Wednesday, March 21, 2012

Bizarro World Revisited

Apparently many of our elected representatives are living in some bizarro world that is completely removed from either reality or history. The idea that lower tax rates will result in either increased jobs or reduced debt is, again, part of the present negotiations to resolve the country’s economic problems. We have ten years experience with lowered tax rates. With this experience, where are the jobs? Where is the increased revenue? To what extent have these lowered tax rates resolved the country’s economic difficulties. The economic witch doctors on the right may believe that their chants and incantations will cure the country’s fiscal illness, but history should have proven to anyone willing to look at the results of their incantations that their rhetoric has not worked in the past and there is absolutely no evidence there is a chance it will work in the future. The financial cancer that has attacked this country will not be cured by failed theories. Lowering taxes for the wealthy and corporations will not raise additional revenue. Closing tax loopholes, treating all forms of income as earned income such as wages, and reducing defense expenditures will, on the other hand, do far more to improve the economy. As far as jobs are concerned, maintaining the infrastructure, is, by far, the best source of jobs until such time as demand for products and services from the private sector force businesses to hire to meet the increased demand. It is far less expensive to maintain rather than waiting until forced to replace and at a time when costs of borrowing are at a historical low, financing infrastructure repair is far less expensive. The one thing that has been proven not to work is the failed supply–side approach to the country’s economy. It is unfortunate that Paul Ryan and the Republicans in the House of Representatives are unable to see the failed results of this economic trial and continue to push for even lower tax rates.

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