GOP economics slam fails.


original article here.

This is what happens when liberals play with math.  They fit linear trendlines to non-linear data and look absolutely stupid while trying to assert their self-claimed intellectual superiority.  This data needs curve fitting to be extrapolated.  Take a math class.

A key tenet of the GOP is this: The economy is being held back because businesses are nervous about deficits and taxes, and that if we just removed that uncertainty, businesses would spend and we’d have more jobs.

The tragedy is that that’s a total canard.

One big problem? It’s just not true that businesses aren’t investing or spending.

All this graph shows is that there is a floor where capital investment / GDP levels out.  Why?  Because even during a recession businesses simply are not going to let their capital investments deteriorate and rot away.  At some point you reach a spending floor.  The problem is that this writing lets liberal emotions get in the way of the simple fact that “afraid to hire” does not equal “willing to let the whole business waste away.”

There is a bunch of typical liberal whining in the article (and especially the comments) but the simple fact is that businesses in the US do not want to invest in human capital because they view the future of tax laws regarding said human capital as being unstable.  Why would you hire someone when there is a very real risk that they could suddenly cost twice as much (with payroll tax increases, mandated benefits  increases, etc..).  In a business you make all choice based on available data and best-estimate projections.  When the future is very uncertain and the risk is both high in cost and probability you do not advance.  That is all.


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