Saturday, April 18, 2009

Comment on the Economy - "Teabaggers"

What "Teabaggers", those people who wanted to create a spectacle on Income Tax Day, April 15th, because they were outraged at taxpayer money going to the banking system and banks turning the money into profits, don't understand that with such profits, banks pay income taxes back to the American people by way of their elected government.

"Teabaggers" don't understand that with such profits, banks are able to create jobs for the American people, who in turn spend, invest, etc which result in even more jobs which result in more taxes back to the American people by way of their elected government.

Etc, etc...

Plus, such "Teabaggers" will never understand the importance of the concept of fractional reserve banking, in that it is the most effective way to stimulate an economy, because of the multiplier effect. That is, for every dollar which is inserted into the banking system, it results in about ten dollars or so inserted into the economy.

Plus, what such "Teabaggers" also don't understand is that any recent failings of such system can be addressed with improved regulation. Greed and panic are always at odds with capitalism, and regulation will always be in need of adjustment.

Plus, even with the recent failing, it still created the greatest economic boom in the history of the planet - record low unemployment and reduction of poverty from about 12% to 9% in the 90's in the US while also fostering a lifting of about 300,000,000 Chinese out of poverty, fostering a massive global boom even helped by the dot.com/communications bubble collapse which allowed India to buy up a communications/broadband infrastructure and make them a big player in the world economy - creating even more jobs, etc.

It's called investment!

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