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Title: Economist Blasts GOP’s ‘Seven Biggest Economic Lies’
Source:
Business Insider
URL Source: http://www.rawstory.com/rs/2011/10/ ... s-seven-biggest-economic-lies/
Published: Oct 12, 2011
Author: By Robert Reich
Post Date: 2011-10-12 14:08:48 by Brian S
Keywords: None
Views: 4173
Comments: 11
The President’s Jobs Bill doesn’t have a chance in Congress — and the Occupiers on Wall Street and elsewhere can’t become a national movement for a more equitable society – unless more Americans know the truth about the economy. Below is a short (2 minute 30 second) effort to rebut the seven biggest whoppers now being told by those who want to take America backwards. The major points: 1. Tax cuts for the rich trickle down to everyone else. 2. Higher taxes on the rich would hurt the economy and slow job growth. False. From the end of World War II until 1981, the richest Americans faced a top marginal tax rate of 70 percent or above. Under Dwight Eisenhower it was 91 percent. Even after all deductions and credits, the top taxes on the very rich were far higher than they’ve been since. Yet the economy grew faster during those years than it has since. (Don’t believe small businesses would be hurt by a higher marginal tax; fewer than 2 percent of small business owners are in the highest tax bracket.) 3. Shrinking government generates more jobs. 4. Cutting the budget deficit now is more important than boosting the economy. 5. Medicare and Medicaid are the major drivers of budget deficits. 6. Social Security is a Ponzi scheme. Don’t believe it. Social Security is solvent for the next 26 years. It could be solvent for the next century if we raised the ceiling on income subject to the Social Security payroll tax. That ceiling is now $106,800. 7. It’s unfair that lower-income Americans don’t pay income tax. Demagogues through history have known that big lies, repeated often enough, start being believed — unless they’re rebutted. These seven economic whoppers are just plain wrong. Make sure you know the truth – and spread it on.
Baloney. Ronald Reagan and George W. Bush both sliced taxes on the rich and what happened? Most Americans’ wages (measured by the real median wage) began flattening under Reagan and has dropped since George W. Bush. Trickle-down economics is a cruel joke.
Wrong again. It means fewer government workers – everyone from teachers, fire fighters, police officers, and social workers at the state and local levels to safety inspectors and military personnel at the federal. And fewer government contractors, who would employ fewer private-sector workers. According to Moody’s economist Mark Zandi (a campaign advisor to John McCain), the $61 billion in spending cuts proposed by the House GOP will cost the economy 700,000 jobs this year and next.
Untrue. With so many Americans out of work, budget cuts now will shrink the economy. They’ll increase unemployment and reduce tax revenues. That will worsen the ratio of the debt to the total economy. The first priority must be getting jobs and growth back by boosting the economy. Only then, when jobs and growth are returning vigorously, should we turn to cutting the deficit.
Wrong. Medicare and Medicaid spending is rising quickly, to be sure. But that’s because the nation’s health-care costs are rising so fast. One of the best ways of slowing these costs is to use Medicare and Medicaid’s bargaining power over drug companies and hospitals to reduce costs, and to move from a fee-for-service system to a fee-for-healthy outcomes system. And since Medicare has far lower administrative costs than private health insurers, we should make Medicare available to everyone.
Wrong. There’s nothing unfair about it. Lower-income Americans pay out a larger share of their paychecks in payroll taxes, sales taxes, user fees, and tolls than everyone else.
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Begin Trace Mode for Comment # 10.
#1. To: Brian S (#0)
As has been previously noted, you hve no comment about the actual article, Alinksy...
Eric seems to be limited to two responses. One, like here, and the other is to post a multi-page article written by someone else. It's strange that a student working towards an advanced degree can't write something of his own to make his point.
How he could *think* that anyone would believe him to be anything more than a fool is beyond my feeble powers of comprehension...
It would seem, that we do agree on something! [GASP!] We agree that your powers of comprehension are, indeed, feeble. Thanks for playing!
#11. To: Capitalist Eric (#10)
We agree that your powers of comprehension are, indeed, feeble. Thanks for playing! Yet an explanation in your own words instead of your usual repetitive garbage would be a sufficient answer.
Top • Page Up • Full Thread • Page Down • Bottom/LatestAuthor: By Robert Reich
LMAO.
#2. To: Capitalist Eric (#1)
LMAO.
#3. To: war (#2)
#4. To: Skip Intro (#3)
#10. To: war (#4)
How he could *think* that anyone would believe him to be anything more than a fool is beyond my feeble powers of comprehension...
Replies to Comment # 10. It would seem, that we do agree on something! [GASP!]
End Trace Mode for Comment # 10.
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