Joined: 28 Dec 2005
|Posted: Thu Oct 29, 2015 9:44 am Post subject: Uber - U.S. Economy
Uber may finally make the established taxi cab industry, with its monopolistic poor service and high prices, obsolete.
Welcome to the 21st century. Eventually, anyone driving a car can make some extra money driving a few blocks out of the way.
Iím sure, a firm like Uber will place better controls than anything government can implement.
U.S. real manufacturing output has increased even in this depression:
And, the U.S. has more shopping malls per capita than any other country.
You can thank globalization and firms like Walmart later.
Of course, we can go lower with more taxes, regulations, and lawsuits.
Walmart reduced prices substantially to raise real incomes and freed-up limited resources, including employment, through efficiencies and economies of scale, to expand the economy.
Taxes have become more progressive, particularly between low and middle income workers. Tax revenues are low, because the country is in a depression. Regulations, which tend to be regressive, are high. Lawyers are making a killing. No wonder more businesses are being destroyed than created.
Deflation in sectors of the economy where there isnít heavy government involvement raise real incomes.
A CBO study showed in 2010, the top 40% paid about 110% of income taxes, while the bottom 40% paid about negative 10% in income taxes or received an average of $19,000 in ďtransfers.Ē
Iím sure, itís worse now, and Obamacare doesnít help.
So, your solution to regulations causing destruction of smaller businesses, raising the cost of production, reducing national income, etc. is more regulation on larger businesses.
What makes people poorer is when workers are paid well to dig holes and fill them up again; excessive taxes, regulations, and lawsuits that create a disincentive for entrepreneurs and investors to work and take risks; government borrowing to pay people not to work, etc..
Itís not Uberís fault.
Of course, no business will invest and hire workers without customers.
When household debt is high, a big tax cut can bring customers back.
However, customers will pay one way or another when businesses are taxed, regulated, and sued too much.
[The only two times I had food poisoning was in and around San Francisco].
Making consumers pay too much, because of government policies and/or lawyers, doesnít improve consumption, but depletes saving.
Weíre still in a weak recovery after the severe recession. The anemic economic growth is driven by population growth, federal borrowing, and emergency monetary policy.
We need to unleash the entrepreneurs and eliminate crony-capitalism to expand the economy. The new millionaires and billionaires will create lots of good jobs and a great deal of value to consumers.
I was responding to Keynesís statement about increasing the marginal propensity to consume (MPC). You can increase the MPC and still consume the same, while reducing the marginal propensity to save.
Are you saying population growth, federal borrowing, and emergency monetary policy donít have positive effects on growth?
Not everyone can be a successful entrepreneur and Iíve stated before many people shouldnít be wasting their time in finance-related work.
We need to allow the entrepreneurs to do their work. When they become wealthy and have a successful firm creating tremendous value for consumers, then you can think about destroying their lives.