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Old 06-06-2005, 01:09 AM   #10 (permalink)
nailhead425
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Re: Can the Midwest ward off a Rust Belt slump?

Quote:
Originally Posted by Havasavana
Well, I grew up in Indiana; is that close enough?
Not really.

Quote:
Originally Posted by Havasavana
I've also paid attention to how the tax system works,...And what has happened is record deficits for all of us to the benefit of the most wealthy.
Cut taxes, cut wasteful spending. Clinton didn't balance the budget, he used projections based on the huge amounts of capital gains and other taxes as a result of the tech-stock driven market run up, which also fueled the Social Security surplus, to justify a deficit free budget. They didn't cut spending, they just took a windfall and spread it around. When the market tanked, so did all the capital gains. As a result, tax payments decrease. By cutting taxes more money is available on a daily basis for buying cars, homes, and helping to fuel the economy. We had one of the fastest turn-arounds in market history, as a result of a tax cut. Don't like it fine, but it is simply economics and it works every time.

Back on track though, right-to-work states in the Midwest have the potential to be the new South. The lure of low cost of living cities and tax incentives from states with few manufacturing jobs left, will bring in the dollars. The infrastructure is great, there is ample affordable land, the labor pool is good, and when pay and quality of life issues are better, people will migrate. As the price of property, homes, and business costs increase in the west, opportunities to cut overhead will be favorable, and they will once again be favorable in the Midwest.
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