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View Diary: Prepare for the "Cut Social Security" onslaught (206 comments)

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  •  The Bush tax cut was (6+ / 0-)

    passed with the sunset provision since it was intended to be only a temporary tax reduction.  Why not honor that agreement?  What has changed so significantly?

    •  A Decade of Stagnant Middle Class* Income (0+ / 0-)

      during which household debt increased by massive amounts to maintain the purchasing power for necessities and to live up to the intensely marketed expectation of increased standards of living.

      Following which, the financial panic of 2007-8 followed by the Great Recession, massive layoffs, unprecedented forclosures, and little hope of near-term relief.

      Those already slipping underneath the water's surface have developed an allergic reaction to losing any more of their disposable income.

      What has also changed is that those not slipping below the waves, but rather motoring on top of them in their yachts, don't need them (which is not really a change) and won't use them to create jobs where consumer demand does not justify their investment.  

      Even if it were true in good times that tax cuts to the rich will "create jobs", in bad times, when consumers have been forced to go cold turkey on their debt-based stimulants and have been deprived of their purchasing power, tax cuts to the wealthy will work no better than fighting a fire by pumping water back into the lake instead of onto the burning house.  

      *Here, I adopt the CW definition of Middle Class to mean the bottom 98%.

      In uncharted territories, don't rely too much on your charts. Stay strong and row away from the rocks.

      by Into The Woods on Wed Nov 10, 2010 at 04:15:43 PM PST

      [ Parent ]

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