It does not matter what Conservatives say. When we are in an economic crisis where businesses are unwilling and/or unable to spend government must to ensure the economy continues to turn. Inasmuch as all the evidence that proves this point under Roosevelt, Nixon, and Reagan, Conservatives continue to push snake oil. Reagan clearly used backdoor Keynesian Economic policies under the guise of unfunded tax cuts. Their economic doctrine is their religion and as such does not require proof. Their faith in it suffices.
Unfortunately I do not believe that the more read Conservatives believe their own rhetoric. Their reason for constantly requesting more tax cuts and budget cuts more so now than ever, is directly related to their fear that as Americans become cognizant of the wealth disparity they will start the necessary move to tax wealth equitably. Whereas the working man pays up to 36% of his wages in taxes, the wealthy investor can watch his capital gains taxed at just 15% while drinking tea at his pool. While corporations get treated as more than individuals with respect to their ability to contribute to political campaigns, many pay little if any taxes.
It is Class Warfare. It is Class Warfare by the wealthy & corporations against the middle class and it is not by happenstance.
My Book: As I See It: Class Warfare The Only Resort To Right Wing Doom
Book’s Webpage: http://bit.ly/aB9Zkz – Twitter: http://twitter.com/egbertowillies
Why Budget Cuts Don’t Bring Prosperity
By DAVID LEONHARDT
Published: February 22, 2011
Remember the German economic boom of 2010?
Germany’s economic growth surged in the middle of last year, causing commentators both there and here to proclaim that American stimulus had failed and German austerity had worked. Germany’s announced budget cuts, the commentators said, had given private companies enough confidence in the government to begin spending their own money again.
Well, it turns out the German boom didn’t last long. With its modest stimulus winding down, Germany’s growth slowed sharply late last year, and its economic output still has not recovered to its prerecession peak. Output in the United States — where the stimulus program has been bigger and longer lasting — has recovered. This country would now need to suffer through a double-dip recession for its gross domestic product to be in the same condition as Germany’s.
Yet many members of Congress continue to insist that budget cuts are the path to prosperity. The only question in Washington seems to be how deeply to cut federal spending this year.
If the economy were at a different point in the cycle — not emerging from a financial crisis — the coming fight over spending could actually be quite productive. Republicans could force Democrats to make government more efficient, which Democrats rarely do on their own. Democrats could force Republicans to abandon the worst of their proposed cuts, like those to medical research, law enforcement, college financial aid and preschools. And maybe such a benevolent compromise can still occur over the next several years.
Germany’s Cuts vs. America’s Stimulus – Economic Scene – NYTimes.com
