A Few Facts on the Deficit

[mawilson 2,133]

I just got a call:

"Your business has been preapproved for a capital improvement loan for up to $250,000. All you have to do is show that you make at least $2000 to $3000 in Mastercard/Visa transactions per month."

I hung up at that point.

Why? Sounds like a good deal.

[I AM NOT THAT GUY 5,715]

Why? Sounds like a good deal.

I get those calls two or three times a week. Besides, I don't take plastic.

[mawilson 2,133]

Besides, I don't take plastic.

That's silly.

[I AM NOT THAT GUY 5,715]

That's silly.

Why?

[mawilson 2,133]

Why?

Because you lose a lot of potential customers.

[I AM NOT THAT GUY 5,715]

Because you lose a lot of potential customers.

Hasn't happened yet. It costs 2.5% on the average to process those transactions. I would rather keep that in my pocket, then let the bank have it.

[mawilson 2,133]

Hasn't happened yet. It costs 2.5% on the average to process those transactions. I would rather keep that in my pocket, then let the bank have it.

Er... you'd rather lose 97.5% of potential profits from credit card transactions than let Visa have 2.5%?

[I AM NOT THAT GUY 5,715]

Er... you'd rather lose 97.5% of potential profits from credit card transactions than let Visa have 2.5%?

Where did you learn about profit margins?

Like I said, I have been in business 18 years, and I have never lost a sale because I didn't accept plastic.

[mawilson 2,133]

Like I said, I have been in business 18 years, and I have never lost a sale because I didn't accept plastic.

I seriously doubt that. I never pay cash - always plastic - so you'd lose me if I walked into your store (or whatever).

[Ban Hammer 13,427]

I seriously doubt that. I never pay cash - always plastic - so you'd lose me if I walked into your store (or whatever).

i prefer to pay cash locally. in fact, most businesses i frequent prefer cash so they don't have to pay the several percent fee to the card's bank. purchases online, of course, or really large purchases, i use the credit card for the added warranty bit.

[Kathryn41 3,205]

Post containing an inappropriate response violating TOS has been removed.

[I AM NOT THAT GUY 5,715]

Post containing an inappropriate response violating TOS has been removed.

Nope. It's still there.

[Texanadian 10]

I don't know what business you are in because you have stayed mum on it but most corporations use credit to conduct business or expand. Why is this any different for the government? The most efficient government would be one run like a corporation. One with a goal of minimizing costs while improving service, increasing revenue and re-investing it back into the business to grow. This is what conservatives have implemented in AUS and the result of it speaks for itself. Not to mention, we literally put the country first.

The majority of economists concur that investing in America during the depression help get it out of the depression. In fact, the double dip occured because investments were cut back, due to similar cries about the government. When did the economy bounce back again? When the government borrowed and spent at unprecedented levels to fight WWII. Further propelled by the GI bill following WWII.

The problem is not spending, rather, where and what the money is spent or invested. No one is saying just give people money but investing in things like infrastructure or fixing Americans disgraceful infrastructure improves efficiency, modernizes the country and ultimately creates jobs and growth.

I don't think anybody here will disagree that better roads and bigger better access to roads are all good ideas. Maybe it's different in Australia, but the ones who are against spending more on roads are the ones who think that riding the bus will magically make roads last forever and never need any new money injected. Or that a population increase of 10 million people over a decade won't cause any change in road quality.

Oddly enough, urban sprawl is reduced when better moving roads are maintained and built. It keeps businesses in the city. This keeps people living close by. Once you get a road system that is rush hour all the time, it encourages companies to move out of the city to the outer regions of the city where access isn't an issue. This makes people then move out of the city as they have no reason to stay inside.

As for government running like a business? When does this happen? Governments tend to run as non profits or losers. They have no reason to make money because they don't benefit from income like an individual or a company does.

As for businesses and credit? I agree that cash is the best way to grow. Sure it takes longer to grow this way. But it's a great safety cushion. Companies that have cash on hand always weather the storms better than the credit starved companies. I will admit that a great many businesses will expand and get better with the use of credit. I'm just saying it's not the best venue to partake in.

As for the Great Depression. Government was not the answer to that. In fact, I can't think of worse ways to improve the economy than the government did in the 1930's. The federal reserve tightened the money supply right through 1933 by over 30%! At a time when over 9,000 banks had failed. 1 in 3 banks. They put up import tariffs which destroyed any means of free trade. They raised income tax rates. They raised the discount rate by 2% in the span of 1 week. (Unheard of)

You're partly right about WWII eliminating the depression. But this was more because of the 12 million people who were taken out of the unemployed labor percentages and sent off to war.

Here is the reality. Road taxes and levies are significantly lower here. As a result, they are much more dangerous [represented by the high road-toll], cause more damage to your car and wear them out quicker. It's why I have had to replace four windshields versus none in AUS; in fact, I don't even know of anyone who has had to do so ever in AUS. Not only are the roads well maintained and safe but they are cleaned [swept] weekly. In the long run I save money by paying tax upfront to build and maintain roads, as they do in pretty much every other first world country outside the US. Google streetview covers South Africa, Now have a look at their roads and compare them to the US - it's bloody embarrassing actually.

Why are the roads being swept weekly? Sounds like too much littering. Too bad of roads (crumbling weekly?).

There are public goods and services that are provided by the government (federal / state and local) to and paid for by the public. Whether you actually use them or not is another issue. Schools are a good example - you pay for them whether you have kids in them or not. The fire department is another. It's there for you if you need it but you pay for it even if you don't require their services. Or how about the military? I mean really, to sit there and say I only want to pay for what I use is quite ridiculous. Move to a place that doesn't have any government and hence no taxation for public goods and services you don't fancy. May I suggest Somalia? It's some paradise for the self-sufficient I hear.

You're talking mostly about local city programs. Everybody including myself is fine with these. We pay property taxes after all. Military is one where you can't really have more or less military protection than somebody else. Schools are a different deal though. There are many different ways we could handle schools. But the government monopoly seems to be the only one that's (not) working.

I'll skip Somalia. I'd prefer Monaco or the British Virgin Islands. Neither of which has a federal income tax. Living in Texas, I at least don't have to pay state income tax.

[Kathryn41 3,205]

Nope. It's still there.

Actually, the reported post has been removed and I have just read this thread over from start to end and removed several other posts for baiting comments or posts quoting same. Having a difference of opinion with someone doesn't count as an insult in and of itself - it is how you express that difference of opinion that decides the matter.

[I AM NOT THAT GUY 5,715]

Actually, the reported post has been removed and I have just read this thread over from start to end and removed several other posts for baiting comments or posts quoting same. Having a difference of opinion with someone doesn't count as an insult in and of itself - it is how you express that difference of opinion that decides the matter.

No problem. Already forgotten.