What is investment? Is it buying stock in  a company hoping that 10 years from now it will turn into Apple or Google having exponential growth and return on investment. Or are we investing for the dividend? The problem is that the low capitol gains rates on both encourages the BOD, who are often major stock holders, to be short sided increasing dividends rather than investing in R&D and the type of growth that creates jobs. Not to mention accounting “innovations” and stock buy backs. We only have to look at the exploding deficit and exodus of jobs to realize that entire supply side theory is a myth. The combined market free for all is what led to pressure for more deregulation, the tech bubble and the now housing bubble, as well as raiding of pension funds ect.

If we want to really fix the problems we need to start to undue the mistakes that got us here

by sisco66 on 09/21/2008 08:09:18 AM EST

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