Democrats & Liberals Archives

You can't cut your way to prosperity

“You can’t cut your way to prosperity,” Obama said, and many others have made the same observation. Here are two similar takes.

In his 'Connect the Dots' video, former Labor Secretary Robert Reich makes the following assessment:

  • Despite doubling of the size of the US economy since 1980, real wages remain flat.
  • But not for everyone– The 1% of wealthiest Americans took home 10% of the nation’s income in 1980. Today they take home 20% and control a staggering 40% of the nation’s wealth.
  • All that money buys political clout, resulting in lower taxes for the rich. Prior to 1980, the wealthiest Americans were taxed at a rate of 70%. Today they pay 35%, and capital gains– which usually make up a significant portion of their accumulated wealth– are taxed at just 15%.
  • This revenue dearth, and the government’s failure to scale back spending accordingly, have created massive budget deficits. As a result, the things ordinary Americans need to thrive are under constant attack. Schools, health care and infrastructure have all declined.
  • Meanwhile, the middle class is divided.
  • For the shrinking middle class, there’s an anemic recovery, if it can be called a recovery at all. Tighter credit means less purchasing power for the middle class to fuel said recovery. This means continued high unemployment, as businesses are reluctant to hire during such trying times. This is a precarious situation, for only a strong middle class can restore a strong American economy.

Here is Reich's two minute video and the full version of the above summary:

Or as Bill Maher put it:

Cut corporate welfare.

Slash the defense budget.

Tax the rich.

Support the strong unions that created a middle class in the first place.

Build infrastructure.

And take the profit out of health care.

A common theme is the redistribution of wealth in order to create even more wealth. With a philosophy of tax cuts and lowering revenues, we see exactly what you would expect: the rich get richer. At the same time, we fail to develop the middle and lower class through investments in education, health care, and infrastructure. It is a model for creating a country much like you see in Central or South America, with a small number of fabulously wealthy people living in gated communities, a practically non-existent middle class, and a large number of poor people. Compare this with the contrasting European 'socialist' model.

And so, we have to ask the question: would you rather be a wealthy person living in a wealthy country, or one of a few fabulously rich people living in a poor country?

The solution to our debt, deficit, and structural imbalances could not be more obvious. You cannot cut your way to prosperity. It's time for change we can believe in- past time.

Posted by phx8 at June 27, 2011 1:44 PM
Comments
Comment #325062

But phx8 if we cut taxes, the corporations will create jobs in this country. No really. The problem seems to be that the divided middle class believes this despite also believing the stimulus, which was roughly half in tax cuts, was not successful.

Posted by: j2t2 at June 28, 2011 9:39 AM
Comment #325100

The right has painted a picture such that any revenue increases are viewed as more welfare for underachievers. It’s amazing to see folks of modest means fighting tooth and nail for the gated community crowd.

Posted by: Schwamp at June 29, 2011 11:51 AM
Comment #330904

they devoted to keeping you warm jordan sneakersand comfort your feet in winter.The thick soft wool inside will warm you and the EVA outsole offers light weight comfort.If you have any question new jordan sneakersplease get in touch with us and we have the best service for you.Our E-mail address is

Posted by: rty at October 22, 2011 4:24 AM
Comment #360781

Then, when you decide to choose a rolex replica a precise time, precise basic skills that can help you is particularly effective in this regard. Chinese famous brand rolex replica uk price from $ 200 to more than 3,000 yuan. Your financial subsidies may limit your options, but with Italian designer rolex replica Air King watches, almost all of the price range can take you to a fabulous piece, you can be proud to wear. In a similar way, time is crucial rolex replica Day Date watches you are looking for the best value.

