Tuesday, March 2, 2010

The Supply Side Train Ride

Supply siders kept wages stagnant while giving more money to the super rich. Top 1%? No, way too course a comb. o.1%? No. o.o1% Closer, The money seems to have clustered around the top 14,000 tax returns. While our wages have been stagnant, these have gone up 100's of times.
So I ask you. Is it possible for you to work 200 times harder than you do now? Or be 200 times smarter than you are now?
Anyway, the point is the supply siders need shoppers to buy these "supplies".
Well, we ran out of money. They gave us credit cards. Auto loans. Then we ran out of credit.
Where to get more money now? From our parents. They lived through the good times when there was a healthy middle class. Good wages, Unions. High marginal tax rates. And they put that money into homes. Look at all that equity in these homes these people inherited. I think you know what happened. But what do we do now?

The money is all gathered at the top. Mmm, look at all that money in Social Security and Medicare. Privatize. But what after that?

Some people are squealing about all this money spending and deficit growing. But they have shown they don't really care about that. The problem is who is getting the money. The real problem they have is that it is not going to the 14k who already have most of the money. Not like they won't end up with it anyway. The tax laws and subsidies will get it there. Money does trickle up. They just want a more direct path.
Look at Germany. Savings rates are very high. They don't get no money down, low interest loans. So they save up. And when a small business or industry needs some capital, there it is. They borrow from Germans rather than Chinese. Like America used to do.

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