Posts Tagged ‘causes’
Why Wall Street Mitt is Wrong When He Says He’ll Cut Government Spending and That Will Solve All Our Economic Problems
Posted in corruption, Economics, Economics, recession, Federal Reserve, free trade, immigration, income redistribution, Mitt Romney, Recessions, the Rigged Game, wealth redistribution, tagged austerity, cause, causes, government spending, Great Depression, income redistribution, mitt romney, reason, reasons, Recessions, redistribution, Ron Wyden, wealth on Jam6000000amSat, 16 Jun 2012 08:44:08 +000012 10, 2010 | Leave a Comment »
The US economy is slowing and there’s a reason for it. This is lost on Wall Street Mitt Romney, a presidential candidate that wants to elevate the economic aristocrats of Wall Street by laying waste the American middle class.
So why is the economy slowing? Government spending is decreasing, thanks to Republicans in the House of Representatives who would rather starve middle class babies to death than follow the president’s lead and enact policies that might make President Obama re-electable.
So why is decreasing government spending a bad thing? Neither Republicans, Democrats or the corporate media want you to know the real reason.
Right now the 1 percent steal via corrupted government legislation about 26 percent of the total US income, that includes 93 percent of all income growth over the last two years. They’re getting more and more while the 99 percent is getting less and less. Thirty years ago, the 1 percent got around 8 percent of total US income. Three years ago it was 24 percent.
That means the 99 percent has less money to demand the goods and services necessary to keep the economy afloat.
What do the rich do with the cash? They invest it in sucking more cash out of the 99 percent. They buy stocks and bonds and push CEO’s to ship jobs overseas. The extra cash gives them additional funds to purchase more legislators, like Wall Street Senator Ron Wyden, and influence them to enact free trade treaties that enable corporations to ship the jobs of the 99 percent overseas, or make it easier to create them there, rather than here. The difference between the old, higher, wages here and the new lower wages there go into the pockets of the 1 percent via higher stock prices, rising dividends and greater corporate profits. The 1 percent also purchase deregulation, which helps to suck us dry, as well as other legislation that does the same thing.
So if the members of the 99 percent experience a reduction of income from 92 to 74 percent, that means they have less money to spend. The economy should collapse unless there’s something that makes up the difference of 18 percent. That difference took the form of a housing bubble to some degree. It took the form of a credit bubble and a tech bubble. The truth is that, ultimately, government spending has gradually taken up the slack.
Reduce government spending right now and the demand for goods and services slows and the economy contracts, which it appears to be doing. It’s possible the cutbacks are insufficient to send us over a cliff just yet, since the spending reductions in terms of percentage aren’t that huge.
On the other hand, if Wall Street Mitt becomes president he’ll put the petal to the metal, slash government spending, and send us barreling further into an economic catastrophe that may make the Great Depression look like great times. Actually, we’re already in a calamity brought about by Republican and Democratic Party income redistribution scams that suck money from the 99 to the 1 percent, but this can’t go on forever, unless most voters prefer the US become a banana republic.
In other words, a vote for Wall Street Mitt is a vote for a rapid expansion of unemployment that will likely enrich Wall Street titans by redistributing income from the 99 to the 1 percent.
As an aside, this redistribution scam has brought on every recession for as far back as statistics are available. Here’s a little known fact. Dividend payments soared during the first eighteen months of the Great Depression. The rich got richer as people were laid off and the wages from the lost jobs were diverted to profits and dividend payments.