Okay, what happens when a person in the upper middle class, or higher, do when they get a raise in their paycheck due to a raise or decrease in taxes?
A little of it gets spent, a dinner out, something for the family, a better vacation.
But most of the people at in that income class already have 'enough' so they put it in the bank or make investments in things like stocks or bonds.
I wonder how many people realize that except for during an IPO that the money paid for a stock doesn't go to that company.
That the stock comes from a brokerage firm or other investors that are selling their stock.
It doesn't go to anyone that is going to create a job.
Unless its another nanny for Muffy and Elwood.
The argument that the Republicans make that giving these people more money via lower taxes will create jobs is pretty much bullshit.
If you give a person just making it from pay check to pay check a few bucks, he is not very likely going to save it or buy stock.
They are going to spend it.
Fill the refrigerator, new shoes for the kids, maybe take the family out to pizza.
The difference is that it gets spent.
And that creates jobs.
Local jobs.
The same can be said for the government.
The people that argue that the gov. Spends too much money are missing their own point.
The gov. spends.
All of the money that it received from taxes, fees and is borrowed gets spent.
When gov. spending is reduced it decreases the amount of money going into the economy that puts people to work and generates tax revenue.
In your personal economy think about what happens if you find yourself with your spending being limited by your income.
You can decrease spending. But that's not fun.
In the case of the gov. decreasing spending leads to lost jobs and decreased revenue.
It's a downward spiral.
The other path is to increase revenue.
You can work a few more hours, a weekend gig, and other options.
Not fun, but an alternative.
The gov. can do the same thing by raising taxes or even just close loopholes.
More revenue, more spending and more revenue.
Another spiral but it's upward not downward.
With a little judicious budgeting eventually the extra work, or taxes, can be rolled back.
Just my thoughts.
Friday, May 25, 2012
Friday, May 18, 2012
Trickle Down Economics Or Trickle Down Your Pants Leg
When someone questions why I am a liberal I often respond that I'm not rich enough or stupid enough to be a conservative.
Liberal's laugh, conservatives snear.
In the 80's Reagan's chief economic advisor, David Stockman, developed the trickle down theory. Simply it suggested that lowering taxes on wealthy individuals and companies would make them wealthier and more profitable and that benefit would trickle down to to the mid and lower income folks in America.
To support that Reagan lowered taxes several times. Then raised them several times as well.
It didn't work.
Think of it at home. You get into a financial bind so you go to your boss and tell him he can keep a bigger chunk of your paycheck. Ya, that will get you out of debt.
Eventually Stockman left saying that it was an error, that it didn't work.
The money did not trickle down, it just got deposited in the bank and stayed there.
The people that did benefit, the wealthy thought it was a big success. They had never been wealthier, and corporate profits were awesome.
Armed with their "success" they began selling it to the middle class. Saying that any tax increases would hurt the economy, so we have to keep those taxes lower, especially for the wealthy. The cure for the economy is to cut services that the poor and average citizen need.
A major portion of the working class has swallowed that pill and keeps voting for the candidates that espouse it, still.
In the mean time our governments are going broke, schools are firing teachers, roads are going to hell, bridges are falling.
And people are still voting for people that want to keep taxes lower.
Hence my answer, I am not rich enough or stupid enough to vote Republican
Liberal's laugh, conservatives snear.
In the 80's Reagan's chief economic advisor, David Stockman, developed the trickle down theory. Simply it suggested that lowering taxes on wealthy individuals and companies would make them wealthier and more profitable and that benefit would trickle down to to the mid and lower income folks in America.
To support that Reagan lowered taxes several times. Then raised them several times as well.
It didn't work.
Think of it at home. You get into a financial bind so you go to your boss and tell him he can keep a bigger chunk of your paycheck. Ya, that will get you out of debt.
Eventually Stockman left saying that it was an error, that it didn't work.
The money did not trickle down, it just got deposited in the bank and stayed there.
The people that did benefit, the wealthy thought it was a big success. They had never been wealthier, and corporate profits were awesome.
Armed with their "success" they began selling it to the middle class. Saying that any tax increases would hurt the economy, so we have to keep those taxes lower, especially for the wealthy. The cure for the economy is to cut services that the poor and average citizen need.
A major portion of the working class has swallowed that pill and keeps voting for the candidates that espouse it, still.
In the mean time our governments are going broke, schools are firing teachers, roads are going to hell, bridges are falling.
And people are still voting for people that want to keep taxes lower.
Hence my answer, I am not rich enough or stupid enough to vote Republican
Monday, May 14, 2012
Mitt the Twit
I have told many people over the years that I have an inherent dislike for rich people.
