tag:blogger.com,1999:blog-5492310882851199969.post1063887031577153401..comments2024-01-09T15:03:54.986-05:00Comments on Wolf Howling: Obama Plans For New Manufacturing JobsGWhttp://www.blogger.com/profile/05814327154035433443noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5492310882851199969.post-54820664296734149192010-08-05T15:19:57.332-04:002010-08-05T15:19:57.332-04:00You cannot repeal the law of diminishing returns. ...You cannot repeal the law of diminishing returns. As the government raises the taxes on big employers they will take steps to mitigate those taxes. Some will move overseas, some will lay off workers, some will choose to go out of business but all of them will simply pass those higher taxes on to the consumer. Where is the winner? Certainly not the consumer with fewer choices and higher costs. Certainly not the stock holders and owners of companies who will be forced to make difficult choices. And not even the government who will discover that the law of diminishing returns means that you will get less tax revenue from higher taxes and not more as hoped for.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5492310882851199969.post-81191805874760503282010-08-05T04:47:24.621-04:002010-08-05T04:47:24.621-04:00How is Obama planning to tax these evil multinatio...How is Obama planning to tax these evil multinationals?<br /><br />I dunno, but I would guess he wants the same thing Kerry campaigned on in 2004: Taxing unrepatriated earnings.<br /><br />It’s a horrible, unworkable idea for many reasons, but just to give you a flavor:<br /><br />Suppose your corporation has a subsidiary in Lowtaxistan that makes a profit of 1 million schlubbucks. How much US tax do you owe on that? No, let’s start with an even easier question -- how much is 1 million schlubbucks in US dollars? What is the exchange rate? Do you use the rate at the end of the company’s fiscal year? The average (maybe weighted average) during the year? The rate on the date the tax return is filed? And where do these exchange rates come from? The Wall Street Journal? Your local bank? The government? (And believe me, these questions will get much harder on your next midterm exam.)<br /><br />I could give you many other objections -- some of them difficult to translate from my native accountingese -- but I hope cooler heads prevail and this unworkable, probably money-losing, idea again fades from memory.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5492310882851199969.post-84421115697116057192010-08-05T00:23:53.045-04:002010-08-05T00:23:53.045-04:00> A part of the reason for that is automation.
...> <i>A part of the reason for that is automation.</i><br /><br />No, the entire reason for it is automation. That some of it has gone overseas is a side factor.<br /><br />Automation/Robotics is to manufacturing what mechanization was to agriculture.<br /><br />It is destined to reduce the production element of manufacture to a labor usage of 3-5% just as mechanization did to agriculture.<br /><br />What about all those lost farm jobs?!?!? <br /><br /><b>Where's the program to switch us back to a good and proper 85% agricultural labor force?</b><br /><br />Ah. Right. It's <i>Marxism/Progressivism</i>.<br /><br />Never Mind....<br /><br />We have entered a new economy, based on IP and Services. We will NOT, without a massive economic setback, EVER see high manufacturing labor ratios.O Bloody Hellnoreply@blogger.com