Would a Capital Gains Tax Cut Stimulate The Economy?

[dnalexander]

  I just hope that there is money there when we need it!!!!

Angtown, from the little I know about you and by how experts tell us to invest, you are on the right track and will have plenty to retire with. You own a business, you are a landlord, you invest monthly, you started early especially for your daughters.

The first book I ever read on investing was given to me by a wealthy family friend. The book was called "The Wealthy Barber" describing how a poor barber took small amounts of money and put it in the stockmarket each month. He died a multi-millionaire and worked every day of his life. The book is pretty old and may be out of print. I bet if you google "The Wealthy Barber" you will be able to find it. The single best and cheapest stock advice you will ever get.
David

[dnalexander]

Shoot Uncle Frank you can type faster than I can.

[frawin]

David, I know this family, the last Job, I had before I left Howard 43+ years ago was working for this young lady's Grandfather-in-Law running his combine doing some custom cutting. Her Grandmother-In-Law worked with your Mother as a Bell Telephone Operator at Howard. That was back in the days when you went throught the operator to make a call, I can remember many times picking up the phone and saying"Gracie please give me the store" and she would connect me with Uncle Neil's grocery store. This family came from 2 of the best big families in Elk County, the Wisemans and the Wunderlichs, all hard working good people. They will do well.

[Lookatmeknow!!]

Thanks Frank!  I do love my husbands family.  They are very hard workers!!  I love to make things for Gracie that she wants, such as Chocolate or coconut pies and things!!  She just doesn't get around as good as she used to.  And I love to make them happy!!  They do alot for us and when she had her hip surgury, we went to see her every weekend for the month and a half that she was in the hospital.  Of course you know that Jeff loves his family alot,too!!  Thanks again Frank!!  Do you know what:?  I feel like I know you even though I have never met you!!  Same with all of you on the forum!!  One giant happy family!!

[sixdogsmom]

Isn't it odd that when taxes are mentioned it always comes down to welfare? Welfare is in truth a very small portion of our budget. I too resent that some people collect welfare and early social security when in fact they are able bodied. But that has been a gripe from the beginning of time, and will continue no matter who is in office. Whenever there is a group of people some will always pull harder in the harness than others; works that way with animals too I am told. Is it fair? No. Has the republican administration cured that problem? No. Will the democrats solve that problem? No. It is just a griping point that comes up every election and will probably continue.

[dnalexander]

I It is just a griping point that comes up every election and will probably continue.

SDM I agree. the original point of this thread was to discuss how to go about solving these problems. So far no ones post has come close to providing information or educating others with strong detailed fact with footnotes we can veryify and use to assign weight to an argument. Maybe I need to place this on a board geared towards discussion of the economy to help me find the answer to my question that even economists don't agree. I know there will be posts here that lead me there. That being said I must say that the off topic parts of the thread that I have participated in are great. Keep posting this is turning into a great thread.

Thanks
David

[frawin]

Isn't it odd that when taxes are mentioned it always comes down to welfare? Welfare is in truth a very small portion of our budget. I too resent that some people collect welfare and early social security when in fact they are able bodied. But that has been a gripe from the beginning of time, and will continue no matter who is in office. Whenever there is a group of people some will always pull harder in the harness than others; works that way with animals too I am told. Is it fair? No. Has the republican administration cured that problem? No. Will the democrats solve that problem? No. It is just a griping point that comes up every election and will probably continue.

I am amazed that you would say that welfare is a small item.
Welfare Spending in the Nineties: From the Heritage Foundation Report on Welfare:

Welfare spending has continued its rapid growth during the last decade. In nominal dollars (unadjusted for inflation), combined federal and state welfare spending doubled over the last ten years. It rose from $215 billion in 1990 to $434 billion in 2000. The average rate of increase was 7.5% per year. Part of this spending increase was due to inflation. But, even after adjusting for inflation, total welfare spending grew by 61 percent over the decade.

Together, federal and state welfare spending would rise from around $434 billion in 2000 to $573 billion in 2005.

















     

[Catwoman]

Hmmm.  Interesting stats, Frank. 

[frawin]

Do you know Frank, you make a very good point.  When I was going to college, alot of my friends didn't have to work, there parents helped them.  I had to work, and I always told my friends that even if I had to work at McD's I would because I had to pay for my own rent and things.  I have worked since I was 13 years old or maybe even before that.  I am also with Dan on the part that there are jobs out there if people would just work.  I worked all types of jobs growing up, and to this day.  There is nothing that wrong with a little hard work.

I also don't mind paying my share of the taxes.  But when my share is given to people that don't work, won't work, have 10 kids that they don't take care of.  That is where I draw the line.

Also, do you know that you don't have to be rich to invest money.  Jeff and I have accounts for ourselves and the girls.  WE have lost money these past few months, but the girls have made a little.  Don't really know to much about it, just that we pay the money and it's taken care of.  We are supposed to be able to use this money when we retire.  I just hope that there is money there when we need it!!!!

Ang, I understand your concerns over losing some value in your investments, but I am assuming you are in good quality funds, in which case the greatest investment tool and benefit to young people is dollar averaging and compounding. Consider that the shares you are buying now are much cheaper but when this economy recovers those shares you are buying now will be worth alot more as will all of the shares you have been buying the past few years. Investing should be a long term plan and one that you need to use discipline, stay in through the good and the bad times. The key is to be sure you are using good quality funds. The dips in the market are really to your benefit. Keep on keeping on, you will be fine.

[frawin]

Hmmm.  Interesting stats, Frank. 

Cat, one of the fastest growing welfare problems in the US is the Illegal immigrants.