Is the Republican Victory Plan Another Great Depression?

[Omaha Steve]

http://www.midatlanticlabor.com/appiesnet/wordpress/?p=1401

Is the Republican Victory Plan Another Great Depression?

07.31.10

Is the Republican Victory Plan Another Great Depression?

It seems like the Republicans in Congress have decided that sabotaging economic recovery and employment growth is their best tactic for electoral gains in the November elections. Indications of this plan have been around since the Democratic victories in 2008. It seems that all doubt about facilitating the economic downturn as a path to political power for Republicans have been removed by recent legislative votes.

Economic recessions and depressions almost always result from insufficient “effective” consumer demand for goods and services produced domestically. In economic terms, wanting something is not “effective demand” . For a want to become a demand for goods or services, it must accompany the desire to buy with the ability to actually purchase. Money is required.

Jobs are not created by just having large pools of investment money available. There must be the opportunity to invest in a business that will have customers who can buy the goods and services before the investment money flows into job creation activities. The Republican Right economic theory that economic prosperity and employment ” trickle-down from the wealthy” has proven to be unsound by historical experience.

Tax cuts for the wealthy create huge investment money pools but not jobs. Our nation has plenty of money setting idle in corporate and personal coffers. Corporations have almost a trillion dollars setting essentially idle in corporate accounts at this time.

Republicans are seeking to extend the tax cuts for the wealthy by falsely stating that increases in taxes for the upper 2% of income earners would hurt demand and prolong the economic downturn. Experience and history prove otherwise.

Tax cuts at the highest marginal incomes brackets do concentrate wealth and political power in the hands of the economic elite. The resulting political power by the economic elite pushes government policy in directions that dramatically cut the percentage of the nation’s wealth and income held by the vast majority of Americans. This reduces the ability of most Americans to buy goods and services. As a result, the economy unwinds because customers do not have enough disposable income to keep the flow of goods and services at a healthy economic level. The former middle class disposable income now controlled by the economic elite funds speculation and unsound “bubbles” in the economy instead of a healthy economy because sound businesses now lack paying customers.

FULL story at link.

[SunsetDreams]

1. K&R

excellent article, thank you for posting

[Uben]

2. But, we need rich people, here's why.......

Number one...
























Hmmmm? Guess not!

[eridani]

8. Do they taste good if roasted? n/t

[ixion]

3. It goes deeper than that... from what I can see, the neocon agenda is to

create a neo-feudal era.

[chillspike]

4. I would tend to think it's a world war

[Initech]

9. It seems we're headed toward WWIII doesn't it?

[rrneck]

5. Phase II

Pay people a dollar a day here to build junk they sell to the middle class in China.

[amborin]

6. why did Obama capitulate to them re: the original stimulus? gave them their useless tax cuts

which took up a big chunk of the money......

[patrice]

7. yes. Will also extend the Power of ChruchCo, further gauranteeing their hold on Americanminds&hearts

[donheld]

10. Yes it's exactly what they want. IMHO

it's the corporate owners of this countries biggest dream.

To break the american worker's spirit. It will kill unions and any decent paying jobs, along with any of the labor standards we have in this country.
It is their hope that it will let them abolish any kind of evironmental regulation so they can polute at will. It's part of the shock doctrine if i'm not
mistaken. I think they'd be glad to bring the jobs to the USA as long as they didn't have to pay squat, could treat employees much worse than they
do now, and can do to the environment whatever they want.