Arithmetic Lesson for Robert Samuelson

In a piece that supported imposing a Buffet-rule type tax on the wealthy, Robert Samuelson explained the growing income share of the 1 percent in part on the booming stock market. He told readers:

"From 1980 to 2000, stocks rose almost tenfold; from 2000 to 2007, the gain was about 40 percent."

While the first part is roughly correct, the S&P 500 rose by just 3.5 percent from 2000 to 2007. According to his source, it averaged 1427.22 in 2000. Its average close in 2007 was 1477.19.

It's good to see Samuelson get the story straight that a higher capital gains tax will not hurt growth. (The Buffet rule would effectively raise the capital gains tax rate.) But he could make his arguments better if he got his numbers right.

The Black Swan Theory Works in Reverse Ya Know
written by izzatzo, January 30, 2012 5:50 AM

Dude, do you have any idea how much time Samuelson spent studying Black Swan Theory? Didn't think so. It's the new new math ya know.

Stupid liberals.

-1

Dividends are part of returns
written by foosion, January 30, 2012 6:12 AM

When looking at stock performance you should include dividends. Just looking at price levels ignores a substantial part of returns.

...
written by skeptonomist, January 30, 2012 8:23 AM

Samuelson is apparently referring to the Dow-Jones Industrials, while Dean refers to the S&P 500:

http://stockcharts.com/freecharts/historical/

Inequality
written by clarence swinney, January 30, 2012 10:25 AM

Talk Talk Talk. numbers tell a story

Inequality since 1980

We borrowed 14,000B that, via a tax code, aided the rich in getting ultra rich.

Who will tell the people?

1980-10 Billionaires-Today hundreds some zillionaires

10% OWN (80%) OF WEALTH AND TAKE (50%) of income
80% OWN (12%) OF WEALTH AND TAKE (12%) OF INCOME. What the ?????

Wall Street press will never tell you!
Obama wil never tel you

BURN THAT TAX BOOK--FAST
Since 1980, it was a Christmas Tree filled with goodies for Rich and Corporations.

OECD RANKS US:
#2 Least Taxed people
#2 Least taxed corporations
#4 Inequality

Are you shamed? I am.
OECD shows we took 30% of our income in all fed state and local taxes

The Wall Street owned Propagandists have lied lied lied on taxes. Pathologial liars.

Fed fund election no $$ involved
Keep our govt employees on the job not on the road campaigning.

Members of Congress and White House can accept nothing with a financial value.
Keep them working at their desks.

Hear the scream in the middle of the night??
Jesus screaming "WHAT THE HELL?"
clarence achmed swinney

Arithmetic Lesson for Robert Samuelson

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