Posted by: rolex replica at January 22, 2013 8:19 PM
Comment #363361

wengxy Their Mail Order Service is also convenient for our loyal customers who are easily able to access a Louis Vuitton handbags Canada store location. A classic monogram Louis Vuitton bag with the addition of bold, clean lines- this Louis Vuitton Handbags Outlet is a sure pleaser.JAB (the name adopted in 2006 for the erstwhile Jordan National Bank) was established in Amman in 1955. The Bank provides a universal banking service in Retro Jordans through its sizeable network of 51 branches and brokerage subsidiary. The number of refugees from Syria entering Jordans for sale has reached 500,000, the head of Caritas Jordans for Cheap reports. The agency says that between 1,000 and 2,000 Syrian refugees continue to cross the border into Air Jordan USA every day, seeking a haven from their nation’s civil war. Jordans sale Brand brought back ‘Nike Air’ on the Air Authentic Jordans Retro by introducing the original White/Cement colorway of the III as a special tribute to Retro Jordans for sale iconic free-throw line Dunk from the ’88 Dunk Contest.wengxy Their Mail Order Service is also convenient for our loyal customers who are easily able to access a Louis Vuitton handbags Canada store location. A classic monogram Louis Vuitton bag with the addition of bold, clean lines- this Louis Vuitton Handbags Outlet is a sure pleaser.JAB (the name adopted in 2006 for the erstwhile Jordan National Bank) was established in Amman in 1955. The Bank provides a universal banking service in Retro Jordans through its sizeable network of 51 branches and brokerage subsidiary. The number of refugees from Syria entering Jordans for sale has reached 500,000, the head of Caritas Jordans for Cheap reports. The agency says that between 1,000 and 2,000 Syrian refugees continue to cross the border into Air Jordan USA every day, seeking a haven from their nation’s civil war. Jordans sale Brand brought back ‘Nike Air’ on the Air Authentic Jordans Retro by introducing the original White/Cement colorway of the III as a special tribute to Retro Jordans for sale iconic free-throw line Dunk from the ’88 Dunk Contest.

Posted by: Jordans for Cheap at March 27, 2013 5:37 AM
Comment #363362

linlin The best things about Louis VuittonLouis Vuitton Handbags, in my view, are the sheer volume of handbag designs the company produces every season and the enormous leather goods history on which Vuitton has to draw. For the Louis Vuitton Louis Vuitton Handbags outlet
Monceau BB, new for Spring 2013, both of those uniquely Vuitton elements come in to play; the result is a beautiful, modern take on an old favorite.Wholesale Nike Wholesale nike shoesTiempo Legend IV FG Football Boots Mens Firm Ground Soccer Cleats.wholesale nike Nike salesair force 1 the ghost collects a tiger to drool with envy and even desires to make yield more.Retro JordansRetro Jordans For Sale Dieu qu’un roi qu’un the only bit of consolation I have had to-day.retro jordans Authentic Jordans USAshoes of other topics his week Pandora Box!Athletics activities sunglasses are not the same Cheap Oakley Sunglasses Oakley Sunglasseswith the well known sunglasses. he best way to do this is to get a suit custom tailored to your body,fake oakley sunglassesoklesunglassescheap.If you are trying to be on the frugal side you should at least get measured by a professional tailor,oakley sunglasses akley Holbrook sunglassessale.The particular Retro Jordan Jordan Shoes for saleshoes are previously the particular craze subject.

Posted by: Retro Jordans at March 27, 2013 5:51 AM
Comment #375132

Who will listen to a concert, North Face Jackets Outlet, of Wang Jie, Longchamp Paris, and Yu tears, of nostalgia trip, will be a blessing for, Gucci Outlet, the hot summer and ecstatic, Coach Factory Online, once for friends, Burberry Outlet, and sentimental romance, Ralph Lauren UK, will be for a long-awaited, Coach Outlet, reunion does not drunk return, Polo Outlet Online, how much passion, Michael Kors Outlet, and difficult moments, Canada Goose Outlet, his own covered with mill edges, Coach Purses Outlet Online, lost his best, North Clearance, those who have been ignored, http://www.guccivshoesfactory.com/, by the vulgar, Polo Lauren Ralph, reality of youth ah, MCM リュック, those pure idealism and vision ah, Gucci Shoes Outlet, I do not know, Marc Jacobs Outlet Online, when to actually be, Coach Factory Outlet Online, covered with dust into years, Coach Purses Outlet, of ruthless thin bookmarks, for a long time, Michael Kors Outlet Online, has forgotten to open, Cheap Hollister UK Online, this is a forgotten era, UGG Boots Sale, subject look back, Coach Outlet Online, adrift.

Posted by: coachbag at December 19, 2013 10:36 PM
Post a comment