I simply do not understand the conservative idea for economic policy.
We’ve been gaining private jobs. The private sector is literally sitting on trillions of dollars….just waiting for demand to go up.
On a small scale, let’s say you give a bakery $100 tax cut. They could hire someone, they could buy a new and better oven, but if demand is low, they’d be stupid to do any of that. We need to increase demand by helping the middle class.
We’ve been losing public jobs. We could get people working again, have them buy again, if we let Obama pass new legislation to hire teachers, fire fighters, construction workers, police, and others. Which could also allow state governments make up the huge loss of workers they’ve had.
This is an argument that Krugman makes as well, that restoring public job levels would add millions to employment.
Tax cuts are not magic. It’s been shown over and over again. We had higher taxes during Clinton, and prosperity. We had lower taxes under Bush (sustained and further cut by”socialist” Obama), and we have a recession. That doesn’t mean that tax cuts lower productivity. Just that there are more factors in the economy than taxes. But the Republican answer to everything, is just one thing, tax cuts.
I prefer Democrat’s multi-layer approach, it’s specific tax cuts, it’s incentives, it’s putting money into education to create the next innovator, putting money into new technology, putting money into our utilities and systems, to make businesses and people more efficient, it’s supporting workers to build and create working on new projects. I find this approach to be much better than the simplistic faith base economic proposal of tax cuts that Republicans prefer.
I am always open to hearing more from people who disagree with me, so let me know! Just give me some numbers and stats and well reasoned arguments!