>>Oh for the good old days of the GWB economic expansion, Unemployment in the low to middle 4% range, <<
only fools still believe that one
real good news...
layoffs have hit a managable level
the corner has turned ________________________
I seriously doubt it; watch unemployment hit 10% by the end of the month. Plus, bankrupties are up 41% over this time last year. This crisis will get much worse before it improves.
Bush/Paulson/Bernanke blew $900B bailing out Wall Street, accomplishing nothing. In contrast, Obama's stimulus is actually creating and preserving jobs...just not fast enough. According to an analysis by the Economic Policy Institute, the stimulus is saving or creating between 200,000 and 250,000 jobs a month. Without it, job losses in September would have been nearly twice what they actually were.
People who have lost their jobs or are worried about losing their jobs are going to spend less money. As 70% of our economy is driven by consumer spending, this story writes itself: without consumer revenue, companies won't hire (and indeed, will cut payroll and employees) and so on. The only way out is for Obama to spend MORE on infrastructure, thereby creating jobs. He needs to do it yesterday, and he needs to ignore these crapaholics whine about deficit spending.
One thing Obama keeps saying that keeps pissing me off is his "we're looking forward, not backwards." Right, because nobody ever learned a fuggin thing from history. Unless yer psychic, you use history as a guidebook when planning for the future.
Cuts in tax rates stimulate economic growth because the lower rates allow producers to keep a higher percentage of what they produce and earn. For example, at a 50% tax rate the producer only keeps 50% of what he earns. If the rate is reduced to 25%, the producer keeps 75% of what he earns. This means greatly increased incentives to save, invest, start businesses, expand businesses, create jobs, engage in entrepreneurship, and work.
Kennedy's Tax Cuts
While President Obama and his hypnotized followers do not understand this, President John F. Kennedy did. Kennedy proposed legislation to reduce income tax rates across the board by 30%. Kennedy explained:
"It is a paradoxical truth that tax rates are too high today, and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the tax rates….[A]n economy constrained by high tax rates will never produce enough revenue to balance the budget, just as it will never create enough jobs or enough profits."
Our true choice is not between tax reduction, on the one hand, and the avoidance of large federal deficits on the other….It is between two kinds of deficits -- a chronic deficit of inertia, as the unwanted result of result of inadequate revenues and a restricted economy -- or a temporary deficit of transition, resulting from a tax cut designed to boost the economy, produce revenues, and achieve a future budget surplus.
Reagan's Tax Cuts
In 1981, Reagan cut the top income tax rate of 70% to 50%, with a 25% across the board reduction in income tax rates for everyone else. Then, in the 1986 tax reform, he cut the top rate to 28%, with only one other rate of 15% for everyone else. Reagan also cut corporate income tax rates. By 1982, just before the tax cuts were fully phased in, the economy took off on a 25 year economic boom, what Art Laffer and Steve Moore called "the greatest period of wealth creation in the history of the planet." Steve Forbes called it "an economic golden age." Forbes added:
Never before have so many people advanced so far economically in so short a period of time as they have during the [25 year boom]. Until the credit crisis, 70 million people a year [worldwide] were joining the middle class. The U.S. kicked off this long boom with the economic reforms of Ronald Reagan, particularly his enormous income tax cuts. We burst from the economic stagnation of the 1970s into a dynamic, innovative, high tech-oriented economy.
Exactly correct. The politicians like to play games like that. They hope you forget the job losses but when the rare plant or small biz opens up, 150 career politicians line up to get their puss on TV holding the big scissors. Same BS for green jobs. Utility jobs pay a nice buck in most cases and the mentality in DC is that everyone should be paid the same; except them of course.
Same goes for wind mills. A certain senator was a mouthpiece for the "green" movement but when it was proposed a bunch would be put off shore of his little vineyard in the Northeast, that plug was pulled quickly by the BANANA syndrom (BUILD ABSOLUTELY NOTHING ANYWHERE NEAR ANYTHING) especially something that might affect his view.