Could Lowering Taxes Help The Economy?
Quarter after quarter we see earnings reports, some make sense some do not. All in all they are in a language most people do not understand and they dismiss it as not relevant. That could not be further from the truth. All earnings tell a story about the company, but more importantly it tells a story about the economy and how well its doing. The lay person should not base their understanding of how the economy is doing solely on how their 401k is doing.
Why you ask are earnings so important? Corporate earnings help explain how the company is doing now but also 6-9 months from now. So its a very good indicator of how economies around the world may be doing as well.
As earnings are being reported this quarter we are starting to see the affects of the global economy and conditions take its toll on companies here in the US. Our government has tools to counter what the US economy has been going through. However, at this point in time they have used up all their tools to fix things except one possibly - lowering taxes. Its interesting why this administration lead by President Obama would not consider this tool and spare all others. Spare us from the inflation backlash that this country is going to experience when all the money being printed comes back to haunt this economy, spare us from the high unemployment we have been experiencing over the last 40+ months, and why not spare us from the low to no economic growth in this country.
It will be very interesting to see the outcome of the election and the actions after the elections. Take this brief poll..
Review the full write-up by Ed Butowsky, One Tool Left to Jumpstart Economic situation: Lower Taxes, at Fox