Why Tax Cuts For The RICH Killed The economy in 1929 and Are Killing us again

[Donnachaidh]

http://www.politicususa.com/en/why-tax-cuts-for-the-rich-killed-the-economy-in-1929-and-are-killing-us-again

:snip for chart at link:

Here is where the problem lies with the conservative argument defending tax breaks for the top 2%. It is causing a greater gap in our income brackets.

The disparity of income in this Country has grown to Gilded Age levels.

In 1925-26 the top marginal income tax was DROPPED from 73% to 25%. This caused the greatest disparity in income in our history until today.

The rich KEPT most of their money and it wasn’t distributed through out the economy.

What happens here is a smaller pool of people are HOLDING a larger share of the wealth.

This essentially puts a strain on DEMAND for products. The wealthiest can only consume so much and we all know it is CONSUMPTION that drives our economy. In fact it is 2/3rds of our economy.

In 1926 and now in 2010 we are at the same crossroads. The top 2% are holding a majority of the wealth and the pool of consumers has shrunk to pre-depression numbers.

(HOW MANY CARS IS PARIS HILTON GOING TO BUY?)

Essentially the majority of the wealth they are keeping is sitting in banks or stocks and even in the Cayman Islands. It is not creating demand, which puts people to work.

More at the link ---

[HopeHoops]

1. Do you think Paris Hilton would ever be caught in an American-made car?

I'll take a Lincoln over any import. They just don't make wagons or vans and that's what my current needs dictate that I have. But really rich people need over-priced cars to prove that they are rich so they buy over-priced imports.

[Jackpine Radical]

2. Oh, but it's all different now.

Really, it is.

In the Roaring 20's, we were at peace and had a very small military. These days, we have an incredibly large military establishment (about as large as the combined militaries of the rest of the world), and two nice wars going on. Furthermore, China and the Saudis are perfectly happy to keep loaning us money to finance our imperial ambitions. All the Chinese have to do is watch us pour our money down various middle-eastern ratholes, and then walk in & buy what's left for pennies on the dollar.

What's not to love about a scenario like this? We don't need no stinkin' consumers.

[fascisthunter]

3. those saying tax cuts will help create jobs are liars

who purposefully ignore history. This is why our economy NEEDS to be regulated. When we leave it to the greed heads, this is what happens. And to add insult to injury, they blame everybody but the rich who created this mess through what I consider to be criminal activity, even treason!

[ladjf]

4. The rapid paced shift of wealth to the rich is the number one

threat to life on Earth other than large scale natural catastrophes.

It is vital that the 98% of the human population who are the victims of this gigantic heist recognize what is taking place while there is still time to intervene.

Step one is to clearly identify the probable perpetrators so that the focus of the intervention isn't diffused into non-constructive avenues.

[FreakinDJ]

5. I have been saying the same thing here at DU for a long time

yet - still I get RATpubliCON Talking Point replies

[ladjf]

8. Keep saying it. You are addressing the number one problem

facing the human race. That is, the stealing of wealth by the already obscenely rich. IT MUST STOP or the human race is toast.

[ladjf]

6. You are exactly "on the money" (pun intended).

The question is what can be done to reverse this criminal activity?

I like your post and look forward to seeing more from you on the same topic.

[xchrom]

7. Recommend