Net beneficiaries of the US tax system

[BigBallinStalin]

Do you think that full employment could be achieved simply by removing policies? Or that it can be achieved at all?

Doesn't that depend on how one answers the first question?

[mrswdk]

My first question or yours?

[thegreekdog]

So how does the US government create jobs for the 7% of the population who cannot find work?

The only way a government can create jobs is to hire people. They can create an environment where job creation is more inviting.

[mrswdk]

How could they make job creation inviting enough that there becomes enough jobs for everyone?

[Lootifer]

I assume you are asking what government can do, rather than can you create 0% unemployment? Becuase 100% employment is not a useful target due to job mobility/transitions and natural differences in the candidate pool of unemployed vs the jobs available (CEOs arent likely to flip burgers).

As far as what the government can do I like the sound of negative income tax and earned credits and things like that. Also I am a fan of nationalist purchasing campaigns along the lines of "Buy US made" (must be generic and "un-sponsored" to avoid knowledge problem and cronyism respectively). I also like some training subsidies as long as they are targeted and actively reviewed for wastage (in other words set up such that it would not be politically undesirable to change and/or remove these schemes - people should know that if they can get an arts degree for free its a privlidge not a right).

I do NOT like subsidies for specific industries. I am yet to see a case where this hasnt lead to cronyism.

[BigBallinStalin]

My first question or yours?

What was the question again?

[thegreekdog]

How could they make job creation inviting enough that there becomes enough jobs for everyone?

Everyone? Don't know. Here are some ways to incentivize job creation:

(1) Tax credits based upon hiring.
(2) Cash incentives based upon hiring or capital investment (e.g. If you invest $100 million in our jurisdiction, we'll pay for $50 million if it).
(3) Reducing or eliminating taxes generally (whether sales taxes, income taxes, property taxes).
(4) Reducing regulations that may increase costs.

[mrswdk]

I am a fan of nationalist purchasing campaigns along the lines of "Buy US made"

Protectionist.

[mrswdk]

(2) Cash incentives based upon hiring or capital investment (e.g. If you invest $100 million in our jurisdiction, we'll pay for $50 million if it).
(3) Reducing or eliminating taxes generally (whether sales taxes, income taxes, property taxes).

I'm assuming this is an either/or suggestion, seeing as one involves massive government cash incentives and the other involves the decimation of government income.

[thegreekdog]

(2) Cash incentives based upon hiring or capital investment (e.g. If you invest $100 million in our jurisdiction, we'll pay for $50 million if it).
(3) Reducing or eliminating taxes generally (whether sales taxes, income taxes, property taxes).

I'm assuming this is an either/or suggestion, seeing as one involves massive government cash incentives and the other involves the decimation of government income.

It's not an either/or suggestion. For example, Texas does not have a personal income tax, but provides tax credits for research and development activities in the state. Obviously, as the government currently functions, it cannot eliminate all taxes and also provide cash incentives.

[Lootifer]

I am a fan of nationalist purchasing campaigns along the lines of "Buy US made"

Protectionist.

That implies US/UK/NZ/Aus/etc have something to protect.

You are right, our budding young manufacturing industries will soon upsurp Chinese/SE Asian producers...

The reason I am in favor of these kinds of campaigns is primarily due to the huge amount of wastage incurred in transport. Thats straight up losses for both the producer and the end user.

[BigBallinStalin]

I am a fan of nationalist purchasing campaigns along the lines of "Buy US made"

Protectionist.

That implies US/UK/NZ/Aus/etc have something to protect.

You are right, our budding young manufacturing industries will soon upsurp Chinese/SE Asian producers...

The reason I am in favor of these kinds of campaigns is primarily due to the huge amount of wastage incurred in transport. Thats straight up losses for both the producer and the end user.

Well, I don't mind too much government propaganda promotional campaigns in favor buying national, but there's a problem with your reasoning.

If importing/paying those transportion costs was so wasteful, then why wouldn't those businesses seek other means (e.g. trade and transport domestically)? Wouldn't it have been more profitable to do so--without government involvement?

And, if losses on final consumers is a concern, then how do those alleged losses compare to the losses incurred by government taxation to finance the protectionist policy?

And finally, depending on the various protectionist policies, a typical outcome is that prices domestically increase and quantity shrinks, which harms the consumer while benefiting the domestic producers. I would find this outcome difficult for the pro-protectionist to accept if they also are concerned about final consumers.