That's a sound idea, except that many people will not drop off the check and it will cost them a fortune to collect. Then what?
Problem solved
That's a sound idea, except that many people will not drop off the check and it will cost them a fortune to collect. Then what?
If they give a tax break for "Gay" I am going to have to seriously consider my options. I guess that would be considered sexual engineering?I wonder if the answers would be the same if there was a tax break for gay couples.
And as long as the government picks you as the winner, it's all good. If I'm the beneficiary, it's not social engineering.
Problem solved
Personally I would love to see this country stop rewarding debt. Why do I deserve a tax deduction for interest paid? It is past due time for a flat tax. no deductions at all...a flat rate that treats ALL Americans equally. No deduction for taxes paid, for interst paid, for anything.....just a flat rate.....and a rate that applies TO ALL!!
Yeah, let's have corporations not being able to deduct interest and see how that works for our economy.
Posts like this indicate why democracy just cannot work.
The Obama administration has ratched up spending exponentially. The Senate has refused to pass any budget in almost 4 years.
... and why Romney didn't finish every sentence in every debate with, "oh, and after four years we still don't have a budget" is beyond my comprehension.
Alright, here's a more clear example for those who don't understand the difference.
A manufacturer hires an IT consultant to keep the computers running smoothly. They transfer money to the consultant in exchange for his services. His services result in greater productivity for the manufacturer and therefore more of their product being produced. Net wealth is increased.
A manufacturer hires a tax accountant to handle their taxes. They transfer money to the accountant in exchange for his services. His services do not result in greater productivity and net wealth is not increased because nothing tangible is created as a result of the effort that he expends.
This is not an argument against accountants. They serve a purpose that is of value to the people who hire them. It's a very legitimate type of employment. This is an argument of economics. The fact that a person's services are valuable to someone does not mean that it creates wealth overall. It transfers wealth from one person to the next.
What if the accountant invests in an IT company startup with the money you pay?
I understand the create wealth portion but it seems the explanation is still incomplete. Is there such a thing as indirect wealth creation?
Don't confuse what Steve is saying.
Wealth does not have to be tangible, but it must be the creation of something useful.
I am an engineer. I create intellectual property. That IP can be sold, or used to create something tangible.
At any rate, if you are creating wealth, you should end up with more than you started.
Rocks - Steel - parts - car
Thinking - Design - product
Each step results in something more than when the process began.
Regulation - Accounting - Compliance
Some overhead is necessary to run a business, that does not mean that it creates wealth.
So if there is tangible wealth that would imply intangible wealth. Tangible wealth is a commodity where the price is set by a market? What are the distinguishing characteristics between the two?
I'm not sure what you're trying to say here.
Intangible wealth is something you can't touch with your hands, but can still be used to create or produce something.
In order for something to be wealth generating, it must be a net producer.
Some labor is not a net producer, but is a cost saver. For instance, machine repair.
For the sake of round numbers, let's say that you're making widgets for $10/part profit.
The machine that you're using breaks. You're now making $0 profit on your widgets, because no widgets = no money. So, you pay to have the machine fixed. After you write that check and the machine is up and running, you're only making $9/part profit.
Is $9/part more than $0/part? Yes. Is $9/part more than $10/part? No.
So, was the repair labor valuable? Yes. Did the repair labor add to your profit? No. No wealth was generated by repairing the machine. The only thing that happened was the mitigation of a LOSS of wealth.
At the end of the day, the business owner is making less money than he was yesterday, but it's better than no money.
Any type of overhead works this way. Accounting, management, administration, record keeping, etc. None of it makes you any more money, but it helps you to lose less money. Without those services, your business may only be 40% efficient. With those services, your business can be 90% efficient. So, instead of losing 60% of available profit, you only lose 10% of available profit. Therefore, the labor still has value, but it doesn't generate wealth.
Thanks for the detailed response. I am not sure what I am asking so I understand your confusion.
I am just trying to understand/define the terms in the thread.
1. Wealth--somewhat vague depending on personal point of view but then
2. Tangible Wealth--Well an adjective could imply a negation is also a proper term thus in trying to understand tangible wealth I asked about intangible wealth.
I have a feeling there is an underlying economic theory/concept that others know about and I don't. I never took economics so don't really know the different theories or philosophical schools except I have heard the term Keynesian.
Thanks for the detailed response. I am not sure what I am asking so I understand your confusion.
I am just trying to understand/define the terms in the thread.
1. Wealth--somewhat vague depending on personal point of view but then
2. Tangible Wealth--Well an adjective could imply a negation is also a proper term thus in trying to understand tangible wealth I asked about intangible wealth.
I have a feeling there is an underlying economic theory/concept that others know about and I don't. I never took economics so don't really know the different theories or philosophical schools except I have heard the term Keynesian.