Good News? September Jobs Report


#88

nearly 800 companies on this list that have publicly announced that they are doing something with their tax savings that will benefit workers. From increasing 401k contributions to bonuses to wage increases and more. Even utility companies doing immediate savings pass on to customers (One of the Utility companies here in Utah asked the public service commission to do a hearing to reduce rates, PSC said it didn’t meet the guidelines for a special meeting. Utility found a loophole and on the bills is a tax cut credit line on the bill. So when the annual hearing comes up, they can show what was given back and what they want for a rate reduction (if they didn’t do the special credit, at the hearing they could ask for what was over charged to be included in a larger rate cut.).

people ARE seeing results. Just a lot of people like pelosi calling it “scraps”.

Well guess what, there are a lot of people like me who don’t think it’s scraps . . . to me the extra nearly thousand dollars a year is going to be extremely helpful.

https://www.atr.org/list


#89

That’s a big part of the problem. Everyone pays and few benefit. It’s basically wealth redistribution.

In their book, Sports, Jobs, and Taxes , Roger Noll and Andrew Zimbalist present a comprehensive review of stadium investments. In all cases, they find a new sports facility to have extremely small (or negative) effects on overall economic activity and employment. Furthermore, they were unable to find any facilities that had a reasonable return on investment.

https://research.stlouisfed.org/publications/page1-econ/2017-05-01/the-economics-of-subsidizing-sports-stadiums/


#90

And that is why some companies are using the extra money to invest in new equipment or expansion as well. It’s not going directly to the workers, but many will benefit from the investment in the company. And yes many companies have said the investments in the company are a direct result of the tax cut.


#91

You didn’t comprehend my post, (Surprise? no.) A recap:

Using public debt (a bond) to for a specific civic purpose (e.g., a sports stadium) isn’t trickle-down economics in the way that cutting taxes is. It’s a specific plan to invest in a project that the plan says will pay dividends. Enough to finance the debt at least, and its hoped more.

Using public debt in the form of tax deficits is not a plan, it’s a prayer. It’s merely a hope, that the taxees will use the public debt that’s been transferred to their accounts to invest in projects, enough to pay back the public debt, and more. Fingers crossed. Historically it’s now been shown that this prayer isn’t answered.

That’s why in fact it’s a far better idea to incur public debt for a plan, such as to pay for infrastructure construction and renovation. That plan produces just the sort of “trickle down” benefits you’re talking about in your stadium-funding example.


#92

Well, wherever the money comes from (and for whatever the project is), money DOES “trickle” down. (I really hate that term though.) With many such initiatives, it doesn’t just trickle, but GUSHES. (At least for a while.) Laborers are hired – either locally, or shipped in if the local labor pool can’t fill the need. And every one of those laborers spend money. And if they have more to spend, they spend more. Restaurants and other food services benefit greatly. Ditto hotels and short-term rentals. Carpenter-Joe can buy his little girl that bike for Christmas now. (And 1000 other such decisions occur.) Local craftsman businesses get contracts for electrical work, plumbing, cement work, etc. Overtime hours abound. Landscapers, painters, wallboard work, welders, and all sorts of other skilled workers spring into action. Security outfits and equipment rentals, delivery services, and hundreds of other specialties most people don’t think of.

It doesn’t matter if it’s a stadium or an office building or a mall or whatever. Money pours in, and consumption of all sorts results. And the acceleration of money (how many times it passes hands from consumer to vendor) increases.

Maybe it even trickles to the burger flipper. The shop gets more business and therefore adds overtime hours to existing staff. Maybe the labor demand has sucked a quarter of the existing workers into the project, and the burger shop has to raise wages to attract (or retain) workers. that’s precisely what happened in areas where there was a fracking boom.


#93

Who exactly is going to benefit from all those purchases?


#94

And the fact that government steps in and funds it shows how wasteful government can be.


#95

Except wages aren’t keeping up with inflation/COL increases, etc. This is literally part of the OP. The rich are getting richer and richer, while the rest of us are getting scraps. Scraps is the right word.


#96

This was written by the evil Brookings Institution after they conducted a study 20 years ago. Things haven’t changed

A new sports facility has an extremely small (perhaps even negative) effect on overall economic activity and employment. No recent facility appears to have earned anything approaching a reasonable return on investment. No recent facility has been self-financing in terms of its impact on net tax revenues. Regardless of whether the unit of analysis is a local neighborhood, a city, or an entire metropolitan area, the economic benefits of sports facilities are de minimus.


#97

The companies that supply the equipment and manpower to install.

if it’s a new building the construction companies that build the buildings.

Oh that’s right it needs to go to existing workers at the company getting the savings don’t it? (yes I know grammer is bad, but I put it that way on purpose mmmkay)


#98

Really bad more to do with cronyism.

And pride.


#99

Close your wiki

I’m not sure is bonuses and increaese in 401k as included in wage averages.

But one of the big complaints is the companies keeping the tax savings and hording.

I’m showing through my link that’s not the case. Remember, those are only the companies that publicly announced their plans.


#100

Ah. So the benefits still go to the top.


#101

It’s only nonsense to you because you’re a lefty.

Every tax dollar is a dollar TAKEN from the taxpayer by the government. Often those dollars are necessary for the government to perform its function, but it’s money taken nonetheless. (The debate about what is necessary is a whole 'nother topic, and not what I’m looking to address here. And I’m also not saying that taxation is not the proper way for a government to fund itself.)

I’ll accept that.


#102

See the parenthetical part of my response to BigBear.


#103

:roll_eyes::roll_eyes::roll_eyes::roll_eyes:

That’s about the only thing I can do is roll my eye’s at that.


#104

that is precisely right.

And because of that, the arguments of “greed” and “how much more does the employer need”, etc., are spurious.


#105

Why do you think they’re doing bonuses and not wage increases?

Because wage increases are too expensive.


#106

You said yourself the extra money is going towards the construction companies. Not workers.

What do you think construction companies do with the money?


#107

I agree with you on the second one but it has everything to with greed.

Trickle down economics is a joke.