Republican Economics in a Nutshell

Republican economic philosophy does not work. Here is why.

The money that drives the economy is shifted away from that very economy it drives.

Imagine taking gas out of your car and trading it on the market because prices are high? Your car stops running.

Imagine if you had unlimited cash. Would you invest it in a measly domestic operation struggling to make 1% on its return….or would you send it overseas where 33% can be achieved.

Personally if it were my money, I would do the latter too. It is a basic fundamental, reaching deep into the human psyche.

The opposite was tried during the Clinton years and worked marvelously. We had record real growth, not the virtual kind imposed by Republican philosophy.

What we did was tax the excessive income. Fairly mind you to the tune of 29%. And we allowed deductions.

Now if I had tremendous amounts of money, instead of having it taxed and going hell know where, I would hide my profits by reinvesting in my business….my business. Doing so would put people to work……My balance book would show little if any profit, but……if one counted my assets which were not taxable, I was doing quite well, thank you very much.

Suddenly, with everyone else also following their natural inclination, saving their own money by reinvesting it in themselves, we are expanding and jobs are needed.

What is interesting is that more people working, have more money to spend, and even further expansion is then needed.

That is the beauty of taxing the wealthy. It works to everyone’s benefit.

And all that hidden money being reinvested into real assets, generates jobs, which does not happen when assets are diverted to paper ones, that rise and fall on the whims of investors.

So why are things not so bad, yet….looking at the chart there is a growing disparity between the two lines. The reason is because we the bottom line have mortgaged that gap with borrowing. We are living beyond our means, and now, time has caught up with us. It is time to pay back our dues and we have no money.

So, as would any human being, we look around to see who has money. It is not us, it certainly is not our government. Most of our money is owned by 1% of our population. They are the ones who are responsible for bailing us out. Failure to do so, means the end of the United States of America.

So how do we go about rebuilding from the rubble.

We tax them. Fairly.

And Republicans ( not local individual ones) are solely to blame. Had the Clinton plan continued to stay in force, we would be on top of the economic pyramid as we speak…….

Republican philosophy, not individuals, is to blame.

For their party to survive, Republicans who understand these economics, need to take over their party. Republicans like Mike Castle, who supported going down the wrong path, need to relinquish control.

By holding their ground, the old dogs doom the party to the ranks of the Federalists, Whigs, Greenbacks, and others who also based their politics on a vaporous financial scheme.

(chart courtesy of Daily Kos)