How does spending all of your Bush tax cut at Walmart help the US economy?

Question

Just wondering cons, cuz it seems to me nothing more than corporate welfare and kickbacks to his rich buddies that's all.

Answer 1

it's part of the repayment plan to pay back our debt to China.... :P

But seriously.. we need to stop selling our debt to China... and maybe try balancing the budget again.. like it was under Clinton.

Answer 2

*sigh* Basic economics and critical thinking are skills obviously lost on most liberals.

Here's the answer.

1) Wal-mart is a massive corperation which provides products Americans want.

2) Massive corperations require massive numbers of employees to keep them running.

3) That massive number of employees translates into a massive increase in the number of available jobs in this nation.

4) A massive number of available jobs translates into lower unemployment.

5) Lower unemployment means fewer people on the streets and on government welfare, decreasing the tax burden

6) Lower unemployment also means more taxpayers, which means that by lowering taxes, you're actually putting more money into the government than if you increase taxes.

7) Assuming corperations are the only ones taxed (just for the sake of argument), two things will happen-

A) The company increases its prices, therefore passing the cost onto consumers. Corperations don't pay taxes as a general rule. They will not take a profit loss.

B) Companies, unable to make a profit with the number of employees they currently have, must cut some jobs or benifits, which leads to an increased tax burden as more people depend on welfare and other government programs to meet their basic needs.

There... I told you it was simple.

Answer 3

You got a number of answers that really don't satisfy your question. Let me try.
Here is a fact of life. American labor simply cannot compete with international labor in the manufacture of cheap consumer goods anymore. Because of our standard of living, we cannot produce consumer items that sell in the $20 range or less.
A lot of people think this is a bad thing, but it really isn't. What we produce better, of higher quality, and at a price that cannot be beaten are large expensive pieces of equipment like the sort the Caterpillar produces, bulldosers, earth movers, etc.
In countries like China and India, it is still cheaper to hire 200 people with shovels than to buy a bulldoser or earth mover. But, this is quickly changing.
As more and more people in China and India start working in factories making cheap consumer good to ship over here, the standard of living start rising. The cost of labor is quickly rising in both of those countries. In China, it has already reached the point where hordes of people will no longer take jobs moving dirt.
More and more of our industrial equipment is being sold in those countries. It will be decades before either China and India have the skilled work force to produce quality industrial equipment that actually works.
So, the cheap goods you buy at WalMart indirectly supports high end manufacturing positions here in the USA. Bear in mind, selling one earth mover to China equals a hold boat load of cheap goods imported from China.
Right now companies like 3M and GE are making lots of money selling expensive equipment to China and its growing economy.

Answer 4

Partisan insults aside; spending the extra money you have on your paycheck from the tax cut puts more money into the economy. Sure, individually, the extra bit doesn't amount to much, but as a function of the total population, it represents quite a bit of money. The extra money goes into Wal-Mart's profits, which, in turn is used to purchase more merchandise and pay their employees. By purchasing more merchandise, Wal-Mart transfers capital into the accounts of their suppliers, who, just like Wal-Mart, spend the money to run their business and pay their employees. By increasing how much spending money the average Joe has, you increase how much merchandise they can afford to buy. This increase brings about a further increase in the amount of resources needed to produce the merchandise. To facilitate this, suppliers increase production to cover the increased demand. To increase production, they hire more employees. More employees translates to more tax revenue for the government in the form of income tax. So, contrary to common liberal dogma, cutting taxes actually helps the economy by stimulating business and investments.

Answer 5

It helps the US economy by keeping more money in the pockets of consumers. By allowing China to do what China does best- produce low cost goods, we save the balance for other purchases that improve the lifestyle of those in the US.

Don't believe leftist propaganda. Take an economics course.

Answer 6

I don't shop much at Wal-Mart, but the fact is that by shopping there, the average consumer saves more money on basic living necessities, and thus has more money for other things - like education, etc.

Why don't you want people to be able to have more purchasing power? Does it disturb you to think that working poor people might NOT have to rely on Marxist wealth distribution schemes to live?

Answer 7

The only thing I ever buy from Walmart is ammo. One of the few American made products found at Walmart...

I prefer spending my money at local enterprises, but...

You just can't beat Walmart's ammo prices and I shoot too much to not cut corners here and there.

Answer 8

Love when liberals speak out of both sides of their mouth!!!
I thought only poor people shopped at walmart?
I thought only rich people got the tax breaks.
Hypocratical liberals

Answer 9

I prefer to buy foreign made products. They're just as good or better than those made by High paid low worked American Union Workers. And they cost less too.

Answer 10

Lay off the welfare booze so early in the day Libby.

Answer 11

US ... as in Ultra Separatist The elite ruling class, members of the Billionaires Club.

Now the the Forbes list has no paltry millionaires. Society is starting to feel the separation.