One of the more frustrating topics in politics; especially for rational people who are driven by evidence, is conservative ideology around economics. Many of the articles of faith of what is now mainstream conservatism are difficult, if not impossible to square with logic and to support with facts. Of course, facts never stand in the way of conservative fervor - I think conservatives all too often are of a mind to believe whatever they wish, rather than knowing what is and accepting it. One example is the belief that of the more than 2000 religions in the world, somehow the sheer luck of fate of being born in America means Christianity is somehow true and all other religions false. That is, of course, moronic. Christianity is just as much a human superstition as any other religion - but back to politics and economics.
Let's look at just one economic policy belief. This belief is the centerpiece of conservative economic world view, even though it is easily proven false. Supply-side economics (aka Trickle Down Economics, or as Republican President George HW Bush called it, "Voodoo Economics") is the theory that the wealthy are job creators (despite almost no evidence) and therefore must be taxed at lower percentage rates than everyone else. The "theory" (again, which is demonstrably false) is that by keeping tax rates low on the wealthy, these successful Americans will invest in companies and start businesses and therefore create jobs.
The theory is a complete fantasy, a fiction, and the near constant repetition of the theory is called "lying" and endless policy proposals to implement this nonsense by politicians on the right is a ruse to implement their actual main objective of creating a plutocratic America, ruled by the rich and corporations where ordinary people are just grateful to have jobs. Still, the trickle down theory exists, the practice of trying to further implement it persists, and for 30 years we have tried this grand experiment in supply-side economics, taxing the wealthy at historically low rates. So what happened to job growth during this time? It remains at an almost all time low. How many more decades of lost middle-class workers and middle-class college grads looking for work will be stranded while we continue this insanity? And how much more wealthy will the top 5% become at the expense of everyone else before we stop this nonsense?
Partisans on the right argue that the reason Supply Side theory has not worked, and it clearly has not, is that we are simply not fully committed to it. That is horse-hockey. Example: The Bush Tax cuts of 2001 and 2003 lowered tax rates on the wealthy - during that time job growth has been non-existent. If this supply-side fiction worked, "we would be drowning in jobs", as Nick Hanauer says in his recent TED Talk...
Let's look at just one economic policy belief. This belief is the centerpiece of conservative economic world view, even though it is easily proven false. Supply-side economics (aka Trickle Down Economics, or as Republican President George HW Bush called it, "Voodoo Economics") is the theory that the wealthy are job creators (despite almost no evidence) and therefore must be taxed at lower percentage rates than everyone else. The "theory" (again, which is demonstrably false) is that by keeping tax rates low on the wealthy, these successful Americans will invest in companies and start businesses and therefore create jobs.
The theory is a complete fantasy, a fiction, and the near constant repetition of the theory is called "lying" and endless policy proposals to implement this nonsense by politicians on the right is a ruse to implement their actual main objective of creating a plutocratic America, ruled by the rich and corporations where ordinary people are just grateful to have jobs. Still, the trickle down theory exists, the practice of trying to further implement it persists, and for 30 years we have tried this grand experiment in supply-side economics, taxing the wealthy at historically low rates. So what happened to job growth during this time? It remains at an almost all time low. How many more decades of lost middle-class workers and middle-class college grads looking for work will be stranded while we continue this insanity? And how much more wealthy will the top 5% become at the expense of everyone else before we stop this nonsense?
Partisans on the right argue that the reason Supply Side theory has not worked, and it clearly has not, is that we are simply not fully committed to it. That is horse-hockey. Example: The Bush Tax cuts of 2001 and 2003 lowered tax rates on the wealthy - during that time job growth has been non-existent. If this supply-side fiction worked, "we would be drowning in jobs", as Nick Hanauer says in his recent TED Talk...
It's time to stop this insanity. Mitt Romney and conservative representatives like Paul Ryan will quadruple down on this inane strategy if Romney is elected.
If you needed only one reason to vote for Obama and Democrats, this would be at or near the top of the list of why Democrats must win - the middle-class is at a tipping point and this suicidal theory will bankrupt our country, destroy the middle-class which has made us the world's most successful economy, and will relegate the US to 3rd world status within a few generations. The GOP simply must be stopped.
Corporations, capitalism, is not what should be blamed here. Blame the politicians.
ReplyDeleteI've re-read my post just now, and sorry but I cannot imagine how you could draw the conclusion the article blames corporations or capitalism. Perhaps you meant Democrats should not do that, but you will recall the other GOP candidates attacked Romney's record at Bain as well. I have not. Although Private Equity does beg the question, "What are capital markets for?" And that is probably a future post of mine.
ReplyDeleteI was referring primarily to the image in the post. Though I would say that yes, neither Democrats or Republicans should blame business for the nation's troubles. Capitalism is a system that is fundamental to the United States, putting unfair restrictions on the free market (just as taking some restrictions away) would be detrimental and I believe both parties are at stake here. I happen to agree with the fact that giving these corporations and businesses a right to give money to campaigns is absolutely contrary to American philosophy.
ReplyDeleteI like your point on how President Reagan's trickle down theory has lead to such a significant deficit and split in the classes. Reaganomics are very interesting, not effective in my mind, and definitely something this country needs to fight against.
Keep up the blog posting! I enjoy reading.