I think if I hear one more economically illiterate teabagger refer to the wealthy as job creators I may puke!
Someone should explain to the conservatives that real job creators are people who buy things. You know...like when you have a job, or unemployment compensation if you don't have a job. Taxing the super wealthy won't spoil the purchasing power of the extremely wealthy at all...they won't be spending what we tax them anyway...they'll be saving it. Take care of the unemployed and stimulate the economy. Job growth initiatives and debt will start to make deficits become manageable. At 4% unemployment the deficit will shrink almost, if not, to nothing.
The economy is stalled because there is a lack of demand, not because the wealthy are taxed too much. Let's look at what has occurred historically. In the 1930's to spur demand Keynesian Economics encouraged the government to increase government spending to put people to work. They created jobs doing public works. They built schools, libraries, stadiums, roads...they worked on conservation projects in forests and on building damns. As a result there was work which paid a wage to previously unemployed individuals who in turn spent those wages buying the products that the wealthy ended up making. The wealthy didn't create those jobs, the lower and middle class did when they bought products with those wages. But, the wealthy made more money when the lower classes began buying their products.
As of this writing, private enterprise has created precious few jobs in the ongoing recovery. But, due to our shortsighted economic illiteracy we have cut the government payrolls by 500,000 employees since Barack Obama became President. That's 500,000 fewer customers in the workplace.
The notion that government doesn't create jobs is foolishness. NASA by driving technology to produce products that take mankind into space has produced jobs, and created demand for those products that all of our economy craves now. Creation of the interstate highway system in the 1950's and 1960's created business opportunities all across our great country. It provided the transportation system to move products and convenient real estate locations to build and sell those products.
In 1993 we raised taxes, not just on the wealthy but everyone, and the result was the longest period of expansion in the country's history. Interest rates were driven to the lowest level in my generation's history. The low cost to produce products and the availability of low interest rates on credit to buy them ignited the creation of 23,000,000. Then in 2001 we departed on a different course, we cut taxes, and we cut them massively for the wealthy. The result was not the wealthy creating jobs, quite the opposite. The wealthy hoarded the savings, engaged in speculative stock schemes, and the country exacerbated the problem by indulging in two wars and an excessive give away to the pharmaceutical industry. The result was the deepest economic contraction since the depression of the 1930's.
Now our economically challenged teabagging buddies want to offer the simple solution that all we need to do is control spending. I believe it was Albert Einstein who said "there is a simple solution to everything, and it's usually wrong!"
It's time we stop asking "Joe the Plumber," "Sarah the Half Governor of Alaska," and "Rush the Blowhard Disc Jockey" about economics and start listening to those who have experience in solving international economic problems. The solution starts with creating jobs...any kind of job, private or public, and not encouraging further economic contraction.
Cheers and Jeers: Tuesday
10 minutes ago