Saturday, May 21, 2011

Politicians Who Increase Taxes Seem Ignorant of Basic Economics

May 21st, 2011

It would seem to me that any politician who supports increased taxes knows little – if anything – about the basic models of macroeconomics. As I recall, nearly the first week of any economics course teaches of what is called a “deadweight tax loss.” An increase in taxes creates what is called a “deadweight tax loss” to the overall economy – a loss which represents both a loss to suppliers/producers and a loss to consumers as well. Conversely, when taxes are decreased/lowered, whatever deadweight loss was associated with the difference in the lower tax is returned to the economy. As such, any politician who supports increased taxes then surely knows nothing of the basic models of macroeconomics, or the politicians simply don’t care about taking the consumers’ taxdollars to support the politicians’ political ‘rice bowls.’ The American politicians’ continued selling/prostitution of our American birthright to bankers and the politicians’ never-ending support for the off-shoring of our industries – which thereby also decreased tax revenues – does not justify any politicians’ continued devastation our economy by creating increased deadweight tax losses.

Adam Trotter, P.E. / AVT

PS. Additionally worth noting, the average/typical ‘corporate tax’ is just another way to tax the consumer, as any taxed corporation merely passes the tax on to its customers.

Tax and Deadweight Loss (note: Deadweight Loss and Tax Revenue at bottom)

Deadweight Loss

Deadweight Loss With A Tax for economics

Dead Weight Loss due to tax

Tax Avoidance and the Deadweight Loss of the Income Tax (Feldstein, 1995; interesting abstract – I didn’t read the paper)

Deadweight Loss (Remember, what I have said about avoiding any blind trust in Wikipedia)

Monday, May 9, 2011

Free Electricity for Everyone Everywhere! It Surrounds Us!

May 8th, 2011

As we all know, electricity is all around us in one form or another. Many may not be aware, however, that the electricity around us could likely be collected, harnessed, and utilized for our needs. While many sources may provide electrical energy to the human race, one naturally occurring source of free electricity, in particular, appears as feasibly promising for unfettered use. This preferred and naturally occurring source of electricity creates no pollution, appears as limitless [according to the laws of physics], and would likely require no significant capital investment to harness enough electricity to power a typical home. Currently, there is no way to assess the true quantitative or qualitative level of any volt-amp potential power that might be offered from this source of electricity. Consequently, it appears that no one really knows the amount of electricity that can be extracted from this source either. The irony with this matter is that this promising source for free electricity appears to be garnishing minimal attention from the scientific and commercial communities – if receiving any attention at all. But, nevertheless, this source of free electricity is available to all and it appears as though the generated electricity from this source could be easily gathered as well because this free electricity surrounds us everywhere in our daily lives.

Adam Trotter, P.E. / AVT