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Title: Economist Blasts GOP’s ‘Seven Biggest Economic Lies’
Source:
Business Insider
URL Source: http://www.rawstory.com/rs/2011/10/ ... s-seven-biggest-economic-lies/
Published: Oct 12, 2011
Author: By Robert Reich
Post Date: 2011-10-12 14:08:48 by Brian S
Keywords: None
Views: 4319
Comments: 11
The President’s Jobs Bill doesn’t have a chance in Congress — and the Occupiers on Wall Street and elsewhere can’t become a national movement for a more equitable society – unless more Americans know the truth about the economy.
Below is a short (2 minute 30 second) effort to rebut the seven biggest whoppers now being told by those who want to take America backwards. The major points:
1. Tax cuts for the rich trickle down to everyone else.
Baloney. Ronald Reagan and George W. Bush both sliced taxes on the rich and what happened? Most Americans’ wages (measured by the real median wage) began flattening under Reagan and has dropped since George W. Bush. Trickle-down economics is a cruel joke.
2. Higher taxes on the rich would hurt the economy and slow job growth.
False. From the end of World War II until 1981, the richest Americans faced a top marginal tax rate of 70 percent or above. Under Dwight Eisenhower it was 91 percent. Even after all deductions and credits, the top taxes on the very rich were far higher than they’ve been since. Yet the economy grew faster during those years than it has since. (Don’t believe small businesses would be hurt by a higher marginal tax; fewer than 2 percent of small business owners are in the highest tax bracket.)
3. Shrinking government generates more jobs.
Wrong again. It means fewer government workers – everyone from teachers, fire fighters, police officers, and social workers at the state and local levels to safety inspectors and military personnel at the federal. And fewer government contractors, who would employ fewer private-sector workers. According to Moody’s economist Mark Zandi (a campaign advisor to John McCain), the $61 billion in spending cuts proposed by the House GOP will cost the economy 700,000 jobs this year and next.
4. Cutting the budget deficit now is more important than boosting the economy.
Untrue. With so many Americans out of work, budget cuts now will shrink the economy. They’ll increase unemployment and reduce tax revenues. That will worsen the ratio of the debt to the total economy. The first priority must be getting jobs and growth back by boosting the economy. Only then, when jobs and growth are returning vigorously, should we turn to cutting the deficit.
5. Medicare and Medicaid are the major drivers of budget deficits.
Wrong. Medicare and Medicaid spending is rising quickly, to be sure. But that’s because the nation’s health-care costs are rising so fast. One of the best ways of slowing these costs is to use Medicare and Medicaid’s bargaining power over drug companies and hospitals to reduce costs, and to move from a fee-for-service system to a fee-for-healthy outcomes system. And since Medicare has far lower administrative costs than private health insurers, we should make Medicare available to everyone.
6. Social Security is a Ponzi scheme.
Don’t believe it. Social Security is solvent for the next 26 years. It could be solvent for the next century if we raised the ceiling on income subject to the Social Security payroll tax. That ceiling is now $106,800.
7. It’s unfair that lower-income Americans don’t pay income tax.
Wrong. There’s nothing unfair about it. Lower-income Americans pay out a larger share of their paychecks in payroll taxes, sales taxes, user fees, and tolls than everyone else.
Demagogues through history have known that big lies, repeated often enough, start being believed — unless they’re rebutted. These seven economic whoppers are just plain wrong. Make sure you know the truth – and spread it on. Subscribe to *TeaParty Economics on Parade*
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Author: By Robert Reich
LMAO.
DUMMY DwarF: ...I'm eating a meatball...
Capitalist Eric: Foreplay before the president's staff?
"Whenver the dwarf sees something negative about a Democrat, he tries to change the topic of the thread to something else. Usually a personal attack, followed by mutterings about correct 'grammar' 'spelling' whatever. Anything he can think of to avoid a discussion about a Democrat screwing up or looking bad. It's a decade long pattern." --Badeye observation--
#2. To: Capitalist Eric (#1)
LMAO.
