China sees a lot of investment, true. China is also running a current account surplus. Why? Because its economy is still export-based and will be for a long time.

On the other hand, the 7-8% growth rate is not sustainable. Soon enough, the economy will experience a downturn (possibly sooner rather than later - there are other cheap labor sources after all). It will be interesting to see what the Chinese government does then. Hopefully it doesn't choose to nationalize the industry, but there's no guarantee against that. That's why the investors will be leary to invest there.

There is absolutely nothing wrong with the U.S. running a current account deficit; it only shows that the U.S. is still an attractive place to invest money into and that people still trust the U.S. dollar.

In EU, maybe, but not in the U.S. The government does not invest money into the economy here.

I was exaggerating when I said no politician. There are politicians that are willing to do it. Bush's tax cuts are going to force him into cutting spending in the second term if he is re-elected.

Sure thing

And for some reason, when I wrote that, I must have been drunk. Sheesh, I could barely spell anything. I couldnt even construct a proper sentence.

Sorry, arsi, I read your post wrong. I thought you said independent source of services, not income, hence all the confusion.

Like I pointed out before, there are other income sources that don't necessarily have to do with nationalization (the term that we use instead of "deprivatization"). They are import (or even export) tariffs an printing more money.

Thats kewl Krem.

I did'nt wanna mention tarriff cause after taking a couple of classes in poli sci, i just assumed it would make sense why not to increase tarriffs.

The printing money thing .. to me its always been about a short term solution to a problem ... sometimes you have to do it though ...

Oh yeah, I don't think either of those is advisable, but probably still better than nationalizing industry.

Meh. I've lived in a country with nationalized industry. Stuff isnt always top of the line but meh .. the cost is cheap ..

While your personal experience may be positive, overall nationalized companies tend to do much worse than their privately-held counterparts.

Do people believe that our wishes are being adequately represented by our senators, reps, etc.?

If so then we have taxation with representation and that my friends is different than the American colonies back in the early and mid 18th centuries.

Well we could get away with no taxation of our general populace if we do like the early European colonizers did and other conquerors did like raid other people's lands and steal their riches. Seems like just a shifting of the world ecomonic pie.

In that respect why not annex Canada and make it part of the US as we can help to exploit all the nautral resources that the Canadians hav enot tapped into yet? Lots of forest and oil there I am sure. j/k

Please do not take this post too seriously, it was meant in good jest.

Which is why I mentioned it was unacceptable in the first place : )

Freedom creates prosperity, not forcing Americas to fork over 40%-55% of their income.

Define Freedom BTC? I think that kind of cheerleader line gets society nowhere.

-Dolce

Ok BJ did some research and here is what he found.

The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.

this was only for income tax can they justify all other taxes layed down over the years?

Ah, yes, Amendment #16. (I just had an amendment test)

My view is that the government shouldn't take more than God does. (10%)

The freedom I was referring to was the liberty to keep what your earn.

Running the current account deficit is only possible because of the size of the U.S. economy, strength of the U.S. dollar (also, its acceptance as "world currency") and inflow of foreign investment... It has worked pretty well in the past, there are no guarantees that it'll will continue in the long-term...

yes if any at all

what do you think of all the other taxes put upon the americans? the consitution only says than americans are taxed by the income tax what about all the others that have come over the years?

Neither is the deficit guaranteed. Market forces will adapt once the int'l trade conditions change. Unless, of course, the government intervenes.

It's so overwhelming with all the little bills here and there and how much the government takes. I think they need to find another way to make money. They should look into box office. They can make movies. "Go to the movies and skip taxes!" Most people would see the gov't's movies if they were good just to support the gov't and not to pay taxes.

Knowing how the government works, it would film bombs that'd make "Gigli" look like "My Big Fat Greek Wedding"

1. The Chinese government will build an idiotically huge water dam.

Or, it could have interceded to keep growth rate at 2-3%, so that the country could continue to build at a steady rate with out an Appalacian Range-esque type economy of +7-8% followed by -7-8%. It has been perfectly engaged in the economy, and don;t think that high growth doesn't include just as much government prodding as long-term growth.

2. Enron, Tyco...ALL corporate welfare.

3. Sure, with Iran, North Korea, and who knows how what country after that...I see LOTS of ways to cut government spending.

Like considering ketchup a vegetable for school lunch assistance in Detriot.

-Dolce

1. A government can never guarantee a 2-3% growth rate for the economy. Especially the backwards government in China. Growth begins and ends with the private interests, not the government.

2. What exactly about them? Are those the boogeyman they use to scare the little kids now?

3. I know your heart's in the right place. But you have to realize that schools have to be accountable for the money they spend. You can't just pour money there without making them show something for it. And don't get me started on the "school lunch assistance" programs. How much does it cost to give a child his/her lunch? $2 per day maybe? Why is it that people expect the government (read other people) to pick up the tab for them?

Krem: Reaaaaalllll Nice. Sad, but very true. lol.

BJ: "Income" is debateable when dealing with busineses. What is their income? Inorporated units legally have the status of an individual. Are their not individuals that make their income on property ownership and/or management of land?

-Dolce

Yes there are, my dad is a property owner and he pays no income taxes and he is able to get property tax cuts on most of his properties. Also rental realestate never has to realy make a profit. this year my dad not only paid no income tax he also got 30 dollars back 8)

A 7-8% growth is, indeed, not sustainable. But even at 3% it will still fare better than most countries in the world. Other cheap labor sources? Sure! But not over 1 BILLION of people ready to work for peanuts. The growth of the GDP won't stop for many years to come and I see no reason for the government to nationalize the industry.

The good thing about China is that although its economy is export-based, more and more people invest there, so it'll cash in from the export and the investors whereas the USA has to rely on just investors at the moment and some of those will eventually switch to China.




Not necessarily. He can just make the tax cuts and NOT sut the spending. Instead of that he might just hope that the tax cuts will lead to people investing more money and consuming more. He also can take the tax cuts back (unlikely). We all know that it is very unlikely that a politician will make unpopular decisions and even if Bush decides to go this way and cut the spending, this cut will be minimal.