TAX CUTS FOR THE RICH DO NOT STIMULATE ECONOMIC GROWTH!
Disinvestment in productivity is linked to world wide overcapacity in production and the consequent disparity between the rate of profit in production vs. the rate of profit from the FIRE (Finance, Insurance, and Real Estate) sector. Government policy — zero interest rates for large capital borrowers, massive tax reductions for corporations and the wealthy — makes speculative asset inflation an attractive alternative to productive investments.
Disinvestment in manufacturing is linked to the decision of industrial manufacturing executives to invest a growing amount of capital in foreign manufacturing (Foreign direct investment ) and automation systems that would allow for the outsourcing of factories to other countries, while reducing the skills needed by manufacturing workers. So, instead of investing in domestic production for foreign markets, major industrial firms began producing goods abroad for import back into the United States market.
The money for these things comes from the rich clawing back our wages, and our assets/property (housing) with rising indebtedness to the banks (H/H private-sector debt), and massive tax giveaways to them (Trickle Down).
Welcome to the Neoliberal Rentier economy, made possible by state intervention (what James K. Galbraith calls the “predator state”) in the interests of the Patrimonial Rentier class rather than “market competition” and the laboring classes.
–63% of families today could not withstand a $500 emergency.
We have pensions collapsing, communities that have been wiped out, and the Republican plan to fix all of this is to go to the Chinese government, borrow $2.3 trillion, and bring it back to the US to give to the wealthiest people in the country?
SHARE if you agree: That won’t fix a thing for hardworking families who need a boost. Republicans need to ditch this disastrous plan.
And this is coming from Bruce Bartlett, a former policy adviser to Ronald Reagan, who by his own account, helped spur the trickle down myth in the first place.
We’ve moved into cult-like territory with these modern day Republicans. Total disregard for reason and blind loyalty to conservative dogma. Bald faced in their agenda to appease the 1%.
The best growth in recent memory came after President Bill Clinton raised taxes in the ’90s.
There will never be a big enough tax cut for the wealthy to spur economic growth. Just look at Kansas. How did their tax cuts for the wealthy spur their economic growth? “Kansas’ gross domestic product (GDP) grew 4.8 percent from the end of 2012 through the first quarter of 2016, while national GDP rose 11.9 percent.” https://goo.gl/faps1o