The Bush tax cuts helped to wipe out the economy. The same is true of the Reagan tax cuts. There’s not a kernel of evidence anywhere that those tax reductions for the rich created a single net job. But there is growing evidence that they destroyed jobs, or at the least, weakened job growth. That’s because most of the investments of the rich from those cuts were used to purchase paper assets in the growing derivatives markets (which is about $500 trillion big), on buying politicians like Wall Street Senator Ron Wyden, and on destroying democracy for the 99 percent.
Wyden is a case in point. He never met an legislative income transfer scam from the 99 to the 1 percent go without his “yes” vote. He voted for Nafta, the South Korea free trade treaty and others. Those are income redistribution treaties. He knows this. Those treaties pave the way for US corporations to ship jobs overseas, among other devious things. The difference between the old wages and the new help to raise corporate profits, dividends and share prices. The 99 percent lost jobs, the 1 percent received the lost wages of those jobs. There went our tax base for schools, roads, bridges, fire and police, among other government services.
Clinton raised the top tax rate. That took some of the 1 percent’s money out of the political and derivatives markets and left jobs intact. The demand for goods and services expanded when the economy grew, thanks to those tax increases. That’s why small businesses grew twice as fast under Clinton as under Bush.
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