Real Estate: location, location, location - Economics: Demand, Demand, Demand!!!
WE MUST CREATE DEMAND FOR GOODS AND SERVICES:
Today, Thursday, September 29, 2011, Neil Cavuto interviewed Mr. Harvey Golub, former Chairman of the Board and CEO of American Express.
MAJOR ELEMENTS OF THE INTERVIEW:
1. Mr. Golub suggested that if corporate taxes were eliminated, a tremendous number of jobs would be created.
2. When Cavuto asked why corporations don’t use the $2 trillion of cash on their balance sheets for expansion and hiring, Mr. Golub responded that the ‘demand’ was not there to justify expansion and hiring.
DISCUSSION:
It appears that these elements of the interview have created an oxymoron.
If corporations paid no income taxes, they would add to their cash hoards, but that would not create expansion or additional jobs, since demand would not be affected.
It appears that the corporations’ shareholders would be the beneficiaries at the expense of all taxpayers.
That doesn’t appear to be a rational or valid investment of taxpayer’s funds.
CONCLUSION:
1. It appears that the ‘interview’ was a ‘dog and pony’ show, at best.
2. It appears that energies should be devoted to stimulating ‘demand’.
3. We, the People, will be subjected to this type of ‘show’, constantly, for the purposes of ‘tenderization’, i.e., to stimulate us into acceptance.
mz
