Investor Confidence Ebbs as Market Keeps Dropping (New York Times)
“The really big risk is that consumers will reawaken to the timeless truth that the best way to save money is to stop spending,” said Richard Hastings, chief economist at Cyber Business Credit, a retail advisory firm in New York. “And I think that will impact aggregate demand in a way that has not been seen since the 1930’s.”
Regular people lost their jobs, took pay cuts or had to work extra hours so the execs can get huge paychecks, free loans and stock options. Regular people lost government services to pay for tax cuts for the rich, and will have to pay off the deficits resulting from tax cuts. (In Wealth and Democracy, Kevin Phillips shows how regular people’s tax burden greatly increased while the rich and corporations pay less and less.) Recently regular people have seen their retirement savings collapse at the same time as Bush wiped out the Social Security surplus.
But they had better go further into debt living way past their means, or the whole economy is going down. It’s all their fault!
What about raising taxes on the rich or corporations, and maybe getting some of the money BACK from them! Remember what happened to the economy after Clinton RAISED taxes on the rich in 1993?