View Full Version : More Dummienomics

12-17-2010, 12:33 PM
Donnachaidh (1000+ posts) Fri Dec-17-10 10:22 AM
Original message
Why Tax Cuts For The RICH Killed The economy in 1929 and Are Killing us again


:snip for chart at link:

Here is where the problem lies with the conservative argument defending tax breaks for the top 2%. It is causing a greater gap in our income brackets.

The disparity of income in this Country has grown to Gilded Age levels.

In 1925-26 the top marginal income tax was DROPPED from 73% to 25%. This caused the greatest disparity in income in our history until today.

The rich KEPT most of their money and it wasn’t distributed through out the economy.

What happens here is a smaller pool of people are HOLDING a larger share of the wealth.

This essentially puts a strain on DEMAND for products. The wealthiest can only consume so much and we all know it is CONSUMPTION that drives our economy. In fact it is 2/3rds of our economy.

In 1926 and now in 2010 we are at the same crossroads. The top 2% are holding a majority of the wealth and the pool of consumers has shrunk to pre-depression numbers.


Essentially the majority of the wealth they are keeping is sitting in banks or stocks and even in the Cayman Islands. It is not creating demand, which puts people to work.

More at the link ---


Hey, Dummie, do you the money those evil rich people put in banks just sits in a vault? Sorry, it doesn't. The bank loans that money so it does end up in the economy. Think about car loans, home loans, loans to businesses, etc... and THAT generates more demand than the government stealing it and pissing it away.

12-17-2010, 12:39 PM
ladjf (1000+ posts) Fri Dec-17-10 10:37 AM
Response to Original message
4. The rapid paced shift of wealth to the rich is the number one
threat to life on Earth other than large scale natural catastrophes.

Words VAPID, and STUPIDITY, just spring to mind....:eek:

Dan D. Doty
12-17-2010, 01:31 PM
Once more, Moonbats look for an answer that makes them feel good; not the one that works.

It seems they don't understand the meaning of CAPITAL.

Fore them its all about their Marxian wetdream and how they, as the Elite will transform the world into the drama playing in their head.