Listening
Gold Member
- Aug 27, 2011
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The Pub propaganda Machine ignores the big stories sig pp1, all over fantasy distractions sig pp3... thanks for 9/11, the stupidest wars EVER, and the depression. I know, let's cut taxes on the bloated rich, destroy Medicare/aid/SS,
They tell us that lower taxes are meant to spur investment in the economy which leads to job growth.
Problem is, the tax cuts didn't go to the real economy; rather, they went primarily to speculative Wall Street schemes where higher returns accrued to risky garbage like derivatives. (When austerity and lower wages destroys consumption, capital can't "go" into the real economy... so it pressures Wall Street to invent returns out of thin air)
Why didn't the tax cuts get invested in the real economy?
Because there is no demand. The middle class does not have sufficient resources to consume.
Why is there no demand? Answer: Because the global push for lower wages (in order to give investors a higher return on investment) resulted in the shipping of American jobs to Communist China and the 3rd world. Remember: part of Reagan's mission was to release capitalists from having to pay higher union wage and benefits. As a result, America spent the last 30 years shipping jobs to freedom hating labor markets - which gave the wealthy much lower labor costs and higher returns. But the other side of higher returns was lower wages and austerity for consumers; meaning: the capitalists fired their consumers by getting rid of the very resources they needed to buy stuff. So Reagan tried to fix the problem by expanding credit - which lead to 30 years of debt-financed consumption. (Until we broke the bank, and Washington squeezed credit from the last thing of value left - their homes)
Lesson to the wise. It's not just about lower taxes. It's about demand, which has never come from lowering taxes on the few.
As the U.S. economic slump continues, American jobs are increasingly in short supply: the U.S. Labor Department reported on Friday that employers shrunk payrolls by 51,000.
The decline was smaller than expected but still marked the country's seventh straight month of job losses. The national unemployment rate, meanwhile, has jumped from 5.5 percent to 5.7 percent.
But some experts say there is a bright spot on the jobs front: At least a handful of American companies who had relied on workers stationed overseas are now bringing jobs back to the United States. In addition, foreign companies are continuing to expand U.S. operations and hiring more local residents, instead of flying in foreign staff for business.
It's called "insourcing" or "reverse outsourcing." It's the opposite of outsourcing, the oft-criticized practice of American companies' shipping jobs abroad to take advantage of lower labor costs and other incentives.
Some observers are skeptical that insourcing is yet a significant trend, and one pointed out to ABC News that it cannot easily be seen in economic numbers -- but others see anecdotal cases where it appears to be happening.
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Additionally, people are not going to spend money (demand) when they think they moron-in-chief might do even more damage.
You lefties need to stop making simple X/Y correlations when there might, in fact, be 20 varaibles at play (in our complex economy).