Get off the tax issue!
By
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To the editor:
For years now, I've heard and read the political Right Wing hysterically claiming that all our economic problems will be solved by lowering taxes; and that is exactly what we have had for several decades now. If that is true, then how come all the economic statistics I see show a steadily downward trend?
Now the best statistic on job growth (or decline) is the Gross Domestic Product adjusted for inflation and liabilities. When this number is graphed, it shows a steady decline since 1956. Other than short lived blips, tax cuts do NOT show a growth in jobs, nor in general prosperity. What statistic does show an almost perfect correlation to the decline is that four letter word: Debt!
Now before all you Right Wingers start pointing your fingers and screaming, "It's the government," note that national debt has to consider all debt, including the financial institutions, other businesses, and household. That mountain of debt now totals 360% of the GDP!
Household debt is almost double Government debt, while business debt is about equal to government debt and financial sector accounts for 50% more than Government debt. It is interesting to note here that most of the business debt can be attributed to the activities of private equity and hedge fund firms leveraged buy-outs. This latter activity quite probably can account for most jobs being lost in manufacturing, not taxes or regulations as claimed by the Right Wing media.
These percentages are reversed in the U.S. Consumer debt continues to grow: Previous to the 2008 financial crisis it had grown from 35% to 98% of total household yearly income. It is now at 135%! Is it any wonder Americans have little money to spend to get the economy going again?
As a result, ³we have been transferring aggregate income and wealth to the financial services industry. All this financial activity is just a deadweight on the system. Recognizing this fact, I was put-off with the local Tea Party demonstration a few months ago with their inane slogans blaming the Government. If they had crossed the street, pulled out their credit cards and cut them up and littered the area in front of the banks, I would have been impressed. Just as in the period following the great financial crashes of 1873 and 1929, we now have decades of austerity ahead of us while we whittle down this mountain of debt.
Instead of telling us the truth, the politicians of either the Right or the Left are spinning fairy tales on how we only need to get the credit markets going again. How pathetic!
Sincerely,
C. Patrick Ventrone
Hillsboro[[In-content Ad]]
For years now, I've heard and read the political Right Wing hysterically claiming that all our economic problems will be solved by lowering taxes; and that is exactly what we have had for several decades now. If that is true, then how come all the economic statistics I see show a steadily downward trend?
Now the best statistic on job growth (or decline) is the Gross Domestic Product adjusted for inflation and liabilities. When this number is graphed, it shows a steady decline since 1956. Other than short lived blips, tax cuts do NOT show a growth in jobs, nor in general prosperity. What statistic does show an almost perfect correlation to the decline is that four letter word: Debt!
Now before all you Right Wingers start pointing your fingers and screaming, "It's the government," note that national debt has to consider all debt, including the financial institutions, other businesses, and household. That mountain of debt now totals 360% of the GDP!
Household debt is almost double Government debt, while business debt is about equal to government debt and financial sector accounts for 50% more than Government debt. It is interesting to note here that most of the business debt can be attributed to the activities of private equity and hedge fund firms leveraged buy-outs. This latter activity quite probably can account for most jobs being lost in manufacturing, not taxes or regulations as claimed by the Right Wing media.
These percentages are reversed in the U.S. Consumer debt continues to grow: Previous to the 2008 financial crisis it had grown from 35% to 98% of total household yearly income. It is now at 135%! Is it any wonder Americans have little money to spend to get the economy going again?
As a result, ³we have been transferring aggregate income and wealth to the financial services industry. All this financial activity is just a deadweight on the system. Recognizing this fact, I was put-off with the local Tea Party demonstration a few months ago with their inane slogans blaming the Government. If they had crossed the street, pulled out their credit cards and cut them up and littered the area in front of the banks, I would have been impressed. Just as in the period following the great financial crashes of 1873 and 1929, we now have decades of austerity ahead of us while we whittle down this mountain of debt.
Instead of telling us the truth, the politicians of either the Right or the Left are spinning fairy tales on how we only need to get the credit markets going again. How pathetic!
Sincerely,
C. Patrick Ventrone
Hillsboro[[In-content Ad]]