With the passing of Senator Arlen Specter, I was reminded of the “magic bullet theory” he devised while working for the Warren Commission investigating the assassination of President Kennedy. I couldn’t help but see a parallel to Mitt Romney’s singular solution to all the country’s problems – more tax cuts for the 1%. He believes that cutting tax rates that benefit the wealthy disproportionately and rolling back regulations that President Obama put on Wall Street after the 2008 crash, will somehow fix everything.
Just forget about Bush’s tax cuts in 2001 & 2003 that added $3 trillion dollars to the national debt and ignore the fact that in the years after those tax cuts, America lost 8 million jobs during the Bush recession, which was handed to our newly elected president. And of course, you should also forget that the Republican leaders, including Paul Ryan, met on President Obama’s inauguration day to plot complete obstruction of the new president for political reasons.
Let’s call Romney’s one point plan what it is, TRICKLE DOWN ECONOMICS. The belief that if we just coddle the rich, they will, in their benevolence, share the wealth with the rest of us by supposedly creating jobs. Just ignore that new Jaguar they are driving, or the 4th home in the Hamptons or the Rolex watch that is weighing down their Bermuda tanned arms. It will trickle. Really!
The concept of supply-side economics has been thoroughly tested and thrown on the trash pile. We only have to look at Mitt Romney’s personal history to see a perfect example of how giving even more to those who don’t need it, won’t do a damn thing for the rest of us. Where is Mitt Romney’s money at? IN THE FUCKING CAYMAN ISLANDS, BERMUDA AND IN SWISS BANK ACCOUNTS. Do you think that money will ever trickle down to you?
Mitt Romney is a walking example of how greed and selfishness only creates more greed and selfishness.
Businesses don’t create jobs unless there is a demand for their products or services. It would be fucking stupid to do it otherwise. It’s why they do market analysis and studies to determine whether there is demand. When there is demand, businesses expand and create jobs. No demand, no reason to expand. Any business person who says they will create jobs if we just give them more disposable income is applying Romney’s “greed is good” principle and probably has an eye on a new car or vacation home.
If the government were to invest in rebuilding our infrastructure – roads, bridges, schools, railroads and other foundations of our country that we all rely on – real people will get those jobs like construction workers, teachers, contractors, firefighters, suppliers of the materials for the projects and many more businesses that support those industries. And when those people receive their paychecks, they will create demand for products and services and give a reason for the 1% to actually invest in new jobs. We don’t have to rely on their benevolence, they will do it because it makes business sense.
The most widely cited studies include those by the Congressional Budget Office, economists Alan Blinder and Mark Zandi, and economists James Feyrer and Bruce Sacerdote. These reports find a range of values for each program. In these studies, the “bang for the buck” value—what economists call the “multiplier,” or how many dollars of economic activity is fueled by one dollar spent—for overall social protection ranges from 0.8 to 2.31. Separately, Blinder and Zandi report a value of 1.61 for unemployment insurance and 1.74 for food stamps.
Research by Urban Institute economist Wayne Vroman estimates that one dollar spent on unemployment insurance fuels between 1.7 and 2.1 dollars of activity in the overall economy. According to these studies, the value for a dollar of spending on infrastructure ranges from 1 to 2.5, while the value for aid to state and local governments ranges from 0.7 to 1.8.
The analyses value middle-class tax cuts, such as the Making Work Pay tax credit that gave tax credits of $400 ($800 for couples), as generating between 0.6 and 1.5 dollars of additional economic activity; the value of extending the Alternative Minimum Tax patch for high-income earners for an additional year ranges from 0.2 to 0.6 dollars of additional activity. And the analyses value the extension of the housing tax credit for first-time homebuyers, providing credits up to $8000, in the Recovery Act from 0.3 to 0.9.
As you can see, putting money in the hands of consumers who will spend that money does a lot more to spur economic activity. Handing money over to the rich and hoping they create jobs with it is just plain stupid.
President Obama has been working hard to pass legislation like the American Jobs Act that would create an estimated 1.9 million jobs, but the obstructionist Republican party isn’t interested in creating jobs while President Obama is in office. They should be shown the door on November 6 for letting petty politics keep America from recovering from the mess that the GOP congress and President Bush created in the first place.
There is an easy solution, vote Democratic across the board and send a message to the Republicans that American workers are more important than politics.
Cross posted at Angry Black Lady Chronicles