At a time when the government is doing all it can to prove the basic theory behind the New Deal economic policy that pumping money into the lower and middle classes helps fuel economic growth John McCain is loving telling the ignorant masses that he will massivly slash that prop to our economy. I think its so funny. So, government spending will be slashed--it won't be, McCain is lying--so that we can all enjoy lower taxes! Reform!
Ever taken a basic economics course much less an advanced one? Sorry, but economists will tell you that history has proven that the basic theory behind the New Deal is dead wrong -which is why so many INFORMED Americans oppose such policies in the first place.
Economic growth isn't fueled by the lower and middle classes. Economic growth is the increase in value of the goods and services produced -usually by increasing the sheer number of goods and services being produced. How you figure the lower and middle income classes are what fuels and determines that is beyond me. People willing to work without other people able to create jobs and pay them for their work fuel nothing but despair.
Those are the classes with the LEAST amount of disposable income in the first place and therefore the least likely to create new jobs so more goods and services can be produced while giving more people the opportunity to also increase their income and perhaps someday able to have the funds to also create jobs and pay the salaries of others -giving someone else a rung up on the ladder. Giving them a government handout gives them a temporary infusion of cash that week -but what about next week and the week after?
You increase disposable income on a real level when taxes are lowered. But increasing taxes on those with more disposable income at the same time is counterproductive and removes the economic stimulus entirely. You increase disposable income when those who don't have a job, get one -or when those who have one, get a higher paying job. That's how it works. And since the lower classes don't create those jobs, wouldn't it make sense for economic policies to focus on encouraging job growth and increased worker productivity (which results in a higher wage) by those small and large businesses which actually create those jobs and pay those salaries? And in fact, policies that do are more successful and produce better results than ones which turn their focus toward income redistribution. But no doubt advocates just FEEL better about income redistribution anyway -although accomplishing far less real good and all too often increasing the pain for the very people they claim to want to help the most.
A real economic stimulus package isn't a ploy for income redistribution but specifically targeting those areas known to best result in real economic stimulation with real job growth. And it isn't through income redistribution. Income redistribution is an economic damper, it results in loss of jobs and higher unemployment and often an economic contraction. The opposite of economic growth - and those harmed the most by an increase in unemployment are those at the bottom. What Obama is pushing in the guise of "economic stimulus" is nothing but Carter's identical failed economic policies of income redistribution while claiming it will result in an economy as it was under Clinton. WTF? Oh sure, Carter policies won't result in another Carter economy but result in a Clinton one which was due to Reagan policies? ROFL!
Obama is running a con game. Last time Democrats dragged that crap out we got nothing but near double digit unemployment, double digit inflation and double digit interest rates. And those who suffered the very most for it -were the lower economic classes, the same people Carter claimed he was trying to help the most. I'll pass on that kind of "help", thank you.
If you don't understand what drives an economy in the first place and where economic growth actually comes from - then throwing money where it is least likely to produce real results while taking it in one form or another from those that create jobs and are most likely to create new jobs - only means you wasted that precious money along with the potential good it really could have done. Throwing it where it is least likely to result in any economic growth is far more likely to just get increased inflation and unemployment -but not economic growth. He can go peddle that crap somewhere else -been there, done that and it really, really sucked.
