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by Hatchback7599 503 days ago
You know what else injects money back into the economy? Letting tax payers keep more of their tax dollars.
4 comments

For low-wage employees who spend almost all of their income on goods and services, yes.

For highly compensated employees who save the majority of their money, no.

The solution is simple, crash the economy so there are more people spending their whole paycheck every month
Looks to be the plan.
Saved money are also injected back into the economy. They aren’t stored under the mattress. They are in banks, where they are lent out, spent and invested, creating jobs, buying goods and services.
You're only 1/3 right. Saved money isn't lent, nor spent (lending is just creating money). It's invested, 95% in the secondary market (probably more in the US). If the secondary market isn't correlated to actual production (and nowadays, it actually isn't, even in mining, prospecting and future are the main beneficiaries, which to me is crazy. One of the only exceptions is the energy sector), that money won't create real jobs.
What do you think those sellers on the secondary markets do with the money they get?

At the end of the investing chain it’s always jobs, products and services - or bank deposits.

Any money not physically hidden in a cash vault or under a mattress takes part in the economy.

Re-invest in crypto or other, already-existing stocks. The secondary market is so huge nowadays, and uncorrelated from dividends, mainly because growth (followed by regular buybacks), not dividends, is now the main way to pay investors, but not only. In fact, what Jacques Richard call "futuristic accounting" (his research is available in english [0]) is basically helping big companies to decorrelate real profits from dividends.

[0] https://www.researchgate.net/publication/265171038_The_dange...

> Re-invest in crypto or other, already-existing stocks.

Again, for a stock to be on the market, somebody has to do the economic activity to create & bring it there. Buying from that "someone" pumps the money back in the economy. Buying from another, previous, stocks owner just moves the situation to him.

Kind of like when you pay your retailer for the product on the shelf: there are certain delays but eventually the money has to reach the product builder, with each participant in the production & logistics chain keeping his share on the way.

This is simple, trivial logic and no amount of biased, ideological "research" can change it.

But still less than if the federal employee was providing any ROI whatsoever on their salary. Why not instead talk about which federal departments (or agencies) provide an ROI, and how that can be measured in a nonpartisan way.

(In any case, US federal debt interest payments will be ~$952b in 2025, out of $7.5 trillion budget. That's >> more than the $271b on total salaries for all civilian employees (or the $4.7 trillion tax cuts which expire end 2025). So, intentionally crippling the federal govt still wouldn't touch either the debt or interest payments; except as a blunt instrument to kill govt programs and bypass Congress.)

Lowering government expenses will not reduce the tax burden of the majority of Americans.

Trumps original tax plan benefits the higher income earners at the expense of lower and middle income earners.

Source: https://taxfoundation.org/research/all/federal/donald-trump-...

My retirement account already has a big hole in it from Trump’s first round of tax hikes and tariffs.

I seriously doubt it’ll be any different this time around.