For over 30 years, we have been consumed by the theory that giving to the ultra rich in the form of tax-breaks or loopholes, will allow them to give back to us in return. And for over 30 years, while this theory has been in full force, the economy for the most part, has been on a decline, the poor got poorer, the middle class just made enough to scrape by and the rich continued getting richer.
Explaining Reaganomics
The theory is called “Reaganomics,” and is based on what I call economic slavery - making sure the rich stay rich, while everyone else work double and triple shifts just to survive.
Like the name implies, Reaganomics was introduced in the Reagan administration back in the 1980’s and had four major principles. Among these principles, two stands out;
Deregulation: According to William A. Niskanen, one of the authors of Reaganomics, “Reagan eased or eliminated price controls on oil and natural gas, cable TV, long-distance telephone service, interstate bus service, and ocean shipping. Banks were allowed to invest in a somewhat broader set of assets, and the scope of the antitrust laws was reduced.”
Tax Cuts for the Wealthy: Mr. Niskanen also wrote about this, saying “The changes to the federal tax code were much more substantial. The top marginal tax rate on individual income was reduced from 70 percent to 28 percent. The corporate income tax rate was reduced from 48 percent to 34 percent.” (continue reading...)
We all know the entire game plan of the GOP. It is a plan that has been in effect for over 30 years, and is responsible for the failed economic conditions we now face as a nation. Their plan serves their corporate masters but does absolutely nothing for the middle class. And if the GOP wins control of Congress in November, it is this game plan they will try to re-implement. The Republican’s game plan is the one and only, tax-cuts for the wealthy.
Sen. Jon Kyl (R-AZ)
Yes, tax-breaks for the wealthy, also known as trickle-down economics or supply-side economics or Reaganomics, is based on the belief that providing the extremely wealthy with the lowest tax breaks and removing regulations on goods and services, will cause these folks to save more of their money, thus, investing more and allowing these millionaires and billionaires to…, well trickle down their wealth to us small folks in the middle class.
One of the main problems with this concept is the fact that the rich are rich because their main objective is making money. The trickle-down economics theory goes against the very nature of making money.
Providing tax-breaks and tax loopholes to the wealthy is just providing them with more money to put in their off-shore bank accounts. The hope then, is that somehow, somewhere along the line, these folks will decide to invest in products and or services that benefits the middle class.
Over the last eight years, the Bush administration and a Republican controlled congress for the first six years of Bush’s term tried trickle-down economics. President George Bush provided multiple trillion dollar tax breaks to the wealthy, but instead of the money trickling down to main street, the rich held on to their new found dollars and inflated their bank accounts and private investments. And mainly because of these policies, Bush turned a surplus left by the Clinton administration into a multi trillion dollar deficit at the end of his time in office.
So now we're heading into another mid-term election and Republicans have been playing politics as usual with the American people. They have decided that the best way to get back in power is to block or try to block each and every policy endeavor that President Obama and the Democrats try to implement. Their thinking is simple - if they could create the impression among the American people that Democrats are not getting anything done, or that the country’s economy is worst since Democrats gained power, then they, these Republicans, would be voted back in power when the elections come around.
The question now begs to be asked. What would be different if these Republicans regain power in the midterm elections? What will they do different? What policies would they try to implement to correct the economy, to correct unemployment and put us back on a road to prosperity? The answer came from Senator Jon Kyl, Republican of Arizona on Fox News Sunday show.
Host, Chris Wallace, discussing the Bush’s Tax-Cuts for the wealthy asked the Senator the following question;
“The fact is, those (tax-cuts) would cost $678 Billion dollars over 10 years. At a time when Republicans are saying they can’t extend unemployment benefits unless you pay for them, tell me, how are you gonna pay that $678 Billion dollars to keep those tax-cuts for the wealthy?”
This question was too hard for Mr. Kyl to answer. Mr. Wallace had to ask three different times before Jon Kyl give a rambling answer that, when summarized, said - you cannot raise money to pay for tax-cuts for the wealthy; they just deserve these tax cuts. However, if you need to extend unemployment benefits for Americans who are out of work, then that must be paid for.
For the first six months of 2010, the economic conditions have slowly begun to improve, due to many of policies the Democrats have implemented. We are not out of the woods yet, but we’re definitely out of the ditch and driving in the right direction.
Republicans are fighting to get the keys back! Their only game plan is Tax-breaks for the wealthy, also known as trickle-down economics or supply-side economics or Reaganomics. If it didn’t work in the past, why do these Republicans think it will work now?
Ditches weren’t made for driving. We’ll stay on the road, thank you…!
