POLITICAL observations & opinions

* Robert K. Lifton debunks Republican proposals for decreasing regulation and lowering taxes on the wealthy

Posted by Lew Weinstein on November 10, 2011

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Robert K. Lifton writes in the Huffington Post (11/10/11) …

  • Listening to  the economic programs presented by the Republican candidates in their debates, I can’t reconcile them with the facts I have experienced in my own life.
  • My view is that what befell the economy and created the huge loss of jobs started well before the 2008 crash.
    • America started to lose ground to emerging markets on a competitive basis in industry after industry as our wage and benefit levels made us unable to compete with the lower wages and non-existent benefits of labor in emerging markets.
    • The second structural development that reduced jobs was the broad introduction of labor saving technologies. Businesses have been taking full advantage of every technological development to reduce employees and increase the productivity of those that are left.
  • What covered up the problem was the availability of large amounts of money to the public by way of uneconomic home mortgages and through credit card and other borrowings. These financings provided the funding for (artificial) levels of consumption that made it appear that the economy was growing successfully.
  • So, my question to the Republican candidates is this: specifically, which regulations would you eliminate and how many net jobs will eliminating each of those regulations create? 
  • Now, let’s turn to taxes.
  • Everyone can agree that reducing taxes on middle class and lower income taxpayers will have the effect of pumping demand into the economy since those taxpayers who are already living up to or beyond their means will, to a very large extent, use the tax savings for consumption.
  • But that is not a reason for reducing taxes on the wealthy, since they already have ample funds to buy what they want and any tax increases will only end up increasing their savings.
  • Republicans argue that the wealthy would make their excess capital savings available for investment. But the investment community is already overflowing with funds, the banks are loaded with money and the large corporations have huge amounts of cash.
  • There is no shortage of funds for investment or loans. There is a shortage of demand for new funds because without the expectation of increased consumer demand for their products, companies will not expand and entrepreneurs will not have the incentive to open new businesses.

In sum, it appears clear that nothing put forth by

the Republican candidates or Republican members of Congress

seriously addresses the unemployment problem or the huge debt burden

borne by home owners, students and credit card debtors.  

read the entire article at … http://www.huffingtonpost.com/robert-k-lifton/republicans-economy_b_1085106.html

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LMW COMMENT …

I think Mr. Lifton’s analysis is sound and accurate. However, it seems to me that his analysis applies to Democratic politicians as well as Republicans.

Politicians of both parties rarely show that they have any understanding of what our problems are, how they came about, or what to do about them. The complexity of our problems is beyond most people’s ability to comprehend, so they are attracted by simplistic ideas and slogans.

I have been researching the events surrounding Adolf Hitler’s attempted coup in Munich in 1923 (for my next novel) and the parallels are frightening.

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One Response to “* Robert K. Lifton debunks Republican proposals for decreasing regulation and lowering taxes on the wealthy”

  1. Giving the wealthy a tax break because they might create jobs? That’s laughable: 99% of job creators PEOPLE WHO ACTUALLY HIRE PEOPLE are in the middle class, the wealthy rarely ever use PERSONAL INCOME, which is what we are taxing, to hire anybody…except a gardener, a maid or a chauffer.
    What a**hole actually believes that a wealthy person actually uses their’ own money to hire anybody, much less create jobs. Their goal is always to eliminate jobs to boost their’ own bottom line. The wealthy being called “Job creators” is laughable.
    It just shows that the Republicans are all well-paid shills of the Plutocrats.
    I could go on but until we pay for and get national health care we are never going to truly be the land of the Free because we ceased being the home of the Brave a long time ago.
    Keep your billions have your $18 million dollar weddings, let the sick die: You will reap what you sow.

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