Robert Reich on The Seven Biggest Economic Lies -- Know the truth and spread it!

[Better Believe It]

THE SEVEN BIGGEST ECONOMIC LIES
By Robert Reich
October 12, 2011

1. Tax cuts for the rich trickle down to everyone else. 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 have dropped since George W. Bush. Trickle-down economics is a cruel joke.

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. 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.

4. Cutting the budget deficit now is more important than boosting the economy. 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.

Read the other three biggest economic lies at:

http://www.commondreams.org/view/2011/10/12-2

[kentuck]

1. I misread your headline..

I don't think Robert Reich is a liar? :-)

[Better Believe It]

4. Thanks for bringing that to my attention. Reich isn't lying!

:)

I hope the new caption helps correct that misinterpretation.

[kentuck]

7. Thanks! That is much improved.

:-)

Reich is one of the few still telling it like it is...

[Better Believe It]

11. I sure hope so!

:)

[FiveGoodMen]

2. Quick, someone get this info to our President

He clearly doesn't understand any of it.

[Better Believe It]

5. He understands all of it.

[FiveGoodMen]

6. Did I forget this?

:sarcasm:

[OhioChick]

3. K&R n/t

[hifiguy]

8. Reich sets forth complex ideas with more clarity than anyone.

He is invaluable - anyone who doesn't have to be watered twice a week can understand his concise and informative writing.

[Uncle Joe]

9. Kicked and recommended, this is the second thread re: #7 that I have

recommended today.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2103421

I just need one more to make it a charm

Thanks for the thread, Better Believe It.

[Better Believe It]

10. Check out Reich's Youtube video on this at:

http://www.youtube.com/watch?feature=player_embedded&v=mM5Ep9fS7Z0

[Laelth]

12. k&r for the truth. n/t

-Laelth