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View Diary: (VIDEO) Romney, Dick Cheney & GWBush talk effects of Tax Cuts (4 comments)

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  •  Well, it wasn't the reduced tax rates that caused (1+ / 0-)
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    maybeeso in michigan

    the economic collapse.  The promise to reduce rates was designed to persuade rich people who rely on unearned income to open their purses and support Republican politicians. That's because the system has been rigged to let people with a stash of money to lend to our various public bodies and collect a dividend, instead of paying their fair share in the form of taxes and fees for services. It looks like a two-fer, but it's actually a three-fer because the original accumulation of money is the result of having gotten "free goods" (natural resources) and taken them to market for a profit (see Koch Brothers coal and oil).
    The unearened income class has gotten used to a closed loop system and, while they welcome any increase to the money circulating in it, they've become resistant to letting it escape. So, while the Bush/Cheney may have wanted to prompt real investment in goods and services, the unearned income mavens prefer to go with bonds or to play the market and speculate with the lagniappe. They don't need the money, so it's easy to lose.  That's how come fully 50% of all Americans' asset value disappeared in the great recessional collapse.
    Why was it not a depression?  Because the federal government came up with an infusion of cash to keep the currency flowing through the economy. Routine distributions of cash to the elderly, those who care for the infirm and routine revenue sharing programs actually worked to stabilize the economy.
    But, the unearned income, bond clipping mavens are in distress. The stream that had been reduced to a trickle in 2000 still hasn't recovered to where it was in 1991 and it won't recover any time soon because the Fed has figured out that fiddling the interest rates may crash the economy, but it won't get it moving. Removing cash from the economy will slow it down, regardless of who does it.  So, as long as the bond clippers keep hoarding, the federal government will have to provide a steady infusion.

    I think it's interesting that the recent announcement that there would be no increase in Social Security pensions this year turns out to have been an unofficial prediction.  The reality, still to be officially announced, is that it will likely be smaller than in 2012 because there is no stimulus component and the consumer price index has not increased significantly.  So, people are looking at an increase of 1.5% or so.
    One is tempted to speculate that the 0% story was designed to influence the recipient population, consistent with the story that Obama is tanking the economy.

    The main problem with deception is that people so hate to be deceived that, when they discover it happened to them, their inclination is to deny that it even happened.  "Oh, no, I wasn't deceived; I was just mistaken," is the liar's out.
    People would rather be wrong than dissed and that works to the liar's advantage.  After all, the essence of the lie is disrespect for the person lied to.

    We organize governments to provide benefits and prevent abuse.

    by hannah on Tue Oct 16, 2012 at 06:31:25 AM PDT

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