Aces High Bulletin Board
General Forums => The O' Club => Topic started by: Ripsnort on October 12, 2004, 09:20:31 AM
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WASHINGTON (AFP) - Edward Prescott, who picked up the Nobel Prize for Economics, said President George W. Bush's tax rate cuts were "pretty small" and should have been bigger.
"What Bush has done has been not very big, it's pretty small," Prescott told CNBC financial news television.
"Tax rates were not cut enough," he said.
Lower tax rates provided an incentive to work, Prescott said.
Prescott and Norwegian Finn Kydland won the 2004 Nobel Economics Prize for research into the forces behind business cycles.
http://news.yahoo.com/news?tmpl=story&u=/afp/20041011/pl_afp/nobel_economics_us_taxes_041011212152
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Prescott speaks of Europes taxes:
Unfortunately, neither the OECD nor the IMF has any real explanation for why Europeans take so much leisure time. However, a new study by economist Edward Prescott of the Federal Reserve Bank of Minneapolis provides the answer. He says that Europe's higher taxes explain almost all the difference in labor force participation rates between Europe and here. He notes that when European tax levels were comparable to those here, work hours were similar. But as Europe's taxes have risen, workers responded by working less.
Consequently, tax cuts in Europe would raise labor supplies, increase output and raise the standard of living. For example, if France reduced its tax burden from 60 percent of GDP to 40 percent, the average Frenchman would be able to consume 19 percent more over his lifetime than he does now. This is a very large impact.
In short, Europeans don't work because it just doesn't pay to work after the government takes its cut. And because welfare benefits are so high, the cost of not working is low. Thus, when workers compare what they make after-tax with what they can make by doing nothing, the gap is very small.
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so if i dont work i shouldn't pay taxes there by i dont increase or decrease??? hell i will stay unemployed then,that way i can beat the system bahahaha yeh rite
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We need to get total taxes (including SSI) down to about 10%.
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That study is deeply flawed. First Prescott takes his data from the UN, which we all know is corrupt and secondly he makes the outrageous claim that the average French worker is 10% more productive than the average US worker. Thats just wrong on so many levels.
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I'd say it does make sense. If you know you will keep a decent wedge of your earnings, you'll put in the overtime.
Although, I'm not sure why people think spending large proportions of their time at work is something to strive to. Everything in moderation...
Incidentally, I thought Nobel Laureates were imbeciles according to the other thread.
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Accademics are typically out of touch. This one has never had a proper job in his life yet somehow feels qualified to analyse the average Euro's incentive for pissing off early down the pub every friday? Seems ambitious to me. Hmmm, paperwork or beer, paperwork or beer? suddenly becomes Hmmm, paperwork or let the state support me and my lazy brood? I'm off down the pub!
Plus Nobel didn't leave any mention of a prize for economics in his will, it was tacked on 70 years later by a bank. It's proper name is "Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel" The whole things a bit farcical.
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Hi Chortle. As surprising as it may seem, the average French worker does have higher productivity than the average U.S. worker. They produce about 10% more per hour than their American counterparts.
And I do agree about most economists. There are many who write nonsense just to be published and gain some name recognition. Fortunately, they are still disregarded by the remaining serious one involved in monetary policies and legitimate research.
And, once again, Ripsnort has misinterpreted something. It was a criticism of a tax reduction that should have given more relief to middle class and working poor to stimulate consumption. Even Greenspan did not endorse the tax cuts in the form they took. But hey, what would he know? He was either with the administration or against them.
Tax cuts for the high income people did not increase investment and did not increase employment as they were billed to do by the administration. The tax rates were not out of line to start with and high earners don't need to be stimulated to work...
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Are you just going to take that Ripsnort?!
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When a street person wearing a lepoard skin tu-tu and nothing else touches you and yells, "Tag, you are It", you are not obligated to chase them down the street, though that is always an option.
