If you turn on the TV to a political channel, or read a webpage, you're likely to come across some sort of comment such as "We need to cut spending because the debt is too high". However, this masks a basic reality. This is not about the debt, it is about the transfer of wealth from the middle class to the poor.
(1) To decrease the deficits and consequently, debt, there are two and only two methods:
* Cut Spending
* Increase Revenues (largely taxes).
Anyone seriously concerned with decreasing the debt must therefore consider both options. If someone comes up to you and says "we have to cut spending to decrease the debt" or "we have to increase taxes to decrease the debt', they arent telling you the full truth. What they should say first is "We need to decrease the debt, and all options are on the table".
Once we have this basic agreement (which pretty much exists), then we move on to question 2:
(2) To decrease the debt, who do we take the money from?
Its a simple point. If there is a debt, someone must stump up the cash. Who will that be? We could take it from Muslims, or from Jews, or from Catholics, or from gays, or from Amish, or from telephone sanitizers, or indeed from all of the above. But because we are talking about money, lets divide people according to their wealth (Ideally wealth, not income). So the options are
(1) The poor
(2) The middle class
(3) The rich
(4) Some combination of the above.
This is a real choice, and it represents a difference in party ideology. The left prefer to take the money from the rich, the right prefer to take the money from the middle class and poor.
Of course, the right wont ever tell you that they prefer to take money from the middle class and poor, but all their policies are pointing in that direction:
*Decreasing taxes on corporations (wealthy)
*Decreasing taxes on investment income (mainly earned by the wealthy)
*Cutting Social Security (mainly hurting the middle class)
*Against Universal Healthcare (mainly hurting the middle class and poor)
*Opposed to the minimum wage (hurting the poor)
*Introducing a 9% national sales tax (Hermann Cain) (a tax that would be mainly paid by the middle class).
These are simple facts: Republicans and Tea Party want to protect the wealth of billionaires and take away "welfare" and "entitlements" from the middle class and poor.
(3) Once we have had a national debate on which economic class we want to make pay, then we can progress. But at the moment, many in the debate are lying about their true motives - a wholesale transfer of wealth between the economic classes.
If you're worried about the debt, you shouldn't be taking tax increases on the wealthy off the table, BECAUSE IT WOULD DECREASE THE DEBT.
Oh of course, if we tax the rich they will leave. Really? Somalia is a 0% tax regime. See anyone moving there? Will high taxes kill business? IKEA says no. The fact is that the rich like living in a nation where the government provides peace and security, infrastructure, and educated workers. They like fine restuarants and clean air. So the rich arent going anywhere. If they move their financial assets abroad, revoke their citizenship and have them move their asses where their assets are. You can live in the Caymans if you like, but you have to apply for a visa to visit San Francisco or New York.
But to see how silly this argument is, consider about how the minimum wage affects the workforce. Why arent our workers moving to high-wage economies, if people just follow their financial interests? Plenty of European countries have much higher minimum wages and better social security nets. Yet they are not moving. The reality is that people do not like to move. Its why people who live in Flint Michigan or Detroit dont move to rich areas.
REALITY:
The reality is that the real motive is to transfer wealth from the middle class to the rich.
To do this, republicans drive up the debt so that they can scare people about the debt. Then, once the debt is high, they say we need to cut spending (never increase revenues - that is always off the table). Then, once we have balanced the books again, we need more debt for round two, so we give away the savings to the rich as tax cuts, and then we scream about the debt all over again. Its a nice little scam, and because of that scam, the middle class are continually getting poorer while the rich are getting richer.
You dont believe this?
Reagan/Bush drove up the debt.
Clinton/GOP cut spending and balanced the budget
Bush II immediately complained that this was "the people's surplus" and rather than use the money to pay down the debt, gave it all away in a $2 trillion tax spree for the rich.
When the deficit explodes again as a result, is the solution to repeal the tax cuts that exploded the deficit? Nope. Of course the answer is to once again have the middle class pay in reduced spending.
And so we go.
Spending cuts for the middle class, tax cuts for the wealthy.
The debt is only used as a weapon to drive this transfer of wealth.
Why the middle class put up with this is beyond me.
Maybe its just that the rich can afford to advertise their scam like crazy.
No comments:
Post a Comment