May 15, 2005
-- by Dave Johnson
I was searching for something I wrote a few years back, because someone referred to it in a comment on another blog. While searching I came acros an old post, Stimulate This. Excerpt,
The resulting reduction in government revenue forces spending cuts -- which means laying people off or cutting back what is spent on goods which results in laying people off. And the tax cuts cause government borrowing, which increases our debt, which means we all must pay higher taxes to cover the interest on that debt forever or pay extra taxes to pay down that debt. And THAT spending does NOT increase jobs in any way. Worse, what we're doing is borrowing money to give money to rich people, who use the money to buy government bonds -- loaning the money back to the government! Think about the circular logic of this. We're borrowing money from rich people to GIVE THE MONEY WE BORROW FROM THE RICH BACK TO THE RICH! And forever after paying them interest on the money we borrowed from them! It's like giving your house to someone, then borrowing the money from them to pay for the house you gave them! Since Reagan this tax cut process has shifted our economy to an economy where most of us work harder and harder just to pay taxes that go out as interest payments to the rich! (And don't forget that the money we're giving to the rich is OUR SOCIAL SECURITY MONEY! Jeeze, don't even get me started on that!)Jeeze.
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Well, at this point, the government is borrowing from China and Japan to pay the rich, and then borrowing some more for running the government. The hope is that we will never actually have to pay any of this back. Hence the "deficits don't matter" approach. And when this all collapses around us, they will find someone else to blame, like they always do.
Posted by: donna at May 15, 2005 3:38 PM
So, we buy manufactured goods from China and Japan at the expense of American workers. Those two countries give us some of those same greenbacks in return for guaranteed U.S. govt securities. Then we use that money to fund tax refunds for the well-to-do , pay for unnecessary warfare and to hide our red ink. Nice !
Posted by: grascarp at May 15, 2005 5:42 PM
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