Drudge Retort: The Other Side of the News
Wednesday, November 15, 2017

President Trump's top economic adviser, Gary Cohn, looked out from the stage at a sea of CEOs and top executives in the audience Tuesday for the Wall Street Journal's CEO Council meeting. As Cohn sat comfortably onstage, a Journal editor asked the crowd to raise their hands if their company plans to invest more if the tax reform bill passes. Very few hands went up. Cohn looked surprised. "Why aren't the other hands up?" he said. He laughed a little to lighten the mood, but it didn't cause many more hands to rise.

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First, American businesses are already enjoying record profits. If they wanted to invest, they have plenty of money on hand to do it, says Howard Silverblatt, a senior analyst at S & P Dow Jones Indices, where he tracks all the financial decisions of S & P 500 companies.

Second, executives themselves have indicated they probably won't use extra profits to invest.

The results of the Bank of America poll show a very similar pattern of corporate behavior to what happened after the 2004 tax repatriation holiday when U.S. companies spent the majority of their money coming back home from overseas on stock buybacks. It was a payday for Wall Street investors that generated little benefit to the middle class and wider economy.

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If the Democrats had half a brain, every one of them within shouting distance would be waving these facts in front of news cameras and reporters both national and local as the most important reason the GOP's Tax Cut Scam is not going to help the middle class because the upper class - in their own words - has no notion of letting their windfall "trickle down." They are going to keep the money, seek further acquisitions, and buyback their own stock - yet again increasing income and economic disparity - while blowing a hole into the federal budget for the programs directed toward the majority of citizens not in the 1% and ballooning the deficit - all for the sake of giving money to those already flush with it!

Main street in the reddest of states can understand a boondoggle when they see one and this might be the most egregious example to escape the GOP fever swamps since their last monstrosity. Standing opposed to this bill is a no-brainer for all the reasons listed above and already confirmed by the business leaders who'll receive this unwarranted largess. Broadcast it!

#1 | Posted by tonyroma at 2017-11-15 10:45 AM | Reply | Newsworthy 3

We've seen this movie before. Fool me once shame on you, fool me twice shame on me. Cohn was only surprised beceause the CEOs didn't go along with his lie, you'd think they would at least pretend.

#2 | Posted by danni at 2017-11-15 10:57 AM | Reply

If the Democrats had half a brain, every one of them within shouting distance would be waving these facts in front of news cameras

Republicans are allergic to facts. 40 years of failed supply side theory has shown that. If it were to get on the news, if it isn't Faux Nuze then they have been conditioned to call it FAKE NEWS. You can't fix stupid, only muffle it with duct tape.

"Giving money to rich people didn't work, so this time we will try giving money to rich people." - Paul Ryan.

#3 | Posted by 726 at 2017-11-15 01:50 PM | Reply

People don't invest money in businesses or hire people just because taxes are low. They invest or hire if there is a NEED to do so. Concentrating more than 1/2 of the world wealth in the top 1% is not going to create demand to require investment or hiring. The 1% will just stash the money on off shore tax havens to avoid paying their share of taxes.

#4 | Posted by 726 at 2017-11-15 01:52 PM | Reply | Newsworthy 1

Watch CEOs admit they won't actually invest more if tax reform passes

A telling and important moment: www.vox.com

#5 | Posted by BruceBanner at 2017-11-15 02:28 PM | Reply | Newsworthy 1

But, what about the Tinkle Down Effect?

He should have asked how many employers will tinkle on their employees if they get to pay less taxes.

Maybe he would have gotten a few more hands.

#6 | Posted by donnerboy at 2017-11-15 02:37 PM | Reply

The theory of higher corporate profits going toward increased employment and higher wages is, in effect, not far from Socialism. Since when is The Dotard, his cabal and the GOP congress made up of Socialists?

What kind of drugs has Gary Cohn been taking to ask a room full of capitalists what he asked them? How can a capitalist have any other answer to the question of what he/she will do with increased profits than to reply with 'stock buybacks, dividends and more pay for company executives'? Your typical capitalist is trying to maximize the value of the firm, and if a firm sees more profit because of a change in tax policy--and not because of a change in the means of production--then those increased profits will be considered found money, and treated as a windfall. Any firm which makes long-term decisions on hiring and pay based on tax policy is foolishly playing with fire, since that policy can easily be changed.

#7 | Posted by catdog at 2017-11-15 05:01 PM | Reply

No company has ever hired even 1 employee because they got a tax break and had some extra money they needed to spend.

