Johnny is calling the election

[Sydo]

How does giving people tax cuts affect the economy? If you tax people less, they can spend more, but if the cost of living is rising, the tax cuts are eaten up by inflation, aren't they?.

Tax cuts = increased consumer spending = pressure on inflation = pressure on interest rates = value of Aussie Dollar increases.

(basically)

 

[Goreripper]

OK, so as I expected. People buy more, prices rise, interest rates rise, the value of our exports increases and the cost of imports also increases. Lovely.

 

[Sydo]

Cost of imports decrease.

 

[Dän]

Wouldn't you also be paying more tax even if you got a pay rise to just under the tax bracket?

This is the thing about socialists, fucken dumb. If you earn more money, even $1 more, you will pay more tax. Can't you see that, Fuck's sake.

 

[Dän]

Sign me up in that register too! A carbon *tax*, now that I understand, as everyone would be effected. Carbon trading sounds to me like blame shuffling.

The opposite, it makes corporations responsible for their emmisions; dont ask socialists about how the economy works, they don't get it.

 

[Dän]

Tax cuts = increased consumer spending = pressure on inflation = pressure on interest rates = value of Aussie Dollar increases.

(basically)

Thats what I've been saying for the last 6 months.

 

[Dän]

Why not just change the Constitution and make the government a one-party dictatorship? Then we'd never have to worry about an inexperienced new Government.

All for it

 

[Dän]

Thanks for clearing that up. It still works out to me paying more tax. Now, can someone answer my question about tax cuts?

So earn less money and pay less tax dumbo

 

[Dän]

How does giving people tax cuts affect the economy? If you tax people less, they can spend more, but if the cost of living is rising, the tax cuts are eaten up by inflation, aren't they?

Shit, you're dumber than I thought, I can't believe someone of your age has the perception that what you just said might be correct, no wonder you vote Labor, it makes sense to me know, and fowards my argument of socialists knowing nothing about the economy.

1991, Soviet Union collapses, what a great socialist alternative. Way back in the 70's the other Communist powerhouse, china, embraced the free market, now its booming becuase of it. And yet you still argue against Capitalism and the Free market as the viable form of economy, wise up dummy's.

 

[Shannow]

So with a carbon tax, industry would be encouraged to produce less CO2...I don't see much difference between a tax and a trading system.

Both cost industry, and encourage reduction in CO2 generation.

 

[Shannow]

Thats what I've been saying for the last 6 months.

So you are saying that Howard is being irresponsible with $36B in tax cuts.

Not the greatest economic management, eh ?

 

[Dän]

OK, so as I expected. People buy more, prices rise, interest rates rise, the value of our exports increases and the cost of imports also increases. Lovely.

Exports decrease Imports incrase as Exchange rate has appreciated, but that is assuming the foreign markets are the same, which is unlikely. Specualtion also adds alot to it, both in regards to Interest rates and the exchange rate, as well as inflation and hence wages.

 

[phlogiston]

Dan, in all seriousness for a moment, could you explain to me how carbon trading works? Not the effects of it, the actual mechanics of it. How does one trade carbon? I said above that I don't understand it, so I must be missing something.

 

[Sydo]

Companies are assigned 'carbon credits' - which relate to a certain output of pollution. If they pollute more than the carbon credits allow, they need to purchase more credit from those 'greener' companies that pollute less.

ie- green companies can make money selling the carbon credits they don't use to heavier polluting companies.

In effect it is a tax on pollution - however one that can financially benefit greener industries; or Al Gore.

 

[phlogiston]

Thanks. Also found this http://en.wikipedia.org/wiki/Emissions_trading which seems to explain the pros and cons quite effectively.

In theory it sounds OK. Don't have a problem with it at all. I need to mull it over for a bit to let it sink home, but on the surface it sounds like a reasonable short term plan that might augment a longer term plan.

 

[phlogiston]

Seems to be a huge opportunity for corruption though (kinda like the stock market is now, anyway).

 

[Sydo]

Totally.

 

[phlogiston]

Next question. Except for the fact that I can't find mention of it in the Liberal Party website, and that Labor's will happen two years earlier, what the difference between the Liberal Party's carbon trading scheme and Labor's?

 

[Goreripper]

Cost of imports decrease.

Yes of course. Der.

 

[Goreripper]

Next question. Except for the fact that I can't find mention of it in the Liberal Party website, and that Labor's will happen two years earlier, what the difference between the Liberal Party's carbon trading scheme and Labor's?

Almost nothing. Both policies cannibalised each other. Both parties are completely lost at sea on this. The only way to reduce carbon output is to develop alternative energy.