When I listened to all those politicians, including the Republican Congressmen, certain Democratic Congressmen, and President Obama, talk about how all of us—that is, the lower and middle classes—have to share the pain of our national debt and cut social security and medicare, I shake my head in sad disbelief at their moronic understanding of economics. You do not need to be Paul Samuelson to know that if wealth becomes too concentrated among the top 2% of our population, that total consumer purchasing power shrinks, stunting economic growth. It’s common sense. You do not need a Ph. D. from MIT to realize that.
Block out all of the nonsense that you have been hearing about how trickle down economics and how not taxing the rich creates jobs…lol. What BS. It doesn’t: it just makes the rich richer; the rich are just duping you. Bush lowered tax cuts and what happened? People lost their jobs and the rich got richer.
It’s commonsense that if consumers have more income, they buy more cars, more homes, more goods. Manufacturers, in turn, produce more goods and hire more workers and pay higher salaries. And, in turn, consumers spend more. And what happens? It snowballs.
What we have experienced over the past 10 years from those material tax breaks for the elite rich and the outsourcing of jobs is the exact reverse. Less disposable income available to the lower and middle classes; less purchasing power; less goods sold; less manufacturing; less employment; leading to even lesser disposable income, lesser purchasing, lesser manufacturing, lesser employment. And so it goes on and on.
To stop this train wreck, simply hike taxes on the rich, but add a sweetener: offset some of those tax breaks with significant tax credits for employment and production here in the U.S., generating more disposable income, in turn, leading to more consumption, more production, more employment, and even more income, consumption, production, employment.
It’s a win-win for all, including the rich. True, the rich pay more taxes initially, but with the increase in GDP, stocks rise, and so does their wealth. And the deficit shrinks, too.
It’s really quite simple. It makes you wonder why we elect morons to Congress and to the Presidency, doesn’t it? Or are they morons? Perhaps they are just crooked, just concerned about raising campaign contributions from their rich donors and benefactors so they can be re-elected to office and remain in power. And eventually upon leaving office, they can be further rewarded by their rich benefactors with plum jobs managing the elite’s corporations with multi-million dollar salaries, influencing future legislation. Nice work if you can get it.
And remember what happened when Bill Clinton raised taxes on the rich? 22 million jobs were created. That Laffer Curve from Reaganomics is a big joke, with the laugh on you, my dear friend of the middle class!