레이블이 Definition of Adjustable Interest Rate인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Definition of Adjustable Interest Rate인 게시물을 표시합니다. 모든 게시물 표시

2013년 11월 25일 월요일

About 'definition of good debt'|Good real estate debt vs. bad real estate debt







About 'definition of good debt'|Good real estate debt vs. bad real estate debt








               I               am               going               to               try               to               do               some               things               that               politicians               won't               do               in               discussing               the               National               Debt,               Taxes,               Unemployment,               Medicare/Medicaid,               Social               Security,               and               Federal               Expenditures.

I               am               going               to               discuss               these               issues:               
               LOGICALLY               
               FACTUALLY               
               First               I               need               to               say               that               I               do               have               pre-conceived               notions.

I               was               taught:               
               1.

You               get               what               you               pay               for.


               2.

There               ain't               no               such               a               thing               as               a               free               lunch-TANSTAAFL!---(Thanks,               Robert               Heinlein.)               
               3.

The               world               owes               you               a               living,               you               just               have               to               work               your               butt               off               to               collect               it.


               4.

I               have               to               keep               my               promises.


               5.

I               have               to               help               others               who               need               help,               for               one               day,               I               may               need               help.
               6.

I               have               responsibilities               to:               
               a.

Myself               
               b.

My               Family               
               c.

My               community               
               d.

My               Nation               
               e.

The               World               
               And               I               should               be               judged               on               how               many               of               those               levels               of               responsibility               I               fulfill.

               Let               us               begin-shall               we               start               basic               facts?


               
               1.

Like               an               individual               or               family-a               government               has               an               income-for               a               government               it               comes               from               taxes-for               most               of               us,               it               comes               
               from               work,               and               for               a               few               of               us,               it               comes               from               inherited               wealth.

2.

Like               an               individual               or               family-government               has               expenses-they               are               for               things               that               it               needs               to               do,               or               things               that               it               was               told,               by               us,               through               elections,               that               it               should               do.

3.

When               Income               does               not               keep               up               with               Expenses-Debt               is               created.

Government               makes               promises               for               future               and               spends               money               now               for               things               that               will               benefit               us               over               a               long               or               short               period               of               time-like               building               roads,               schools,               or               educating               our               children.

Debt               is               not               a               terrible               thing               IF               the               debt               is               reasonable               based               on               income.

Most               of               us               go               in               debt               for               things               like               a               House,               car,               education,               or               the               unexpected               like               a               flat               tire,               medical               expenses,               or               I               REALLY               REALLY               WANT               THAT!

4.

Things               that               have               made               America               great               have               been               our               trying               to               make               our               society               better               than               the               old               European               societies               our               forefathers               left               behind.

We               tried               things               like:               
               a.

Free               Education-this               enabled               people               to               learn               and               be               able               to               invent,               create,               and               improve               things-we               became               one               of               the               most               inventive,               creative               societies               in               history.


               b.

Services-Fire               protection,               cheap               mail               services               (I               know               this               is               old-but               it               was               communication-sharing               of               ideas),               public               roads,               and               the               list               goes               on.


               c.

Eliminating               Child               Labor,               setting               up               programs               that               would               allow               people               to               retire               and               still               feed               and               clothe               themselves               (Social               Security),               setting               standards               for               safety               in               work               places,               setting               up               standards               for               how               much               junk               could               go               in               our               drinking               water,               and               the               list               goes               on.

5.

TERMS-               
               a.

GDP---Gross               Domestic               Product-the               value               of               goods               or               services               created               or               made               in               one               year               by               our               country.


               b.

Taxes-What               we               pay               to               the               government               based               on               
               i.

Our               Income               from               work               
               ii.

Our               Income               from               wealth               
               iii.

Our               Profit               from               our               Business               
               iv.

Gifts               and               Value               we               won               or               received               
               OK,               now               we               have               some               facts,               you               know               my               preconceived               notions.

So               let's               tackle               the               issues               of               National               Debt,               Taxes,               and               what               should               Government               do!


               NATIONAL               DEBT---as               explained               above,               the               United               States               has               gone               in               debt               for               doing               things               it               was               told               to               do               by               the               people               who               run               it.

For               example               we               went               in               debt               to               fight               World               Wars-and               smaller               wars.

We               went               in               debt               to               build               highways               that               allowed               for               goods               to               be               shipped               all               over               the               US,               we               went               in               debt               to               help               states               with               the               costs               of               educating               our               society.

We               probably               went               into               debt               for               doing               some               things               that               did               not               HAVE               to               be               done,               but               we,               as               a               society               thought               they               SHOULD               be               done.


