Comments on: Payroll tax holiday under discussion http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/ St Croix, United States Virgin Islands Thu, 09 Feb 2012 07:42:52 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: warren mosler http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3441 warren mosler Wed, 21 Jan 2009 01:43:20 +0000 http://www.moslereconomics.com/?p=6092#comment-3441 'employer of last resort' ‘employer of last resort’

]]> By: RichW http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3440 RichW Wed, 21 Jan 2009 01:38:42 +0000 http://www.moslereconomics.com/?p=6092#comment-3440 I'm sorry... ELR is??? I’m sorry… ELR is???

]]> By: warren mosler http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3414 warren mosler Tue, 20 Jan 2009 02:03:28 +0000 http://www.moslereconomics.com/?p=6092#comment-3414 yes, as well as introducing benefits from the bottom up. for example, add child care to the elr as a benefit and market forces will drive most other businesses to do same. yes, as well as introducing benefits from the bottom up. for example, add child care to the elr as a benefit and market forces will drive most other businesses to do same.

]]> By: GeorgeR http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3407 GeorgeR Sun, 18 Jan 2009 17:11:24 +0000 http://www.moslereconomics.com/?p=6092#comment-3407 Thanks guys...got it...makes sense.....The ELR is Fundamental to process....rather than guessing what that deficit should be, the ELR establishes that for you....and the changing price paid to the unskilled makes that deficit dynamic and stabilizes the price level in the economy. However, there is still a role for fiscal adjustments based on "top-down" desirability.... Thanks guys…got it…makes sense…..The ELR is Fundamental to process….rather than guessing what that deficit should be, the ELR establishes that for you….and the changing price paid to the unskilled makes that deficit dynamic and stabilizes the price level in the economy. However, there is still a role for fiscal adjustments based on “top-down” desirability….

]]> By: warren mosler http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3405 warren mosler Sun, 18 Jan 2009 02:51:50 +0000 http://www.moslereconomics.com/?p=6092#comment-3405 Good discussion- both correct! ELR funding uses and employed buffer stock rather than an unemployed buffer stock for price stability in a 'market' economy. And even with ELR if the ELR pool is deemed too large or too small a fiscal adjustment is in order. Or if it is deemed the balance between public and private goods be changed that too is done via fiscal adjustments Good discussion- both correct!

ELR funding uses and employed buffer stock rather than an unemployed buffer stock for price stability in a ‘market’ economy.

And even with ELR if the ELR pool is deemed too large or too small a fiscal adjustment is in order.

Or if it is deemed the balance between public and private goods be changed that too is done via fiscal adjustments

]]> By: Jim Baird http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3401 Jim Baird Sat, 17 Jan 2009 20:11:06 +0000 http://www.moslereconomics.com/?p=6092#comment-3401 George - Warrne can answer for himself, of course, but I think you missed the most crucial part: the ELR. Instead of trying to "fine tune" fiscal policy, which will always operate with a lag and inevitably be politicized, you want to et up automatica stabilizers that will set the deficit to the correct level more or less on their own. Setting the price for unskilled labor allows the deficit to "float" and tends to stabilize prices. George -

Warrne can answer for himself, of course, but I think you missed the most crucial part: the ELR. Instead of trying to “fine tune” fiscal policy, which will always operate with a lag and inevitably be politicized, you want to et up automatica stabilizers that will set the deficit to the correct level more or less on their own. Setting the price for unskilled labor allows the deficit to “float” and tends to stabilize prices.

]]> By: GeorgeR http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3399 GeorgeR Sat, 17 Jan 2009 16:29:11 +0000 http://www.moslereconomics.com/?p=6092#comment-3399 Hi Warren….my understanding of your “process” is as follows: Fiscal policy: main driver for economic growth. Private Surplus = Gov’t Defecit. Monetary policy/interest rate policy: ineffective for promoting economic growth; serves technical needs Tax Policy: taxes-justification for currency; to be used in conjunction with fiscal policy to manage growth/deflation/inflation Issuance of Treasury Debt: Eliminate; serves “no” purpose; Investors wishing to defease liabilities against riskless asset can engage in, say, “swaps” with FED to highlight investor choice rather than Government need. How to determine interest rates for swap [or anything else] if no government debt trades? [would Gov’t just “set” a rate ?] Situation: Set fed funds rates to “Zero”…..In times requiring increased demand, increase fiscal stimulus in conjunction with lowering taxes/rates. In times requiring moderation of demand, reduce fiscal stimulus, increase taxes/rates. Inflation is barometer [as defined by?]. Hi Warren….my understanding of your “process” is as follows:
Fiscal policy: main driver for economic growth. Private Surplus = Gov’t Defecit.
Monetary policy/interest rate policy: ineffective for promoting economic growth; serves technical needs
Tax Policy: taxes-justification for currency; to be used in conjunction with fiscal policy to manage growth/deflation/inflation
Issuance of Treasury Debt: Eliminate; serves “no” purpose; Investors wishing to defease liabilities against riskless asset can engage in, say, “swaps” with FED to highlight investor choice rather than Government need. How to determine interest rates for swap [or anything else] if no government debt trades? [would Gov’t just “set” a rate ?]
Situation: Set fed funds rates to “Zero”…..In times requiring increased demand, increase fiscal stimulus in conjunction with lowering taxes/rates. In times requiring moderation of demand, reduce fiscal stimulus, increase taxes/rates. Inflation is barometer [as defined by?].

]]> By: Dave Begotka http://moslereconomics.com/2009/01/14/payroll-tax-holiday-under-discussion/comment-page-1/#comment-3332 Dave Begotka Wed, 14 Jan 2009 16:51:14 +0000 http://www.moslereconomics.com/?p=6092#comment-3332 Great! What is the tax on nothing? Not from not = NOT! Great! What is the tax on nothing? Not from not = NOT!

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