Comments on: Feldstein: Weak & Wobbly Economy Ahead http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Mon, 15 Mar 2010 23:02:43 +0000 http://wordpress.org/?v=2.3.1 By: Kurt Brouwer http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3052 Kurt Brouwer Fri, 03 Jul 2009 01:20:12 +0000 http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3052 beachpaul--whoa. Pretty feisty for a guy with the word beach in his name. Martin Feldstein is hardly responsible for what Wall Street, big banks and government bureaucrats wrought. He has been warning about many of these issues for a long time. beachpaul–whoa. Pretty feisty for a guy with the word beach in his name.

Martin Feldstein is hardly responsible for what Wall Street, big banks and government bureaucrats wrought. He has been warning about many of these issues for a long time.

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3051 Kurt Brouwer Fri, 03 Jul 2009 01:17:38 +0000 http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3051 Thomas--good points. Even beyond immigration, we have actual trade restrictions and protectionism going on. The economic stimulus bill had Buy American provisions. And, the so-called cap and trade legislation has serious trade restrictions built in as well. Thomas–good points. Even beyond immigration, we have actual trade restrictions and protectionism going on. The economic stimulus bill had Buy American provisions. And, the so-called cap and trade legislation has serious trade restrictions built in as well.

]]> By: beachpaul http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3050 beachpaul Fri, 03 Jul 2009 00:23:45 +0000 http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3050 Let me guess..Mr. Feldstein made over $250 thousand last year? Good. Tax his ass. Also, tax the rest of the financial wizards that were responsible for this financial mess. Stop patronizing us. Everyone earning over that figure should also be required to invest in a mutual fund to be administered by Bernie Madoff from his prisons library computer. You best put your ear to the ground. There is a reason why it is so hard to find ammunition for nine millimeters now. Let me guess..Mr. Feldstein made over $250 thousand last year? Good. Tax his ass. Also, tax the rest of the financial wizards that were responsible for this financial mess. Stop patronizing us. Everyone earning over that figure should also be required to invest in a mutual fund to be administered by Bernie Madoff from his prisons library computer. You best put your ear to the ground. There is a reason why it is so hard to find ammunition for nine millimeters now.

]]> By: Thomas http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3048 Thomas Thu, 02 Jul 2009 18:52:13 +0000 http://www.fundmasteryblog.com/2009/07/01/feldstein-weak-recovery-ahead/#comment-3048 Many would accept that the Great Depression had three root causes: Tight money supply - we are avoiding that one owing to the Fed's rapid response (we have yet to see how they unwind the flood of cheap money they have created) Increased taxes - as you point out above The Smoot-Hawley Tariff Act of 1930 Today it seems we have a version of S-H through the increasingly anti-immigration stance of the administration. While S-H introduced disastrous tariffs on goods, the modern variant is imposing a tariff on labor, by targeting employers of illegals while making it impossible to hire legal immigrants owing to onerous visa limitations. As with every business downturn, businesses turn to technology which is cheaper than labor. This defers new hires and improves margins while simultaneously keeping unemployment high - margins that business will need to pay increased taxes. We are denying history and to quote WSC again "Those who deny history are doomed to repeat it". Many would accept that the Great Depression had three root causes:

Tight money supply - we are avoiding that one owing to the Fed’s rapid response (we have yet to see how they unwind the flood of cheap money they have created)
Increased taxes - as you point out above
The Smoot-Hawley Tariff Act of 1930

Today it seems we have a version of S-H through the increasingly anti-immigration stance of the administration. While S-H introduced disastrous tariffs on goods, the modern variant is imposing a tariff on labor, by targeting employers of illegals while making it impossible to hire legal immigrants owing to onerous visa limitations.

As with every business downturn, businesses turn to technology which is cheaper than labor. This defers new hires and improves margins while simultaneously keeping unemployment high - margins that business will need to pay increased taxes.

We are denying history and to quote WSC again “Those who deny history are doomed to repeat it”.

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