Government Imposed Economic Fairness

[Packer16]

Has anyone else noticed the economic actions of the new administration is driven by the idea that the gov't is the agent for economic fairness versus the individual over the past 25 years?  Given this new paradigm for the US and given that many members of this board are in countries where there is more gov't imposed economic fairness than the US, what has been your observations on the effects of this policy on capital accumulation and investment management for those trying to accumulate capital like ourselves.  Other observations on how the movement away from gov't imposed fairness and investment opportunities created by such a policy would also be interesting to know.  Thx.

 

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[Guest ericopoly]

Just an observation...

 

Obama is talking about (in 2011) restoring the income tax rates to the Clinton years for people making over $250k.  The Clinton years generated the largest investment bubble in history, so I'm told.

 

I recognize this isn't addressing your question of what it has done in other countries, but we've been there before in this country.

 

Unless you are talking about other policies other than tax?  I didn't understand what scope you meant by "economic fairness", other than taxation.

[Packer16]

I was talking about other policies too.  I think three big differences are: 1) Clinton reduced taxes on capital (capital gains), 2) he did not seem to be so focused on fairness of economic outcomes but rather enhancing free-markets (NAFTA and welfare reform) and taxing the outcome and 3) he had a peace dividend (lower defense spending and talent whose minds could be put elsewhere).  I think the argument that we are going back to times of Clinton may be good rhetoric but I think the mindset is different.  Then the mindset was let free markets work and tax the outcome to finance the gov't.  The mindset today is the free market is broken and the gov't must impose fairness to fix the free market.  I think the difference is also illustrated in the markets reaction to each President's policies.  I know it is to soon to say that about the current admins policies, but the longer the market stays down or continues to go down the more the market in the aggregate is saying it is different this time.

 

 

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[Guest ericopoly]

I know it is to soon to say that about the current admins policies, but the longer the market stays down or continues to go down the more the market in the aggregate is saying it is different this time.

 

 

I can think of a lot of reasons why the market can be down other than what it thinks of Obama.

[bargainman]

Correct me if I'm wrong but it seems to me they are moving things even further than where they were in the Clinton years. The tax brackets are the same as Clinton, which is fine.  But...  they are reducing the deductions for mortgage interest, charities, and state taxes.  All of these moves are bad for high tax high cost states like California and New York.  (both voted for Obama).  I really wish they would start indexing these things to cost of living in different regions.  Even their recent mortgage package proportionately helps the states who need it less than the states that need it more.  They really don't seem to have a sense for regional economics out in DC.  Strange since Pelosi is from California, you'd think they'd know better... :-P