I thought I understood where both parties stood on the state of our economy: Both agreed job creation was #1. Both were for lowering taxes, for the middle class at least, in order to spur consumer spending. This would create demand, production, hiring, and eventually MORE tax revenue. We would "grow" our economy out of the mess we're in. Textbook simple.
But now I read that neither party is too keen on extending the Bush tax cuts set to expire January 1st.
"Independent analysts say that the expiration of the tax cut could shave as much as a percentage point off economic output in 2013, and cost the economy as many as one million jobs." NYT, Oct. 1, 2012
Now we're being told that our economy can take the hit. One hundred sixty million Americans would see their taxes go up an average of around $1,000 next year. But....I thought....??
I understand why the whack-o ultra-right / Tea Party wants to stir the pot. Their style since they got to Washington is to follow, ironically, the old Leninist credo, "Worse is Better". The worse things get on their opponents watch, the more "the people" will demand their leadership (and I use the term leadership loosely). But now the Democrats are throwing us under the bus, too?
We, you and I, the middle class, are being played for chumps this election year. Where are our responsible REAL leaders? Ronald Reagan, the darling of the Tea Party, I'm sure would be the first to slap down his party's Young Guns today.
He and his responsible opponents across the aisle would be working night and day* to get our economy back on track, not sabotaging the entire country in order to make themselves look good. Why do I think that? Because that's exactly what they did. They got RESULTS. All we're getting today is SCREWED!
S
*BTW...Did you know the House of Representatives has been in session only three (3) days since August 1st? Or that their salary is $174,000 a year? Are ya feelin' the love?
For the life of me I just can't figure out Mitt Romney's economic logic. I've enjoyed a pretty good formal education and nearly 40 years of business experience, but more than anything I am most proud of my common sense. Mitt is a brilliant man, no doubt, but his plan to create jobs and grow the economy just defies (my) common sense.
He says he wants to cut taxes for the rich, or at least include them in the extension of the soon-to-expire Bush tax cuts, and that they (the rich) will then use this increased wealth to create jobs. But from all I've read, including in the Wall Street Journal (hardly a leftist rag), there is somewhere between one and two TRILLION dollars in capital sitting on the sidelines waiting to be invested long-term. What's missing is consumer demand to buy more of the stuff these new businesses/jobs would produce. If there's no demand, why produce it?
Because of their vast numbers, estimated to be 50% of all Americans, the middle class drives our consumer-based economy. The poor can't buy enough to create jobs because they, by definition, have no money. The rich have plenty of money, but there aren't enough of them to buy in the mass quantities needed to drive industry. That leaves the middle class to "spend, baby, spend".
When the middle class has enough money (and is confident enough to part with some of it), then demand will increase, businesses will produce more goods and services to satisfy the demand, and jobs will be created, in that order. To think you can create jobs and THEN wait for demand to catch up defies common sense. No business is going to pay employees to just sit around and wait.
I'm sick of hearing about how the rich need more money. I'm not saying they shouldn't have more money. What I am saying is what we ALL need right now is for the MIDDLE CLASS to have more money, for it is they, not the rich, who will return us to prosperity. That's just common sense.
S
Have you heard the old saying, "Nero fiddled while Rome burned"? Nero was a Roman Emperor, and many Romans believed he casually fiddled his lyre after he himself started a fire in order to clear land for his palatial complex. It was said all he cared about was himself, and gave no thought to the plight of his subjects.
That's about what's happening right now in Washington. If Congress does nothing, major spending cuts will go into effect in January and the Bush era tax cuts will expire, hiking taxes. It seems that more than 40% of businesses cited this upcoming "fiscal cliff" as a major reason for their spending and hiring restraint. Equipment isn't being manufactured and sold and people desperately in need of work aren't being hired because Congress won't work together to put an end to this stalemate.
In fact, they've "abandoned ship", turning out the lights and going back home while the country goes down the tubes. Of course they'll tell you they are going back home in order to "consult with their constituents", but honestly all they're doing is fund raising. Right now the only jobs they care about are their own.
Most everyone agrees spending needs to be cut, but both parties have drawn lines in the sand and refuse to let their (special interest's) pet projects be cut. By default automatic across-the-board cuts will go into effect in January, and they are draconian. They refuse to get together and negotiate, everyone giving up a little for the benefit of the whole. The same with the Bush-era tax cuts....Republicans insisting the rich keep their tax cuts, too, while the Democrats only want to extend cuts to the middle class. They bicker....we suffer.
They're waiting until after the November elections to see how the power paradigm changes. If there is a major shift, the big winner will dig in even more and beat the other to death to get what they want. They're playing a game where one side wins all the marbles and the other is crushed. Not exactly a good way to bring the country together is it?
Leaders would sit down together and work something out for the good of the country. Ideologues see thing in black and white..."we win, they lose". We don't have leaders. Our politicians are a despicable bunch.
S