               Our               current               National               Debt               is               about               70               %               of               our               Gross               Domestic               Product.

(Note:               I               chose               to               use               the               comparison               between               debt               and               GDP               because               it               provides               a               comparative               that               tries               to               factor               out               inflation               and               changes               in               productivity               and               national               income)
               Thirty               five               years               ago               our               National               Debt               was               33.3%               of               our               GDP.

So,               in               thirty               five               years               our               National               Debt               has               gone               up               from               1/3               of               our               GDP               to               almost               3/4               of               our               GDP.
               How               did               this               happen.

Well,               it               happened               the               way               you               and               I               go               in               debt.

We               spent               more               than               we               received!

Not               too               hard               to               figure               out.
               Why               did               it               happen?

If               you               or               I               lose               our               job,               our               income               goes               down.

That's               one               way.

Or,               I               buy               a               new               car               or               house---I               spend               more-SO               More               Debt.

What               happened               to               the               US?---We               cut               taxes               (lowered               our               income)               and               we               spent               more               (raised               our               outgo).
               Who               did               it?

What               President(s)               were               responsible               for               raising               our               National               Debt?

And               HOW               did               they               do               it?
               When               Jimmy               Carter               (Dem)               was               President               at               the               end               of               his               term,               the               National               Debt               was               33.3%               of               GDP.


               When               Ronald               Regan               (Rep)               left               office               our               National               Debt               was               51.9%               of               GDP               an               INCREASE               OF               55.86%               
               How               did               it               happen-His               administration:               
               1.

Cut               Taxes               (Government               Income)               
               2.

Spent               More               (no               wars-but               Missile               Defense,               Lots               of               Defense               Spending)               
               When               George               H.W.

Bush               (Rep)               left               office               our               National               Debt               was               67.3%               of               GDP               ANOTHER               INCREASE               OF               29.67%               
               How               did               it               happen-His               administration:               
               1.

Cut               Taxes               (Government               Income)               
               2.

Spent               more               (First               Iraq               war,               Lots               of               Defense               Spending)               
               When               William               Clinton               (Dem)               left               office               our               National               Debt               was               57.6               %               of               GDP-A               REDUCTION               OF               14.41%               
               How               did               it               happen-His               administration               
               1.

Did               NOT               cut               taxes,               increased               them               by               closing               loopholes               
               2.

Spent               as               much               as               before               
               When               George               W               Bush               (Dem)               left               office               our               National               Debt               went               up               to               69.3%--The               HIGHEST               EVER               and               an               INCREASE               OF               20.31%               
               How               did               it               happen-His               administration:               
               1.

Cut               Taxes               (Government               Income)               
               2.

Spent               more               (Afghan               War,               Second               Iraq               war,               Lots               of               Defense               Spending)               
               Does               anyone               ELSE               see               a               pattern               here?

Reduce               income               (Taxes)               -Debt               Goes               up!


               So,               what               we               see               is               that               every               time               the               Republicans               won               the               Presidency,               they               
               1.

Cut               Taxes               (particularly               for               Corporate               and               wealthy,               with               smaller               cuts               for               working               people.)               
               2.

Created               Loopholes-Tax               Incentives               for               Corporate               America               
               3.

Increased               the               National               Debt.
               Why,               if               they               just               looked               back               in               time,               they               would               see               the               same               thing,               WHY               DO               THE               SAME               THING               OVER               AND               OVER               
               AGAIN.

The               definition               of               insanity               is               -Do               the               same               thing               over               and               over               and               expect               a               different               result!
               The               Republicans               will               tell               us               that               they               were               improving               the               country,               doing               good               for               the               country,               they               had               good               intentions.

I               heard               somewhere               that               the               road               to               a               hot               place               is               paved               with               "good               intentions."               They               also               tell               us               the               same               thing               they               are               saying               today---               
               IF               YOU               CUT               TAXES-------YOU               WILL               CREATE               JOBS.


               Sorry               GOP-that               is               NOT               TRUE!


               Let's               go               back               almost               50               YEARS               and               see               

               Lyndon               Johnson               (Dem)               Average               Unemployment               during               his               term---4.2%               
               Richard               Nixon               (Rep)               Average               Unemployment               during               his               term---UP               19.05%               
               Gerald               Ford               (Rep)               Average               Unemployment               during               his               term-UP               ANOTHER               56%               
               Jimmy               Carter               (Dem)               Average               Unemployment               during               his               term-DOWN               16.67%               
               Ronald               Reagan               (Rep)               Average               Unemployment               during               his               term-UP               16.72%               
               George               H.W.

