There is no investment in tax cuts in jobs

Tech stocks are taking a hit, despite the fact some industry giants spent billions of dollars buying back their own shares in a bid to drive up their value. (Brendan McDermid/Reuters)

New research comes from one of the most influential business newspapers in the world. According to this investigation, it was obtained that more than 100 billion US dollars in tax cuts that were supposed to “make the United States big” were destined to the well-off investors of the American technology companies. While for its part, the prices of technological stocks show a bit of weakness. In fact, there are growing concerns that, instead of investing fiscal benefits in something that would last, much of that money has been wagered on what has been termed as casino capitalism.

The economist John Maynard Keynes in his groundbreaking 1936 work, The General Theory of Employment, Interest and Money, wrote “When a country’s capital development becomes a by-product of casino activities, it is likely that the work is badly done”.

Meanwhile, if stocks continued with their recent declines, all that money withdrawn from government revenues and used to raise shares using share buybacks and dividend payments could simply disappear into thin air. It should be noted that for their part, taxpayers will be left with a greater national debt and greater requests for cuts in public spending to balance the budget.

Likewise, the United States could have had problems competing with wages even companies in China are automating their factories. There is no reason why these factories, the new technology to implement them and the well-paid jobs so that all this happens cannot be located in the United States instead of in China.

In addition to this, despite the drop in the unemployment rate in the United States, jobs continue to go abroad, while investors are enriched by speculation.

In addition, any of the repurchase money that disappears as share prices fall could have been left in the public purse to invest in infrastructure and medical care and education for the poorest, things that could really make the United States again big.

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Source: Don Pittis | CBC News