Professor Caroline Heldman SCHOOLS Eric Bolling on the economy. LOL!

[Ruby the Liberal]

Bolling: We have the highest corporate taxes in the world and unemployment/food stamps are the WORST thing for the economy.

Prof Heldman: You are an unimaginable moron with a second grade understanding of the economy, capable of only repeating overheard bumper sticker soundbytes (paraphrased).

Fox Business Host Eric Bolling Can't Understand How The Financial Collapse Caused Drop In Aggregate Demand

http://mediamatters.org/mmtv/201108170041#.TkyDLoj56ws.twitter

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My additions:

US corporate tax rates as % of GDP

http://3.bp.blogspot.com/-HmFUU2DPu78/TjsRU6KmdVI/AAAAAAAAAH8/k81SFHEDJSU/s1600/Taxes+on+Corp+Income+as+Percent+of+GDP.jpg

Multiplier effect of unemployment, food stamps and tax cuts for the wealthy:

Every $1.00 in Unemployment returns $1.61

Every $1.00 in Food Stamps returns $1.74

Every $1.00 in tax cuts returns $0.32 (a loss of $0.78)

http://www.politifact.com/truth-o-meter/statements/2010/aug/12/rachel-maddow/maddow-claims-spending-more-stimulative-tax-cuts/


Seriously - How does this guy remember to breathe?

(Another video here on DU from a few weeks ago shows Alan Grayson patiently trying to explain to this empty talking head the difference between payroll taxes for SS/Medicare and Federal Income tax: http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=385&topic_id=598195 )


And why is he on the air showcasing his lack of comprehension for something we all learned in Econ 101 in Freshman year? Sarah Palin "hired for your looks syndrome" or something? (Noting that a photo friendly face when tempered with this level of arrogance and factual ignorance is beyond repugnant to look at, much less listen to).

[Ruby the Liberal]

1. Just relistened to the Grayson clip again.

This moron thinks 9% unemployment means (direct quote) "91% of the country is working".

I wish Grayson would have called his ass out about that, but I understand. With a ritalin-addled host, it was best for Grayson to remain uber calm.

[Make7]

2. She made an excellent point about the financial collapse not being preceded by a tax hike.

If the problem is that taxes are too high, why was the state of the economy so different pre and post collapse when the tax rates remained the same? And why hasn't the aggregate demand improved significantly since Obama has been in office? Tax rates are actually lower now than prior to the financial collapse.

It was rather amusing how Bolling just stuck to his talking points even after Professor Heldman clearly pointed out that what he was saying made no sense. Of course his paycheck probably has more to do with repeating the network's propaganda rather than discussing anything based in reality.
 

[Ruby the Liberal]

4. Exactly.

I would love to hear about how the (continuing) tax cuts are "creating" as opposed to hemmorhaging jobs.

[elleng]

3. Perry uses the same talking point, 'high' corporate tax rates.

I expect Dems will pounce on that one, sure should.

[Ruby the Liberal]

5. I don't think the lawyers and doctors we elected to Congress

know how to explain this to the bumper-sticker-mentality that is the 2011 United States of Idiocracy.

I weep every month when I pay my student loans for grad school knowing that what I learned back in the 1908s is limited to so few where it should be required education for anyone elected to a position of responsibility of determining our fiscal budget.

[elleng]

6. Sounds like the 'lawyers and doctors' don't understand it themselves.

so they feed on the idiocracy. Its difficult for me to believe they are so self-aggrandizing as to deliberately sell us all down the river, but kind of looks like that's the way they are.

[Ruby the Liberal]

7. Thats what gets them re-elected I suppose.

However a class in Econ 101 should be required for all legislators - especially those whose only real world experience has been as a corporate raider specializing in leveraged buyouts (layoffs/offshoring) and/or running a private practice (aforementioned professionals who we seem to like electing).

[bemildred]

8. Revenue - expenses == Profit.

Observe that only profit is taxed, hence with a high progressive tax rate, there are incentives to shift money from profit to expenses, so as to not give most of it to the government. Guess what? Jobs represent a big part of "expenses", so high progressive tax rates incentivize job creation and other internal investments; as opposed to high profits, which must be kept as "retained earnings", dispersed as dividends (taxable), used in buyouts, or taken out as high salaries(taxable) for the few at the top. Too much in the way of retained earnings will make one a takeover target, too.

Low and regressive taxation has the opposite effects. These effects are easily observable in our current economy, with low and regressive taxation, not enough jobs and investment, very high pay at the top, and lots of churning of companies and businesses.

[Ruby the Liberal]

9. I haven't studied it to any degree

but I believe that the tax structure was one of the reasons for the success of the 1950s. LOTS of other elements to that, but that extreme top tax rate no doubt played a factor as you have noted.

[bemildred]

10. Yes, I have no doubt. nt