Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

How the U.S. became a science superpower

steveblank.com

Post reply on HN
Print view View original

491–500 of 529 posts

Re: How the U.S. became a science superpower

#491

Post by fuzztester »

HDThoreaun wrote: post #445
fuzztester wrote: post #255

Earlier quoted context omitted.

>At least in the free market inefficient companies will eventually go defunct which frees those resources for more economically useful output. ha ha. you mean like in 2008 and 2009, the great recession (1), the subprime mortgage crisis (2), etc., and then things like: (1) the great recession (2) the subprime mortgage crisis TARP: https://en.m.wikipedia.org/wiki/Troubled_Asset_Relief_Progra... terms floating around at…

what happened to lehman bros, bear stearns...? The worst companies did fail. You would never see that in the government

Governments fail too - every four years (US), sometimes, or some multiple thereof.

Re: How the U.S. became a science superpower

#492

Post by amanaplanacanal »

elcritch wrote: post #483
amanaplanacanal wrote: post #442

Earlier quoted context omitted.

People have been predicting catastrophe since the 70s. Same with social security. Somehow we keep muddling along.

That attitude sounds like a college grad with a fresh credit card they keep spending on. Their parents warn them that if they keep spending on it there will be major issues. But hey, they still have like $10k of credit and they can get another card! They’re just old and predicting catastrophe all the time. Until one day they they have no more credit left and all their income goes to paying credit card interest not ev…

50 years is not "a fresh credit card". If someone predicts something and 50 years later it hasn't happened, I think it's time to re-examine their assumptions

Re: How the U.S. became a science superpower

#493

Post by anonfordays »

vaidhy wrote: post #448
anonfordays wrote: post #437

Earlier quoted context omitted.

>He can't eat with his shares. You can't eat with your brokerage account either, what is the point? >He can use them as collateral for debt. Yes, you can use your brokerage account, house, etc. as collateral for loans, this is not new or unique. >Presently, that's how he dodges taxes. What does this even mean? Loans are not taxable as you have to pay them back. >You'd close that loophole. That's not a tax... This is…

The dodgy part is what happens after someone dies. The stocks get a one-time relief from capital gains as it moves to the heir. This gives opportunity for the heirs (or the estate) to sell the stocks to pay back the loan. That is the loophole. The key here is that you need enough wealth to keep borrowing for rest of your life without touching your principle.

Too late to edit my comment, but one other thing:

>The stocks get a one-time relief from capital gains as it moves to the heir. This gives opportunity for the heirs (or the estate) to sell the stocks to pay back the loan. That is the loophole.

Yes, this step-up in basis happens because the estate is charged estate tax. Charging capital gains AND estate tax doesn't make sense, estate tax is typically higher than capital gains tax.

This is a key piece a lot of people don't understand.

Re: How the U.S. became a science superpower

#494

Post by anonfordays »

SecretDreams wrote: post #453
vaidhy wrote: post #448

Earlier quoted context omitted.

The dodgy part is what happens after someone dies. The stocks get a one-time relief from capital gains as it moves to the heir. This gives opportunity for the heirs (or the estate) to sell the stocks to pay back the loan. That is the loophole. The key here is that you need enough wealth to keep borrowing for rest of your life without touching your principle.

>The key here is that you need enough wealth to keep borrowing for rest of your life without touching your principle. Correct. The OP likely knows this. Or they're totally ignorant to it. The fact that they think joe blow can execute the aforementioned strategy is vexing.

>Correct. The OP likely knows this.

Of course I know this.

>The fact that they think joe blow can execute the aforementioned strategy is vexing.

You don't understand the aforementioned strategy, nor do you understand wealth taxes vs estate taxes.

Re: How the U.S. became a science superpower

#495

Post by VWWHFSfQ »

croes wrote: post #47
VWWHFSfQ wrote: post #28

Earlier quoted context omitted.

The US provided billions in aid and resources under the Marshall Plan to rebuild Europe and especially Japan after the war. And provided billions again to Korea after the Korean War. Japan and South Korea obviously made the most of it with their massive science and technology industries in the post-war era.

The Marshall plan’s effectiveness is more of a myth https://miwi-institut.de/archives/2898

I'm aware that Europeans think the post-war stimulus was a myth.

