High taxes equals higher stock prices equals a better economy
Current monetary policy has worked because it has helped lift stock prices which in turn have fueled the economic recovery, former Federal Reserve Chairman Alan Greenspan told CNBC on Friday.
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"There's a real upward momentum here," he said. "I think we are underestimating and continuing to underestimate how important asset prices, very specifically equity prices, are not only to shareholders but the economy as a whole."
Greenspan is onto something: higher stock prices can indicate a better economy, at least until you try to cash in, of course. BUT...
You know what will increase the value of stocks as a whole? - keeping the highest paychecks out of the Executives' pockets, and keeping it in the company, where it can be paid out as an increased dividend. This will make the stocks more desirable and will increase their value. AND...
You can use that luxury CEO pay and buy back stocks out of the market, thus concentrating supply, and driving up the price.
I'd say if you want to increase the value of stock, quickly, tax every dollar over $2,000,000 in annual compensation at 90%. That will keep money in the company, where it can be used to pay dividends or buy back stock.
...
"There's a real upward momentum here," he said. "I think we are underestimating and continuing to underestimate how important asset prices, very specifically equity prices, are not only to shareholders but the economy as a whole."
Greenspan is onto something: higher stock prices can indicate a better economy, at least until you try to cash in, of course. BUT...
You know what will increase the value of stocks as a whole? - keeping the highest paychecks out of the Executives' pockets, and keeping it in the company, where it can be paid out as an increased dividend. This will make the stocks more desirable and will increase their value. AND...
You can use that luxury CEO pay and buy back stocks out of the market, thus concentrating supply, and driving up the price.
I'd say if you want to increase the value of stock, quickly, tax every dollar over $2,000,000 in annual compensation at 90%. That will keep money in the company, where it can be used to pay dividends or buy back stock.

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