Comments

Episode-1913- Listener Feedback for 12-12-16 — 26 Comments

  1. I’m curious about Jack’s comment about a dollar generating MORE than a dollar via sales tax and trying to understand better.

    I’d personally have thought if you simply track a single dollar through the system and use the 10% sales tax, you spend $1.00 at a store generating a liability of $0.10 in sales tax. The guy who receives a dollar in change is only actually getting $0.90 in change of THAT particular dollar. The store still needs to “keep” the ten cents to pay the government when it comes to tax time. If all of that dollar is given to the next customer, then the sales tax that’s paid is coming from another dollar the store has collected.

    Yes, he the next customer getting your physical dollar in his change, but $0.10 of that represents some of the other dollars you spent there.

    And when that person spends it at the next store, $0.09 cents of that $0.90 is sent back to the government via sales tax. And then the next guy is using $0.81 of the original “dollar”.

    Now I agree that eventually all of that dollar will make its way back into government hands, but WITHOUT lending (or banks creating money), I can’t see how that one physical dollar can create more money via a simple chain of transactions.

    Can someone explain further pls?

    Thanks in advance 🙂

    • Two comments:
      A penny saved is a tax free penny earned…
      The dollar keeps generating taxes if it stays in the US. We could do great things for the US economy by just making an effort to spend money on US made goods.

      • Paul, did you know that on the majority of foreign goods, even cheap Chinese crap, Americans make more profit on them then the country that produced them?

    • In your example you must be assuming that the 10 cents disappears when it goes to the fed. Keep in mind that it also returns into the economy one way or another.

      • Precisely and what happens to most dollars in our economy?

        They end up in a bank, then what happens?

        • They take a cut in fees for holding it in “their” checking account, issue more debt increasing the monetary supply, take a cut for the issuance of that debt, charge interest on that debt. Rinse, Repeat. Oh, and also decreasing the value on our savings by diluting the value of the currency. I have always thought that this was part of the cause of the Great Depression. The masses thought that we were on a gold standard when we actually weren’t. Even if there were a dollars worth of gold for each printed gold certificate, there was not enough for the actual money in circulation.

        • You are missing the most important component.

          They lend money on the money they hold! That dollar in a bank can and will result in 9 dollars being lent into the economy.

          Each of those in this scenario will be spent over and over generating that dime in tax, and end up in a bank and do so again, again, again, etc.

  2. For the person that requested ideas for coat hangers from dry cleaners. If you still have coat hangers left after all the crafts – your dry cleaner will probably take them back.

    You can request a…caddy? I don’t know what they call it but it’s a box designed for coat hangers. My dry cleaner gave me one and every time I fill it up I give them back next time I drop off/pick up my clothes.

    Hope that helps.

  3. Metal coat hangers are basically the same thing as welding rid without the flux. Redneck welding could be survivally. Grab an acetylene torch and weld away.

  4. When I moved to my semi-rural neighborhood just outside of Austin three years ago, I sent a letter by snail mail to all 15 or so homes on my dead-end lane, which introduced myself, and gave a little history of how this California city girl ended up in a rural neighborhood in Texas etc., The letter was brief and friendly and included with a picture of myself printed on the letter. I invited everyone to contact me and included my email address and cell phone number. I got maybe 4 responses, 1 by email and the rest stopped by to say hello. I would still do the same if I ever moved again but I must say the response was a bit underwhelming.

  5. Greetings Jack,

    Is there a video available that I can use to introduce my company to real disaster preparedness?

    The company owner wants employees to have some sort of disaster preparedness and I think it would be nice to be able to hand over a video that would be a basic “Prep-101: Getting Started” that could be shown to my fellow employees and would be 10-15 minutes, 30 at most.

    Is there anything that fits this?

    Keep up the good work,
    Duncan

  6. Don’t show this to your wife, but apparently some people think “Baby, it’s Cold Outside” is about rape.

    It’s about 2 or 3 times a week that I ponder whether or not I live in The Twilight Zone.

    • I sent it to my wife and she said women who complain about things like that go home and read cheap romance novels. (My wife reads them too, so nobody get all mad at me if you like those books.)

  7. .357mag from a pistol…mmm maybe but I don’t pistol hunt so I don’t know but a .357mag rifle SURE! Especially with a flat point bullet.

    Family took deer way back with a .32-20 so I never understand people objecting to smaller than “insert magnum of the year”

  8. A Roth IRA always always always (almost.) The beauty of the Roth is that you are taxed up front and not taxed on the gains. The selling point for the traditional is that you are taxed on it after retirement as you draw it out while you are (probably) in a lower tax bracket. There is a floating line as you approach retirement where the advantage of the Roth dwindles because of the lower potential gains due to the lower time for those gains to accrue. I’ll save Jack a reply here, “at this point you should not still be putting that new money at risk in the markets for such little potential gain”

    A reason that a traditional CAN be an advantage:
    There are some limited instances where a traditional IRA / 401K can be rolled over into a Roth. If you have bought into a traditional while the market is up you are not taxed on your contributions at that time. If you roll that account into a Roth while the market is down you are taxed on the value of the account at the time of the rollover. When I did this during the last (correction) I was taxed on roughly .50 on the dollar. To do this you MUST HAVE THE CASH TO PAY THE TAX FOR THIS TAXABLE EVENT ON THAT TAX YEAR.

  9. After years of going for walks in my neighborhood, I smile and wave at all my neighbors at some point and they do the same thing back. I may not know all their names and email addresses but wouldn’t hesitate for a second to knock on their door for anything and be very comfortable doing so.

  10. Uses for coat hangers ,Duluth trading sells a jig to bend coat hanger into useful shapes for the shop and homestead.

  11. Jack,

    Thanks for reading my email on the show “A new, simple, cool, easy way to meet the new neighbors”. I sent it to a Realtor friend. He is adding it to his customer’s packet and is passing it on to everyone he can. I feel like I got some good shit done this year 🙂

  12. Just cut up a bunch of coat hangers into custom length staples to anchor our Christmas angel lawn ornament after the latest cold front blew through. Came here to post this “new idea” and saw two people had already posted to use them as landscape fabric anchors. Great minds think alike. Merry Christmas.