I am listening to Chris Matthews and his guests on MSNBC. This is THE left-liberal network, right? Fox’s counterpoint. I expect it to differ from the standard anti-tax, free market ideology which has taken over most of public opinion.
Today, they are discussing the recent stock market decline, including the Dow’s 513 point drop on August 4. And of course, bemoaning America’s economic troubles.
What is one to do? Matthews asks his expert guests. They all agree that it’s terrible that Obama is stymied at every turn by the Tea Party and by radical Republicans. What can be done?
The experts give their solution. And you know what it is?
Cut taxes! Corporate taxes, to be sure, counterbalanced by closing loopholes, so that tax reform remains revenue-neutral. But still: this is the key recommendation of LEFT-LIBERAL thinkers on MSNBC! Cut taxes!
THAT’S IT?!?!
Here is their well-known and worn-out thinking: Corporate America has piled up $2.5 trillion in cash. Corporate America is very profitable, because it makes lots of money overseas - in China, Brazil, India, Russia, etc.
But they won’t spend money and create jobs in the US. Instead of hiring people, they lay people off, especially permanent employees with costly benefits, replacing them with machines, cheap temporary help and workers in India. So the private sector is not creating jobs. It is not reviving the economy.
Until last year, the government did revive the economy a little, with Obama’s stimulus and Bernanke’s “quantitative easing.” But that’s over. Now, there is not a chance in hell that the government will once again be permitted to stimulate the economy and save thousands of jobs, as it did when it saved the automobile industry. The Tea Party-dominated Republicans will make sure of that. Congress continues to increase the unemployment rate, (as it did in early August when it shut down the FAA).
So corporate America is not WILLING to create jobs, and the government is not PERMITTED to create jobs.
So the solution they propose is to make the already fabulously profitable corporations even more profitable, by reducing corporate taxes! They say that this will motivate them to start hiring again.
This is the solution advocated even on MSNBC, the left-liberal network and, I have to add: even subscribed to by Obama himself and his policy advisers!
What am I missing? As I see it, it’s clear that the corporations don’t want to spend their money on jobs and on investments. They want to sit on it instead.
In ancient Rome, this would have called for proscriptions. But I don’t advocate such a bloody solution. In civilized society, all that this calls for is TAXES.
Why is Keynes so utterly and totally out, and Adam Smith the only voice?
Why are there no calls for at least a mini-New Deal? For hiring 4 million Americans to fix our rotting bridges, roads and schools? And to do so without increasing the national debt, by RAISING taxes, not reducing them?
Today, even “liberals” see tax cuts as the solution to all our economic problems. It’s hopeless. We have lost our way.leave comment here
11 comments:
It's an aspect of the phony "balance" that American media insists on. If there's a right-wing television network then there just HAS TO BE a corresponding left-wing network.. If there isn't one, they'll just act like there is. Why do they do this? So that they won't have to do their job of analyzing which of two competing realities is true."
Tom, That's because MSNBC is not really "liberal." It just purports to be. It is really a very wealthy, expertly managed CORPORATION that is intent on making profit, and keeping as much wealth as possible. So of course it wants to pay as little in taxes as possible! You have to follow the money and not lose sight of who Matthew's employer is. Matthews is not an independent journalist by any stretch. His employer -- this very powerful, wealthy, private corporation -- has to approve and guide everything he says. He was just interviewed on Progressive Talk Radio, and admitted to all that!
Interesting comments, you all. I still (usually) prefer MSNBC's take on things, to Fox's, even though most of the media often disappoint.
Look how well no taxes has worked out for all those third world nations. No taxes outside property taxes, no graduated income, and a cash economy. No thanks! How com nobody brings that up whenever Republican or tea party people suggest more tax cuts? Come election time every time a politicians brings up more taxes just backdrop third world images showing pathetic health, infrastructure and education services.
Tom, Why does Obama court GE and GM? Why did he talk to the leaders of Google and Facebook? I think its because he thinks they have answers to solving our economic problems. But Mark Zuckerberg is just a young guy that got rich--he can't help Obama. GE got 3 billion in tax breaks from playing the "green card" to him, and GM got him through labor unions. None of these people he is looking to have the answers to making the economy or employment grow.
When the DOW falls, even liberals think large corporations are the solution. Personally, I believe that large corporation can do some things that small companies can't do, but they will never be motivated to hire as many people as possible. They will always cut jobs when possible to increase profits.
On the other hand, government-provided jobs have to be paid for by the rest of the economy in some way, and since we are at the point where there are more government workers than the entire economy can support already, I'm convinced neither the large corporate strategies nor present government strategies are the answer.
What we need is to revamp the system so that capital is naturally distributed to the largest number of people. Note that I said distributed not redistributed.
Capital is needed for any business to succeed. It is not widely distributed when either the financial industries control it all through credit, nor if the government controls it through a command economy. Decentralization is required for prosperity. The Chinese learned this, and now they are succeeding.
We ought to be passing laws that are the modern equivalent of homesteading land, by enabling people to homestead certain types of capital and penalizing the consolidation of wealth everywhere.
I gave a talk Saturday evening making exactly the same point. Ah, but what's to be done?
Thanks for your comments.
Unknown, my point precisely.
Gordon brings up many important points. I dont know about GE (all I heard, like everyone else, is that it managed to pay either no taxes or very few taxes recently)
GM? Well, the Obama administration's rescue of the the US automobile industry has got to be entered as one of the administration's successes.
Government work projects, yes or no? I favor FDR, New Deal-type projects ( TVA, Hoover Dam, etc.) I have always learned that these were great and positive things, back during the previous major economic crisis.
Homesteading is a great idea.
Gordon makes a commendable point in many of his comments and articles. He consistently reminds us that there was a time when Capitalism worked well, the Capitalism praised by Max Weber.But late, monopolistic capitalism, that's a different story.
"Why are there no calls for a mini-New Deal?" The original FDR new deal did not end the recession which only turned around after 2nd WW. What turned it around? During the war people could not buy a car,much butter or meat or sugar,tires, refrigerators etc. People were forced to save money, tin, string, buy War bonds, and paid off debt so they had savings to spend at war's end.
Now it is estimated 61% of households cannot handle a $1000.00 emergency without family, friends, or credit card. The is not much disposable/discretionary income to spend.
GDP is total personal income minus personal taxes. Raise taxes & reduce the ability to spend.
The last sentence says"we(liberals) have lost our way." Nobody know what the "way" is. Our nation has stifling public debt and greater private debt. Add credit card debt, student debt,pension benefit debt & mortgage debt and the total far exceeds public debt. If anyone has the answer they should run for Presient.
Anonymous:
Of course I am aware of the familiar statement that it was only World War Two which finally dragged us out of the Great Depression, and there is some truth to it. However, President Roosevelt's decade long fight against the Depression was also important.
As to whether increased public spending helps or harms recovery, let me just remind you that World War Two (which, according to the familiar refrain, was the solution to the Great Depression) was the largest "Public" program in history. Personally, I would prefer it if the government found more constructive public programs than global war.
Mon ami Tom,
Je suis d'accord. Nous sommes sous les pieds des grands cartels qui poursuivent seulement les profits.
Tom
thanks, Tom:
you say that you agree and that we are at the mercy of the great cartels which only seek profits.
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