Saturday, June 18, 2011
Former labor secretary Robert Reich gives us the big picture about the economy in less than two minutes, 15 seconds. He's a good cartoonist, too. Reich outlines his main points:
1. The economy doubles since 1980, but most people's wages are flat.
2. Almost all the gains have gone to the super rich.
3. The money has given the super rich expanded political power, especially to lower their tax rates.
4. Lower taxes, especially for the wealthy, mean decreased revenue–which, in turn, means huge budget deficits and cuts in public services, health care, infrastructure and the safety net.
5. The middle class, instead of protesting these trends, turns on each other, fighting for the remaining scraps.
6. The middle class no longer has the purchasing power to get the economy growing, which results in high unemployment and a weak recovery. A strong middle class, however, is the key to economic prosperity.
Despite all this, Pawlenty, Ryan and their Republican cohorts call for even greater tax cuts for the wealthy. Their "trickle down" economic perspective is completely bankrupt.