The US of course is the big kahuna of spend and don't tax , which has brought them near the abyss.
Well it looks like they may have a deal, but a nasty one, which ends up hitting the middle class while CUTTING, yes cutting taxes for the wealthy and the corporations.
Crazy I know, and under a Democratic President who has been called 'socialist' by his right-wing opponents (of course anyone who suggests free school milk for poor kids is a socialist to those Atilla-the-huns).
Now this is just me but this is exactly what NOT to do. When people are underemployed or unemployed they spend less. Or is there something I'm missing? Krugman put it best in his blog today [referring to Eurozone austerity plans but the crux applies to Canada too]:
ReplyDelete"OK, so we’re going to demand harsh austerity in the debt-crisis countries; and meanwhile, we’re also going to have austerity in the non-debt-crisis countries.
Plus, the ECB is raising rates.
So demand will be depressed in both crisis and non-crisis economies; this will lead to a vigorous recovery through … what?"
This is the result of unregulated markets. Greenspan said that derivatives made things MORE stable. Well he was wrong to the tune of $120 Billion of tax-payer's money to bail-out AIG.
ReplyDeleteWhen everything is going Ok, no one cares, then when it hits the fan- the first thing that HAS to be saved is the big money. That's why big Wall Street banks were bailed out, why rich Goldman Sach's got $9 Billion in 2008/9 and why deposit's for money markets were raised to $500K.
Now there is no money left. So what can we do- tax the big money more- nope. Cut the little guy- bingo.