Supply Side Economics Failure

“I hope we shall crush in its birth the aristocracy of our moneyed corporations which dare already to challenge our government to a trial by strength, and bid defiance to the laws of our country.” Thomas Jefferson

Don’t fear the word “redistribution”. That’s just a talking point. Without redistribution it isn’t an economy. Trickle down is just another form of redistribution. It basically takes the power of creating jobs away from the government and gives that power to profit motivated corporations. How does that make sense? How has that worked for you? The only people that benefit from supply side economics are those who exploit workers not workers themselves. In the last 30 years we have seen the gap between the rich and middle class grow as it has driven more people into poverty.

Just look at the uneven distribution of gains since late 1970’s which is different from an earlier era when growth was widely shared. And then you tell me how this squeeze on the middle class that has driven more people into poverty has not affected the economy.

This is the result of trickle down. It has caused more of the consumer base to rely on credit due to lack of hard currency due to stagnant wages during an economic expansion. Home values, gas prices, products and services, have all risen while the consumer base’s disposable income contracted causing a snowball effect. This has led to a perpetual national debt ultimately causing the banks to sell worthless assets.

Now the bailout is here which is only debasing the currency by adding to our budget deficit. Causing the dollar to lose more value causes inflation (eventually hyper-inflation) thus making the snowball bigger. We are basically borrowing money from our grandchildren who will pay off this debt so we can borrow from the banks. In other words we are borrowing from ourselves while the bankers pocket the money.

Now Obama is proposing more spending to create jobs which some fear will cause the dollar to crash, but we have no choice unless we want things to get worse. The governments job is to step in a spend when the consumer base cannot. The bail outs also mean they must keep spending or it will have been in vain. In order for the banks to start lending money to us (with our money) they must feel confident in the stock investors. If people do not have money to spend then investors will not invest in the market due to lack of confidence in the stock. We as tax payers basically just payed off all those bad loans that congress allowed to get through with little oversight and deregulation just so we could borrow again. If the average wage would have increased at the rate it should, and tax cuts were given to the middle class instead of the rich misers who lobby congress for deregulation, I am almost certain we would not be in this mess.

The middle class is the backbone of the economy and we need a serious adjustment. We have been duped into believing that businessmen would make us all rich. This economic collapse was controlled by the bankers in order to consolidate the banks (monopoly) leading us down the road of tyranny. A vote for a republican is a vote for less regulation and loopholes that allow the rich to exploit the middle class, and a vote for that is a vote to screw yourself, just admit it.