Bush               (Rep)               Average               Unemployment               during               his               term-DOWN               to               6.3%               (down               17.1%               from               Regan)               
               William               Clinton               (Dem)               Average               Unemployment               during               his               term-DOWN               17.46%               
               George               W.

Bush               (Rep)               Average               Unemployment               during               his               term-UP               2%               
               So,               CUTTING               TAXES               DOESN'T               SEEM               TO               CREATE               JOBS,               BUT               IT               CERTAINLY               RAISES               THE               NATIONAL               DEBT.


               "Trickle               Down"               did               not               work               for               Herbert               Hoover,               "Supply               Side               Economics"               didn't               work               under               Reagan,               Bush               Tax               Cuts               didn't               work               for               George               W               Bush.

If               it               ain't               worked               in               80               years---why               should               it               work               now?


               SO,               THE               REPUBLICAN               PROPOSALS               TO               CUT               THE               NATIONAL               DEBT               ARE:               
               1.

Cut               Social               Security               (Workers               have               been               paying               into               this               since               the               1930's)               
               2.

Cut               Medicare               (Workers               have               been               paying               into               this               since               1965)               
               3.

Cut               Medicaid               (let's               make               sure               the               poorest               have               no               medical               care)               
               4.

Cut               Food               Stamps               (when               unemployment               is               high)               
               5.

Cut               Department               of               Education-Historically               one               of               the               things               that               made               us               great-EDUCATION               
               6.

Cut               the               EPA               (Environmental               Protection               Agency)               to               make               them               stop               trying               to               cut               greenhouse               gases,               air               pollution,               water               pollution,               and               stop               giving               grants               to               maintain               drinking               water               standards               
               7.

Cut               the               FDA               (Food               and               Drug               Administration)               stop               wasting               money               on               food               safety-only               .1%               of               the               food               may               be               unsafe---(But               that               causes               over               128,000               hospitalizations               AND               3,000               DEATHS               a               year               from               unsafe               food.)               
               8.

Here               are               some               more               of               the               proposed               cuts               
               a.

--               $169               million               from               nuclear               energy               
               b.

--               $593               million               from               the               Internal               Revenue               Service               
               c.

--               $74               million               from               the               FBI               
               d.

--               $379               million               from               NASA               
               e.

--               $544               million               from               international               food               aid               grants               
               f.

--               $6               million               each               from               the               National               Endowment               for               the               Arts               and               National               Endowment               for               the               Humanities               
               g.

--               $2               billion               from               job-training               programs               ---with               unemployment               high-cutting               job               training?

Makes               sense????


               h.

--               $1               billion               from               the               National               Institutes               of               Health               (note,               that               include               Poison               Control               Centers)               
               i.

--               $224               million               from               Amtrak               
               j.

--               $755               million               from               the               Centers               for               Disease               Control               and               Prevention
               We               are               almost               at               the               end               of               the               discussion---So,               now               I               ask               a               question               of               the               reader-How               about               cutting               loopholes               in               Corporate               Business               taxes               that               the               NY               Times               says               amount               to               ALMOST               1               TRILLION               DOLLARS               A               YEAR               in               lost               Taxes               (950               BILLION)               Particularly               when               reports               are               always               coming               in               about               the               businesses               that               have               profits               in               the               BILLIONS               and               pay               NO               TAXES.

When               Billionaires,               like               Warren               Buffett               pay               a               lower               percentage               of               their               income               in               taxes               than               their               employees               (working               people)               pay,               SHOULDN'T               THERE               BE               FAIRNESS?



               Think               about               this--companies               -               which               include               household               names               like               eBay,               Boeing,               General               Electric               (Msnbc.com               is               a               joint               venture               of               Microsoft               Corp.

and               NBC               Universal,               which               is               jointly               owned               by               Comcast               Corp.

and               General               Electric)               and               Verizon               -               averaged               $1.9               billion               each               in               profits.

But               a               variety               of               shelters,               loopholes               and               tax               reduction               strategies               allowed               the               companies               to               average               more               than               $400               million               each               in               tax               benefits               -               which               can               be               taken               as               a               refund               or               used               as               write-off               against               earnings               in               future               years.
               Verizon,               which               earned               $11.9               billion               in               pretax               United               States               profits,               received               a               federal               tax               refund               of               $705               million.

The               company's               chief               executive,               Ivan               Seidenberg,               meanwhile,               received               $18.1               million               in               compensation.

The               online               retailer               eBay               reported               pretax               profits               of               $848               million               and               received               a               $113               million               federal               refund.

John               Donahoe,               eBay's               chief               executive,               collected               a               compensation               package               worth               $12.4               million.






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