Thursday, July 9, 2015

Clean up of trickle-down policy

FIG. All sources are GDP]
http://members3.jcom.home.ne.jp/takaaki.mitsuhashi/data_34.html#GDP

That said, raising the tax rate under deflation, reduce the national disposable income, will reduce the GDP of the "next step" and (of course). Result, but is why would decrease also tax revenue of the government, it does not focus to "how increasing the GDP" in the deflationary environment, the Kaee be stupid politicians repeated and tax increases tax increase is attached to the seat of government, much Japan It is something. (PIGS countries because there is no means to the other, we have to abandon the GDP growth)

Basically, the policy of the government is of such should be focused on "how increasing the GDP". Trickle-down effect of the above, I mean that one method of "how increasing the GDP". In other words, by favoring the rich, asked to expand them to the "investment", it is a translation has on the idea that benefits are spread to the entire if GDP growth.

Of course, it is tax cuts to the rich, than disposable income has increased the results "savings" resulting in expansion does not make sense. And it I must get only increase investment (or consumption). Above Wikipedia, for trickle-down theory,
"Expansion of the pie at the macro level, not the powerful research exists to support that lead to improving the economic situation of the poor."
And it has been criticized, but Watakushi first place "at the macro level, the pie is really to expand (= GDP to grow) wonder," you have a question. Now that you have increased the politically rich of disposable income, it is simply not help but think as only to expand savings. In particular, as long as it is a country suffering from the current deflation as Japan, it is even more.

In addition, the trickle-down theory is also criticism that leads to the "widening gap". In fact, in the United States that trickle-down theory has been moved to the practice, disparities and I have expanded enough to chilling.

According to a survey by the American think tank EPI, through 1979-06, the ratio of the country's top 1% of income is the total national income, I was increased from 10% to 22.9%. income share of the top 1% of the people get is, versus I is not had expanded to more than double in the national income ratio. Moreover, growth of the top 0.1 percent of income even in tremendous condition, from versus national income ratio of 3.5% of the '97, in '06 it was increased to 11.6%.

Of particular it seems to issue, as a result of the policy of "wealthy preferential treatment" based on the trickle-down theory has been carried out, the majority of the increase in income, are also placed in the fact that wealthy had won. For example, in the period of 1989-06, out of the national income, which increased in the United States, it has gained 91 percent in just the wealthy of the top one percent. Also, if geared to the top 1%, and has won 59 percent of the national income, which increased in the same period.

The "fruit" generated by the trickle-down policy, after all is that wealthy had almost hog (?), There is the American reality.

All in all, the Obama administration has embarked on a negation of the trickle-down theory.

"US President" funny tax cuts to huge surplus company "to high-net-worth tax increase claiming fiscal reconstruction measures Republican Party, fiercely repelling
http://www.jcp.or.jp/akahata/aik11/2011-07-18/2011071807_01_1.html
US debt has reached the legal limit of 14 trillion 294 billion US dollars (about 1131 trillion yen), in which the Congress leadership of the Obama administration and the ruling and opposition parties continue to negotiate On fiscal consolidation measures, President Obama is the 16th, regular radio Internet I have reiterated the need for a wealthy tax increases in his speech.
If until August 2 is not performed legal limit raising of debt, has come out is a concern that the United States falls into the first debt default.
Opposition Republican Party, which holds the majority in the House of Representatives, as we need a clear fiscal consolidation measures to raise the upper limit, has requested the presentation of the spending cuts proposed, such as a significant reduction in the medical and social security system in the Obama administration.
While the administration has shown a certain social security cost-containment measures, as also we need reform in the revenue side to fiscal consolidation, the abolition of the wealthy tax cuts that were introduced before the regime bush, oil industry, which has made huge profit It was counter-proposal and the abolition of tax incentives to such.
By the abolition of the wealthy tax cuts, it is expected to tax revenues of 3 trillion $ 600 billion (284 trillion 800 billion yen) over the next 10 years. But Republicans are fiercely rebound, expected to negotiations settled does not have standing.
Obama in his speech of the 16th, for the fiscal consolidation measures "the most to wealthy Americans, it'll have to keep you the burden of equivalent, the problem can not be resolved" was again stressed.
"Oil company that has made tens of billions of dollars profit is I do not think I received a special tax deduction. Of hedge fund managers is, it is no excuse if there is a thing that needs the lower than his secretary tax rate" and and he said, "We no choice but to ask you to share the sacrifice to the wealthy" was said. "

Personally, legal upper limit problem of American government debt, it does not have to worry too much. Anyway, and then we have decided to compromise in the last minute of the stage is achieved, the first place where it has reached the debt ceiling, does not separate from the United States Treasury to default. If the FRB is buying US Treasury bonds, so will the wafer after being subjected to talk. (I do not know I might downgrade some)

Or also referred to as a problem than that, importantly, is the Obama administration,
"Abolition of wealthy tax cuts that have been introduced in the Bush regime, the abolition of tax incentives to the petroleum industry has made huge profits."
It is that it proposes. In other words, it is a clean-up of trickle-down policy.
As far as the current state of the American situation, the above suggestions of the Obama administration is the correct solution. Trickle-down theory is "not proceed to the theory as" thing, because I mean that out already result.
That said, in the current situation where the power of the Republican Party is growing, the Obama administration policy change of trickle-down policy would be difficult. On the contrary, Republicans because is why has come up with trickle-down policy of "significant reduction of the medical and social security system" even until now, the United States of the situation is serious.

Even so, the red flag of the investigation capacity is still amazing. Problem, but it's a point arises in that the "strange" policy is the Japanese Communist Party conceived from the correct current status recognition. Watakushi frequently,
"Without the correct problem recognition, it is not Umidase correct solution"
And, it is to write you,
"If the correct problem recognition, correct solutions Umidaseru"
There is no necessarily.

That said, although there is existence value than the Communist Party is the Democratic Party of Japan (Japanese) I think no doubt.

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