital comes from?