Lucky... 0 #26 July 27, 2010 QuoteQuoteYep, low taxes are the cause of them. GWB lowered taxes, the economy stagnated, the fed lowered int rates to spur the economy and house prices, being the inverse of prinicpal value, soared creating false appreciation of home values. Prove it. The economy stagnated on 2001, I attribute that partially to the light recession, but it was exacerbated by the lowering of income tax. Lowering taxes allows and encourages profit-taking and saving rather than reinvesting. This stagnated the economy. The fed then lowered the int rate to try to encourage spending. They repeated this until the rate was at record lows, then home sellers adjusted their demand price to counter the low int rates and the mess started. Quote Share this post Link to post Share on other sites
mnealtx 0 #27 July 27, 2010 QuoteQuoteQuoteYep, low taxes are the cause of them. GWB lowered taxes, the economy stagnated, the fed lowered int rates to spur the economy and house prices, being the inverse of prinicpal value, soared creating false appreciation of home values. Prove it. The economy stagnated on 2001, I attribute that partially to the light recession, but it was exacerbated by the lowering of income tax. Myself, I would have thought it was the (roughly) 1.7 million jobs lost in 2001 than any decrease in income tax. I'd also say that people tend to spend more when they have more in their pocket rather than the reverse that you seem to be claiming. QuoteLowering taxes allows and encourages profit-taking and saving rather than reinvesting. This stagnated the economy. Proof, please.Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
kelpdiver 2 #28 July 27, 2010 QuoteQuoteBut it's not the primary cause of our current situation,... "it" here was talking about the wars. I know your mind is one track right now, but try to read. Not understanding the effect of the end of the dot com bubble is a whole different problem. Maybe someone else can help you there. The clearest illustration of it was how the supply of waiters in the Bay Area changed (down, then up) from the later 90s to the early 00's. Quote Share this post Link to post Share on other sites
