Andrew Magdy Kamal

Founder & CEO, AndSocialREW

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Is the stock market failing

Is the stock market failing do the higher tax rates on larger business, that garnish their opportunity to make more money?

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    Jul 17 2013: That talk is awesome.

    What makes you say that stock market is failing?

    There is a correlation between higher government meddling and less commerce. Small business grows through investment, investment capital goes where it can get the best return. An empirical example of this would be the rate that business leaves California and goes to other states with lower taxes and regulations. This of course also applies to other countries, especially with the advent of Sarbanes Oxley.

    Ted Friend will dispute this but he is ignorant about this subject. I will not respond to his incessant ramblings, don't mistake that to mean I cannot disprove is BS, I just refuse to waste my time. If you have any questions ask away.

    To get a further understanding of this subject I recommend a huge volume of TRUE economic knowledge available here:

    http://mises.org/
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      Jul 17 2013: Well we would never know right? That's where empirical economics fails miserably.

      Theoretically, simple supply/demand curves would tell use that the equilibrium prices for goods increases, and total utility as well as efficiency decreases.
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          Jul 17 2013: Whoops. I pulled a Malthus and forgot about productivity haha.

          Point taken.
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    Jul 16 2013: What do you mean by failing? Overall health? Red and Green stock quotes? Does being in a bubble count as "failing?"

    The DOWJIA hit it's all time high, so it *looks* good.

    You could define "failing" as "not being efficient" in which case an economist would tell you that taxes/any government program that interferes with the free market will decrease efficiency (theoretically).