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Blog of Mass Destruction

"It Doesn't Work"

By The Reverend Published: December 6, 2011

Obama gave a speech today. I have a few major disagreements with Obama's leadership....but I couldn't find anything I disagreed with in today's speech.

I've been trying to curb the profanity...and still not stifle myself. But in this case, President Obama was spot-the-

f**k hell on.

Pre-emptive disclaimer: I fully recognize the fact that President Obama is in full metal jacket campaign mode. Of that, I have no doubt. At the same time, his speech today clarified and reinforced the truth about supply side economics and Republicans obeisance to it.

If you've been reading this blog, you'll already be familiar with a few of the points Obama makes in his argument over higher taxes on the wealthy. Take special notice of his comments about "unfairness", a subject we've been talking about on King's and this blog....

So far, most of the Republicans in Washington have refused, under any circumstances, to ask the wealthiest Americans to go the same tax rates they were paying when Bill Clinton was president.

Now, keep in mind, when President Clinton first proposed these tax increases, folks in Congress predicted they would kill jobs and lead to another recession. Instead, our economy created nearly 23 million jobs and we eliminated the deficit. Today, the wealthiest Americans are paying the lowest taxes in over half a century. This isn’t like in the early 50s, when the top tax rate was over 90%, or even the early 80s, when it was about 70%. Under President Clinton, the top rate was only about 39%. Today, thanks to loopholes and shelters, a quarter of all millionaires now pay lower tax rates than millions of middle-class households. Some billionaires have a tax rate as low as 1%. One percent.

This is the height of unfairness. It is wrong that in the United States of America, a teacher or a nurse or a construction worker who earns $50,000 should pay a higher tax rate than somebody pulling in $50 million.

He makes a good argument.

Obama also went right after the shameless obstructionists....

For the first time in history, the reform we passed puts in place a consumer watchdog who is charged with protecting everyday Americans from being taken advantage of by mortgage lenders, payday lenders or debt collectors. The man we nominated for the post, Richard Cordray, is a former Attorney General of Ohio who has the support of most Attorneys General, both Democrat and Republican, throughout the country.

But the Republicans in the Senate refuse to let him do his job. Why?

This is the best....

Now, just as there was in Teddy Roosevelt’s time, there’s been a certain crowd in Washington for the last few decades who respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If only we cut more regulations and cut more taxes - especially for the wealthy - our economy will grow stronger. Sure, there will be winners and losers. But if the winners do really well, jobs and prosperity will eventually trickle down to everyone else. And even if prosperity doesn’t trickle down, they argue, that’s the price of liberty.

It’s a simple theory - one that speaks to our rugged individualism and healthy skepticism of too much government. It fits well on a bumper sticker. Here’s the problem: It doesn’t work. It’s never worked. It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible post-war boom of the 50s and 60s. And it didn’t work when we tried it during the last decade.

Remember that in those years, in 2001 and 2003, Congress passed two of the most expensive tax cuts for the wealthy in history, and what did they get us? The slowest job growth in half a century.

All of that is precisely correct. This libertarian ideology of letting go and letting the God-infused free market work it's divine magic through trickle down osmosis with government just staying out of the way....please....what has it done for us?. It has resulted in huge wealth disparity and a disastrous long recovery after an historic collapse in the private banking sector. Hugely deregulated private banking sector.

Supply side economics, trickle down economics not only does not work....it's practice always ends in some form of financial ruin. All for the same reason....greed. Seemingly uncontrollable greed. Savings and Loan event of the 80's. Dot.com bubbles in the 90's. Enron, WorldCom, HealthSouth scandals in the early 00's. Mortgage meltdown bubble of recent years. Always the same result. Many, many Americans wind up being bilked by these disasters.....and in our present situation, the entire nation, except for the top 1%, have been financially punished for the sins of the perpetrators.

No more...."It doesn't work."

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