As has been previously noted, you hve no comment about the actual article, Alinksy...
Stay Thirsty My Friends...[some guy in a commercial who claims to not always drink beer but who is always seen drinking beer]
#3. To: war (#2)
Eric seems to be limited to two responses. One, like here, and the other is to post a multi-page article written by someone else.
It's strange that a student working towards an advanced degree can't write something of his own to make his point.
#4. To: Skip Intro (#3)
How he could *think* that anyone would believe him to be anything more than a fool is beyond my feeble powers of comprehension...
Stay Thirsty My Friends...[some guy in a commercial who claims to not always drink beer but who is always seen drinking beer]
#5. To: Brian S (#0)
Another myopic leftist who just doesn't understand how the world has changed in the last several decades.
During the Eisenhower administration, half the world was still recovering from the destruction of WWII, while the other half sank into totalitarian communism. America didn't have many competitors, so we produce half of the world's output. Today we have competitors all over the world including from ex-Communist countries in Asia and Eastern Europe, who in many ways are more capitalist that the U.S.
Yes, America had higher tax rates. But so did every other country in the world. Sweden used to have a 104% top tax rate. Today, according to the Organization for Economic Cooperation and Development, the United States has the most progressive tax system in the world, while Sweden has just about the least progressive tax systems in the world.
Other countries also offer far better regulatory environments than the United States. For example, it costs Intel $4 billion to build a new fab in America. $1 billion of those costs are taxes and regulatory costs. So, Intel is now building fabs in Taiwan, China, and other places that value the jobs that they provide.
Reich needs to pull his head out of... the 1970s.
Wake up and join the real world, bozo.
#6. To: Skip Intro (#3)
He should get points for font usage, though.
-------------------------------------
Why don't you make like a tree and get out of here?
#7. To: jwpegler (#5) (Edited)
it costs Intel $4 billion to build a new fab in America. $1 billion of those costs are taxes and regulatory costs. So, Intel is now building fabs in Taiwan, China, and other places that value the jobs that they provide.
The jobs are an ancillary "benefit". The bribes and kickbacks made to officials to not give a shit about a living wage, working conditions and the like are the primary benefit.
Oh...yea...it sucks to do biz in America because we worry about our air, water and, foremost, the health of our workers...
You want Reich to get his head out of the 1970's and reset it firmly to 1917...
Stay Thirsty My Friends...[some guy in a commercial who claims to not always drink beer but who is always seen drinking beer]
#8. To: war (#7)
it sucks to do biz in America because we worry about our air, water and, foremost, the health of our workers...
That's the best summation of Peggy's philosophy that I've seen here.
#9. To: Skip Intro (#8)
Hey...I got one right!!!
Stay Thirsty My Friends...[some guy in a commercial who claims to not always drink beer but who is always seen drinking beer]
#10. To: war (#4)
How he could *think* that anyone would believe him to be anything more than a fool is beyond my feeble powers of comprehension...
It would seem, that we do agree on something! [GASP!]
We agree that your powers of comprehension are, indeed, feeble.
Thanks for playing!
DUMMY DwarF: ...I'm eating a meatball...
Capitalist Eric: Foreplay before the president's staff?
"Whenver the dwarf sees something negative about a Democrat, he tries to change the topic of the thread to something else. Usually a personal attack, followed by mutterings about correct 'grammar' 'spelling' whatever. Anything he can think of to avoid a discussion about a Democrat screwing up or looking bad. It's a decade long pattern." --Badeye observation--
#11. To: Capitalist Eric (#10)
It would seem, that we do agree on something! [GASP!]We agree that your powers of comprehension are, indeed, feeble.
Thanks for playing!
Yet an explanation in your own words instead of your usual repetitive garbage would be a sufficient answer.
When the people are afraid, that's when the greatest long term money is made.~~~~Clark Howard
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