Archive for February 11th, 2013

Warren Buffett on Increasing Taxes on the Rich

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The economy sucks under President Barack Obama, especially for those under the age of thirty, but if you’re a member of the top 1/2 of 1 percent, you’re doing pretty good since the president intends to use legislation to redistribute income from the bottom to the top. That’s what he’s been doing. That’s why corporate profits are at an all time high when demand is so slack. That’s why the Dow Jones average is at an all time high, because income is continuously being redistributed from the 99 to the 1 percent. Free trade is a perfect example of an income redistribution scam. The president has signed three of them into law, despite government studies showing how they result in job losses. Check out the following link. https://johnhively.wordpress.com/2013/01/18/the-biggest-income-redistribution-scam-free-trade-treaties/

Still, for the 99 percent it’s a better economy than when George W. Bush left the nation in ruins. However, it’s not as good as under any president since Herbert Hoover (and Bush) left the nation in shambles in March 1933. That’s a lot of presidents.

Think about it this way. Under President Jimmy Carter, the US added 230,000 jobs a month on average, with an economy with 60 percent of the population and 60 percent of the gross domestic product as today. In comparison, it’s an awesome month for Obama if the economy creates 180,000 jobs thirty-three years after Carter left office. Why the difference? It’s simple. When Carter was president, the 1 percent took home about 8 percent of the total national income, compared to slightly over 30 percent today. That’s why there’s such a significant difference in the performance of the economy under Carter and Obama.

The 1 percent invest their money in derivatives, like credit default swaps and bonds backed by home mortgages, and things that produce nothing, and they typically are a drain on the economy. The 99 percent use their money to buy goods and services, which stimulates job growth and wage increases. That’s why income distribution is so important. Obama knows this, but unlike President Franklin Roosevelt, Obama refuses to do anything about it. The president also allows Wall Street criminals to go free, something not even the corrupt and incompetent George W. Bush did when Worldcom and other companies committed criminal acts.

In other words, Obama has no intention of doing anything that makes the nation so ill. His real base is a slice of the 1 percent. Still, give him some credit where credit is due. Okay, not that much credit is due to him except for the gains on Wall Street and the record setting corporate profits. That hasn’t done anything for the 99 percent except suck them financially dry. Check out the graph below.

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