If they have profitable work to be done that requires 50 employees they wont hire 49 and leave profit on the table and no amount of cash in their pocket will make them hire 51

#9 | Posted by hatter5183 at 2017-11-15 05:22 PM | Reply

President Trump's top economic adviser, Gary Cohn, maybe shouldn't be an economic adviser if he wasn't aware of how things really work.

#10 | Posted by Sycophant at 2017-11-15 05:39 PM | Reply

What kind of drugs has Gary Cohn been taking to ask a room full of capitalists what he asked them?

#3 | POSTED BY CATDOG AT 2017-11-15 05:01 PM | REPLY

Opiod based painkillers.

#11 | Posted by sitzkrieg at 2017-11-15 06:23 PM | Reply

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Bravo to the CEOs for their honesty. The White House could use some of that.

#12 | Posted by mOntecOre at 2017-11-15 06:36 PM | Reply

A republican will have to tell me why I would expand my business or pay my employees more if I have less customers due to increased taxation on the customers to cut my taxes.

Isn't that bypassing the reason to expand my business?

#13 | Posted by BruceBanner at 2017-11-15 07:19 PM | Reply | Newsworthy 2

The reason hands did not and will not go up is lack of demand. All the positive economic indicators are related to the Federal Reserve's giveaway to the rich crooks the destroyed the global economy. The bailouts, QE1,2 & 3 created another
stock market bubble.

Kansas has had a huge Republican tax cut, which has been an unmitigated disaster, unable to deliver on any of its promises, on employment, education, budgets....That the results of this case study is ignored by Republicans is both absurd and outrageous.

Cohn is an idiot who drinks the neo-liberal kool-aid. Trump wouldn't hire any other type. Republicans are digging themselves into a deep hole.

It will be up to Democrats to formally screw over the middle class after they recover from their nationwide trouncing. That is the only behavior acceptable to the all important 1% that sponsor ALL politicians.

#14 | Posted by bayviking at 2017-11-15 07:28 PM | Reply

I used to be disgusted
But now I try...
...ok, never mind. I'm actually just more disgusted.

How anyone can still be pushing Trickle Down with a straight face is beyond me. Is he naive? Or just pretending?

#15 | Posted by cbob at 2017-11-15 09:07 PM | Reply

How anyone can still be pushing Trickle Down with a straight face is beyond me. Is he naive? Or just pretending?

#9 | POSTED BY CBOB

There's no need to push it, the rubes have heard it for so many years, they have it memorized; they believe it.

#16 | Posted by oldwhiskeysour at 2017-11-15 11:00 PM | Reply

Someone should have asked him why anyone in 2017 would still believe in Trickle Down. What a fool.

#17 | Posted by Sully at 2017-11-16 09:22 AM | Reply

Where are all the righties? Haven't gotten your new, improved, talking points yet?

#18 | Posted by WhoDaMan at 2017-11-16 05:45 PM | Reply

Large corporations are not and never have been job creators. Most years fortune 500 companies have a small net gain in employment because they fire a lot of employees in mergers and aquisitions.

In recent times corporations have been raking in record profits and have not been using that money to hire anyone.

Can someone explain the republican logic that says that corporations that have not hired anyone or raised wages from the $2.1 TRILLION in profits that they took in last year will suddenly raise wages and hire people if we give them a $200 Billion tax break on top of that?

#19 | Posted by hatter5183 at 2017-11-16 05:52 PM | Reply | Newsworthy 2

"Concentrating more than 1/2 of the world wealth in the top 1% is not going to create demand to require investment or hiring."

But it did result in a Da Vinci selling for a half billion dollars.

#20 | Posted by snoofy at 2017-11-16 06:12 PM | Reply

But it did result in a Da Vinci selling for a half billion dollars.

#20 | POSTED BY SNOOFY

Unfortunately, though, he's dead. So no income for him.

#21 | Posted by WhoDaMan at 2017-11-16 09:43 PM | Reply

"Concentrating more than 1/2 of the world wealth in the top 1% is not going to create demand to require investment or hiring."
But it did result in a Da Vinci selling for a half billion dollars.

#20 | POSTED BY SNOOFY AT 2017-11-16 06:12 PM | REPLY

Somebody earned $10 spending an hour cleaning up after the auction.

DR righties: See? trickle down works! Lets give the rich another $200 Billion!

Captain obvious: Isn't giving person A $10 cheaper than giving person B $500,000,000 in the hopes that person A gets $10 for cleaning up after person B?

#22 | Posted by hatter5183 at 2017-11-17 10:59 AM | Reply

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