What isn't a myth is the billions of dollars given to them. The same billions were given to Japan and Korea and they actually used it to bootstrap an advanced, sustainable technology-driven economy. Europe squandered the opportunity.

Re: How the U.S. became a science superpower

#496

Post by SecretDreams »

anonfordays wrote: post #493
vaidhy wrote: post #448

Earlier quoted context omitted.

The dodgy part is what happens after someone dies. The stocks get a one-time relief from capital gains as it moves to the heir. This gives opportunity for the heirs (or the estate) to sell the stocks to pay back the loan. That is the loophole. The key here is that you need enough wealth to keep borrowing for rest of your life without touching your principle.

Too late to edit my comment, but one other thing: >The stocks get a one-time relief from capital gains as it moves to the heir. This gives opportunity for the heirs (or the estate) to sell the stocks to pay back the loan. That is the loophole. Yes, this step-up in basis happens because the estate is charged estate tax. Charging capital gains AND estate tax doesn't make sense, estate tax is typically higher than capit…

> Charging capital gains AND estate tax doesn't make sense, estate tax is typically higher than capital gains tax.

They should be multiplicative. Everyone is supposed to pay capital gains. And everyone is supposed to pay the estate tax. They're both percentage taxes. It's not supposed to be "pick one".

Re: How the U.S. became a science superpower

#497

Post by anonfordays »

SecretDreams wrote: post #496
anonfordays wrote: post #493

Earlier quoted context omitted.

Too late to edit my comment, but one other thing: >The stocks get a one-time relief from capital gains as it moves to the heir. This gives opportunity for the heirs (or the estate) to sell the stocks to pay back the loan. That is the loophole. Yes, this step-up in basis happens because the estate is charged estate tax. Charging capital gains AND estate tax doesn't make sense, estate tax is typically higher than capit…

> Charging capital gains AND estate tax doesn't make sense, estate tax is typically higher than capital gains tax. They should be multiplicative. Everyone is supposed to pay capital gains. And everyone is supposed to pay the estate tax. They're both percentage taxes. It's not supposed to be "pick one".

>They should be multiplicative.

That doesn't make any sense.

>Everyone is supposed to pay capital gains.

Not true. You don't pay if you have capital losses, nor do you pay if you have capital gains in tax sheltered accounts, etc.

>They're both percentage taxes.

No one claimed otherwise.

>It's not supposed to be "pick one".

That's exactly how it is in many cases, even income taxes have been that way for decades (though SALT deduction now limited). Read up on double taxation and why it's typically avoided.

Re: How the U.S. became a science superpower

#498

Post by elcritch »

amanaplanacanal wrote: post #492
elcritch wrote: post #483

Earlier quoted context omitted.

That attitude sounds like a college grad with a fresh credit card they keep spending on. Their parents warn them that if they keep spending on it there will be major issues. But hey, they still have like $10k of credit and they can get another card! They’re just old and predicting catastrophe all the time. Until one day they they have no more credit left and all their income goes to paying credit card interest not ev…

50 years is not "a fresh credit card". If someone predicts something and 50 years later it hasn't happened, I think it's time to re-examine their assumptions

And what were they predicting? Most reasonable predictions were that once the GDP to debt ratio reaches a certain point that’s when issues arise. It’s just now nearing that 100% of GDP mark. Obviously predictions on a national scale can take decades. The “fresh credit card” was handed out in the 70’s.

Just because climate change hasn’t ended the world yet in 50 years doesn’t mean it’s not a serious threat.

Re: How the U.S. became a science superpower

#499

Post by [deleted] »

BobbyJo wrote: post #194
grafmax wrote: post #174

Earlier quoted context omitted.

The idea that the free market will self-correct and optimize outcomes is a well-documented fantasy. Markets don’t account for externalities, they concentrate wealth (and therefore political power), and they routinely underprovide merit goods like education, healthcare, and basic research (things that benefit society broadly but aren’t immediately profitable). As for how to address budget issues, the solution is simpl…

Im afraid you'd need to be pretty liberal with your definition of rich at this point to dig us out of this hole through taxes alone.

[deleted]
Post reply on HN