When I was a kid being raised by a single mother of two boys there wasn't a lot of money to be had.
My Mom did the best she could but the clothes were not the newest and there were school things I didn't get to do.
To make it worse I went to a school with a lot of kids that came from old money families.
You know, business owners, doctors, dentists, lawyers and such.
Not as rich as the Mitt Romney family, but enough that they had that same superior attitude.
When I heard Romney get asked about the high school bullying and he answered with that all too familiar smirk and a chuckle it sent shivers through me.
He is the same rich fuck I had to deal with when I was a kid.
He looks at anyone that isn't in his same wealth class as inferior.
He can't see that without the money, education and connections that his father had provided him, that would be no more powerful than the people that he used to move around like just so many pawns to be used in his game of power.
He doesn't respect them for anything more than he can get out of them.
Romney is a clown.
He will whore himself to any person or cause that advances him and his greed.
Mitt can not be trusted.
By the left or right.
He will sell out America just like he did the companies that Bain Capital bought, chopped up then disposed of.
The corporate mindset that says buy American while shipping jobs to Asia will love him.
No principals, no respect for America.
Their only value is money.
If he is elected, may God save America.
When I was a kid being raised by a single mother of two boys there wasn't a lot of money to be had.
My Mom did the best she could but the clothes were not the newest and there were school things I didn't get to do.
To make it worse I went to a school with a lot of kids that came from old money families.
You know, business owners, doctors, dentists, lawyers and such.
Not as rich as the Mitt Romney family, but enough that they had that same superior attitude.
When I heard Romney get asked about the high school bullying and he answered with that all too familiar smirk and a chuckle it sent shivers through me.
He is the same rich fuck I had to deal with when I was a kid.
He looks at anyone that isn't in his same wealth class as inferior.
He can't see that without the money, education and connections that his father had provided him, that would be no more powerful than the people that he used to move around like just so many pawns to be used in his game of power.
He doesn't respect them for anything more than he can get out of them.
Romney is a clown.
He will whore himself to any person or cause that advances him and his greed.
Mitt can not be trusted.
By the left or right.
He will sell out America just like he did the companies that Bain Capital bought, chopped up then disposed of.
The corporate mindset that says buy American while shipping jobs to Asia will love him.
No principals, no respect for America.
Their only value is money.
If he is elected, may God save America.
Wednesday, May 2, 2012
Republicans More Disappointing Than Usual
It's been a while since the Republicans had a candidate that was even remotely charismatic, Ronald Reagan - the great communicator, but the most interesting aspect of Mitt Romney appears to be his ability to stack bullshit so high.
On 1 May, after criticizing Obama for going to Afghanistan and politicizing the 1 year anniversary of OBL's assassination, Mitt and Rudy Giuliani were hand delivering pizza's to a NYFD house that had lost 11 firefighters on 9/11.
No politicizing there.
What a horse's ass.
The best thing to come out of that was the revival of the Biden comment about Giuliani, Every one of his sentences has a noun, a verb and a 9/11.
I guess the Republicans didn't feel that GW standing on a pile of rubble, next to a NYFD firefighter, talking through a bull horn had no political intention. Maybe that's why they still use that picture from time to time.
Too bad Bush drop the ball and turned the world's good feelings toward the US into hatred. Quite a skill.
And don't forget GW landing on an aircraft carrier and declaring Mission Accomplished! How did that work out my Republican friends?
I miss Herman, Michelle, Newt, Rick and the rest of the rebubliclowns that got in the car last year. There's only one clown left in the car, and he just isn't funny at all.
On 1 May, after criticizing Obama for going to Afghanistan and politicizing the 1 year anniversary of OBL's assassination, Mitt and Rudy Giuliani were hand delivering pizza's to a NYFD house that had lost 11 firefighters on 9/11.
No politicizing there.
What a horse's ass.
The best thing to come out of that was the revival of the Biden comment about Giuliani, Every one of his sentences has a noun, a verb and a 9/11.
I guess the Republicans didn't feel that GW standing on a pile of rubble, next to a NYFD firefighter, talking through a bull horn had no political intention. Maybe that's why they still use that picture from time to time.
Too bad Bush drop the ball and turned the world's good feelings toward the US into hatred. Quite a skill.
And don't forget GW landing on an aircraft carrier and declaring Mission Accomplished! How did that work out my Republican friends?
I miss Herman, Michelle, Newt, Rick and the rest of the rebubliclowns that got in the car last year. There's only one clown left in the car, and he just isn't funny at all.
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