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This morning's Beacon has a short front page piece from AP writer Jeannine Aversa entitled, "Tax worries have the wealthy cutting back."
No, seriously,...that's the title.
Here's the premise.....
Wealthy Americans aren't spending so freely anymore. And the rest of us are feeling the squeeze.
Economists say overall consumer spending has slowed mainly because the richest 5 percent of Americans — those earning at least $207,000 — are buying less..... Those shoppers have retrenched as their investment values have sunk and home values have languished.
Got that? The richest 5% of Americans just aren't spending like they used to......and because of the top 5%'s cutting back, the rest of us are up sh*t creek.
Bear with me.....I'm going to build to a WTF climax.
Continuing the AP article...
In addition, the most sweeping tax cuts in a generation are due to expire in January, and lawmakers are divided over whether the
government can afford to make any of them permanent as the federal budget deficit continues to balloon. President Barack Obama wants to allow the top rates to increase next year for individuals making more than $200,000 and couples making more than $250,000. The wealthy may be keeping some money on the sidelines due to uncertainty over whether or not they will soon face higher taxes.
I've been hearing this new meme being spun for a few weeks now. It is being said repeatedly by Serious Professionals that the reason Banksters are sitting on a combined cash balance of $1.5 trillion is because of "uncertainties". Ultimately, those "uncertainties" are almost always explained by bringing up the expiration of the Bush tax cuts.
There are no uncertainties about Bush's tax cuts, not really. In 2001, Republicans voted those deep tax cuts into place to last only 10 years. They didn't have enough votes to do otherwise. Bush's tax cuts, primarily benefitting the wealthiest Americans, expire January, 2011. Nothing uncertain about it.
Back to the AP piece.....the writer wants the reader to think a certain way about wealthy Americans....
Think of the wealthy as the main engine of the economy: When they buy more, the economy hums. When they cut back, it sputters. The rest of us mainly go along for the ride.
Reread that......just to allow the audacity to sink in. "The rest of us mainly go along for the ride." Have you ever read a more ass-kissing tribute to the wealthy in your entire life?
The lives of the 95% of us who are not filthy rich are entirely dependent on whether the top 5% spend enough money to keep us from, I guess, starving to death. Thank god for our economic saviours who make more than $250K per year.....for it is they, and they alone, who own, and drive, the American engine of economic production. The rest of us?.....hitchhikers......leeches.
Take time about now.....to hurl.
Our American Masters rule all things...
.....economists expect the rebound to lose momentum in the second half of the year. Especially if the rich don't resume bigger spending.
''They are the bellwether for the economy,'' said Mark Zandi, chief economist at Moody's Analytics. ''The fact that they turned more cautious is why the recovery is losing momentum. If they panic again, that would be the fodder for a double-dip recession.''
Heavens to murgatroid....we had better do whatever it is the top 5% want done.....or we'll be in even deeper sh*t, huh?
Well...no....that's just what the AP writer and a host of very rich teevee talking heads....and a whole bunch of Republicans....and a few Democrats.....want you to think. They really, really, really want those tax cuts on the top 5% to be extended.....I mean really.
But alas.....it is all a crock of stinking excrement.
Those top 5 percenters.....those "uncertain" wealthy Americans out there who are questioning whether they should spend enough so the rest of us can "go along for the ride"....or not.....account for....
They account for about 14 percent of total spending.
To recap: 86% of consumer spending in the U.S. is done by the bottom 95% of American income earners. EIGHTY SIX PERCENT.
But in the AP writer's mind.....and in the minds of the Very Serious....if the top 5% refuses to maintain their whopping 14% share of spending.....we're all doomed.
All together now....WTF?