The fundamental purpose of capitalism is to ensure the efficient use of capital. The more you take out of a system, the less there is to grow and the more efficient each system needs to be to remain competitive.I enjoyed what you wrote, but didn't fully understand what you meant here. Can you explain this for me. Thanks.
Every system has its pros and cons.Speaking of communism...
I'm making a guess that you're talking mostly about income tax.And I think that re low tax and more revenue has been disproved by the experience of the US over the 40 years since Ronald Reagan took office - the so-called Laffer curve. Here's The Economist on that subject: The Economist on Laffer curve
Tax rates get cut. Revenue declines. Social spending gets cut as a direct result. Tax rates get cut again - supposedly in an attempt to stimulate the economy but really with the goal of making the rich richer and corporations more profitable. Then the decline in revenue is used as an excuse to further cut social spending.
Lather, rinse, and repeat. And that's why the US has a badly frayed security net compared with the rest of the developed world.
You're wrong on several pints. The fundamental purpose of capitalism is the private ownership of capital. Whether or not that is an "efficient use of capital" is neither here nor there with regards to the concept of capitalism. And is up for debate. The purpose of capitalism isn't.The fundamental purpose of capitalism is to ensure the efficient use of capital. The more you take out of a system, the less there is to grow and the more efficient each system needs to be to remain competitive.
The more you want to spend, the more you have to tax. If you tax more to redistribute to social programs, that's less that's remaining to grow but it also reduces opportunities. Part of the issue you need to take into consideration, tax isn't only paid on profits. There are goods and services taxes, tariffs, sales taxes, licences, permits, medicare, pension contributions and the list goes on (I'm trying to list what you have there, so forgive me if I got some of the terms incorrect for your area). The more of these taxes exist, the the more efficient businesses need to be to remain an efficient use of capital. Variable and fixed cost of goods also needs to be taken into consideration. A balancing act needs to occur. If the cost of doing business is too high, opportunities tend to move to places where capital would gain more returns.
It's why you can tax at a lower rate, attract more investment, and over time, earn more to spend on social programs.
All this is an oversimplication but I hope it makes some sense.
Every system has its pros and cons.
Then... (and this should come as no surprise to anyone) he was seen at a fundraising event at his Trump International Hotel in Washington, D.C., not wearing a mask and not social distancing.this is all i wanted to happen when the crisis struck... FINALLY
trump went on tv yesterday and said everyone should wear a mask
You're right on the first point. Private ownership of capital is one of the fundamental elements concepts too. I also should have said, efficient use of resources. Remember, this was all an oversimplication. You're going to be able to find holes left, right and center. If you didn't notice, competition, a fundamental concept in capitalism wasn't included in the discussion either.You're wrong on several pints. The fundamental purpose of capitalism is the private ownership of capital. Whether or not that is an "efficient use of capital" is neither here nor there with regards to the concept of capitalism. And is up for debate. The purpose of capitalism isn't.
Secondly, as had been mentioned recently, your lower tax rate point has been disproved countless times. I could send links to show this if needed.
As an additional criticism of a capitalist, profit driven world, and probably the greatest criticism there is, we only have to look at climate change, and our impending extinction. But sadly most people have their heads in the sand regarding that.
I will say a little prayer for you, your family, and your daughter.
hopefully your daughter doesn’t have to go through it
Thank you all! My wife and I are not overly worried. My daughter feels just fine so far, as do my wife and myself. If any of us gets it we have an excellent hospital nearby if anything occurs, I'm not worried there.Fingers and toes crossed for your daughter!