The notion of tax cuts came up in casual conversation a few days ago. While unpacking from my recent move I stumbled across an Economic Policy Institute article from 2005/2006 (Price2005_No_Boom). Long story short, tax cuts can boost an economy if directed at the middle class. However, the Bush tax cuts benefited Bill Gates much more. $860B+ in tax cuts but no economic growth to show for it. Please read the article for yourself and reach your own conclusions.

However, remember, do not cling to what you “know” because if you do, when understanding comes knocking at your door you will not answer. Then what are you clinging to? Continually update your understanding my friends…

http://www.pewsocialtrends.org/2013/04/23/a-rise-in-wealth-for-the-wealthydeclines-for-the-lower-93/

Who is going to take a cut? Those who worked 20 years and retired or the investors who took the risk in buying Stockton bonds? I wonder if the pension fund (CalPERS) also owns Stockton bonds… http://mobile.reuters.com/article/idUSBRE9300GP20130402?irpc=932

All I can say right now is “wow!”

http://rt.com/usa/monsanto-congress-silently-slips-830/

http://www.nytimes.com/2013/03/18/opinion/krugman-marches-of-folly.html?_r=0

Shouldn’t shareholders have the final and direct say on executive compensation? Note that in the US and UK shareholders votes on executive compensation are non binding. That is, even if shareholders here do not like the pay packages of executives, and pass a vote to cut compensation, executives are not legally required to cut their pay. Don’t we teach FIN101 students that executives work for the shareholders? How did we get to the point where executives can collect money from shareholders (think Facebook IPO) then do whatever the hell they want to? Of course the puppets of the wealthy cite the same old tired concerns: executives are top talent, this will cause companies to leave, these are the job creators, etc. I say enough is enough. We frequently hear about cost cutting and reducing wages of employees. It is about time we have the discussion of cost cutting and reducing wages with respect to executives. Executives are employees too… of shareholders. The masses own shares in their retirement accounts. Let your voices be heard. http://m.cbsnews.com/fullstory.rbml?catid=57572249&feed_id=null&videofeed=null

Thanks to the MBA220 students for their submissions on this one.  I have modified and combined a couple of the submitted pictures here.  If anyone would like to animate this AIG PowerPoint and save it as a movie (I believe it can be done with powerpoint) I would appreciate it.