Bush’s plan for fixing the economy is to cut taxes for the rich and cut government spending. Got that? Redistributing the money upward while cutting programs that benefit the middle class and poor (and don’t forget the people who will be laid off because of spending cuts).
Already working people pay a tax not paid by the rich – the “payroll tax” – and that money is currently being redistributed out to the very rich through tax cuts and debt interest payments. Most people don’t understand about this tax – that it is ONLY paid by lower and middle-income people. And, to be repetitive, let me repeat, this is a tax that is paid by poor and middle-class people and redistributed to the rich. That’s what Gore’s “lockbox” was all about – preventing this money from being handed to the rich. When Rush says the rich pay most of the taxes, this tax is not part of the calculation, and never mind that the rich pay more because they have most of the income. (And, of course, the Democrats haven’t been telling the public about this because it might upset the Donor Class.)
Republicans believe in “supply-side” economics – if you concentrate money at the top the rich will build factories, which will hire people and that will create demand for the goods the factories produce. The rich-worshippers say, “have you ever been given a job by a poor person?” We have a CONSUMER economy, but let’s send the money up to the top so it can be put in offshore accounts, instead of distributing it out to the consumers. Right. I saw a comment the other day after a weblog entry – I forget where – that a nine-year-old can figure it out: “Daddy, you have three factories but only enough customers for two, so why would you build a fourth factory?”
We need policies that get more money into the hands of more people who will spend it on goods. That’s called “demand-side” economics. It’s redistributing the money from the top and spreading it out among the people. It is the opposite of concentrating the wealth at the top, and historically THIS is what has worked to help ailing economies. Companies hire when they have customers with money walking in the door.