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from what I have noticed, every time taxes get cut significantly, the economy gets better
This leads me too believe that tax cuts are good
If you put more money in the pocket of the consumer, they will spend it.
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Yet another tree, yet another bear.
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Originally posted by Flit
from what I have noticed, every time taxes get cut significantly, the economy gets better
This leads me too believe that tax cuts are good
If you put more money in the pocket of the consumer, they will spend it.
Most economists will agree with you.
All the claims of "Tax cuts for the rich" as far as im concerend are a load of.... well you know.
Near as I can tell its just more Democrat rhetoric
Dunno bout you but I certainly got a tax cut and im nowhere even remotely close to rich.
maybe Im special
now I may not have gotten as much as someone who is rich. but then again. I didnt pay in as much either. So I shouldnt get as much.
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So much for Nobel...
http://www.hitechcreations.com/forums/showthread.php?s=&threadid=132319
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Originally posted by DREDIOCK
Most economists will agree with you.
All the claims of "Tax cuts for the rich" as far as im concerend are a load of.... well you know.
Near as I can tell its just more Democrat rhetoric
Its all about class envy
The Dems want you to be outraged that others make more money than you. Its simply unfair, so they should be taxed harder. :rolleyes:
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Yep those people only make more money than you because they are evil and are oppressing you. The only way to get justice is through the all-powerful nanny state which will right all injustices.
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Lowering tax of people having less concern about consumption as not a great impact on economy.
They won't all of a sudden buy 2 kg more food per day, instead they will start saving (not that I disagree with saving,it's just the impact is less positive than expenses)
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Yeah but I'll admit Bush aint all that bad.
;)
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Originally posted by Rolex
And, once again, Ripsnort has misinterpreted something.
He didn’t misinterpret it. He didn’t interpret it at all.
He just selectively pastes things here with little if any accompanying commentary or original thought. I'm not even convinced he reads them.
Then he watches the fun as the usual suspects regurgitate their party lines.
So far so good.
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Originally posted by myelo
He didn’t misinterpret it. He didn’t interpret it at all.
He just selectively pastes things here with little if any accompanying commentary or original thought. I'm not even convinced he reads them.
Then he watches the fun as the usual suspects regurgitate their party lines.
So far so good.
I report, you decide ;)
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As surprising as it may seem, the average French worker does have higher productivity than the average U.S. worker. They produce about 10% more per hour than their American counterparts.
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yeah its surprising. the guy sitting next to me spent 4 years in france as a customer rep for air france. he says the average work week in france is 35 hrs and the french in no way out produce americans in anything except the amount of vacation they take and the number of holidays they have. he does say the french are alot less stressed out than americans.....
show some data to support your claim as it is hard to believe.
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Yeager productivity is not fonction of the time you spend at work but more of the efficiency.
See it otherwise :
Will there be a difference between a worker producing 110% more working 90% less compared to a worker producing 90% and working 110% ?
Being less stressed at work can be positif ,as stress can be good or bad depending of the amount.
As my little experience of american enterprises in France it's just we have a different philosophy concerning work.
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Originally posted by Yeager
snipped
show some data to support your claim as it is hard to believe.
Another observation is that U.S. per capita output is about 40 percent
higher than in the European countries with most of the differences in output accounted for by
differences in hours worked per person and not by differences in productivity, that is, in output
per hour. Indeed, the OECD statistics indicate that French productivity is 10 percent
higher than it is in the United States.
Taken from here (http://minneapolisfed.org/research/sr/sr321.pdf). Its in pdf and by the same luminary and in the same paper thats quoted above regarding Euros not bothering to work due to comprehensive welfare.
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Originally posted by Ripsnort
I report, you decide ;)
I like it.:)
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Originally posted by Dowding
Incidentally, I thought Nobel Laureates were imbeciles according to the other thread.
Just the imbecylic ones Dowding, like ones who claim AIDS was created by the west to wipe out africans..
Are you equating people holding that claim to people who belive the economic theory that lower taxes encourage more workfdorce participation?