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Comment on Jude Wanniski: Taxes and a Two-Santa Theory by DDearborn
DDearborn
Comments for Wall Street Pit
Hmmm
The idea that tax cuts for the richest 1% are in reality good for the rest of us is utter nonsense. The fact that the "economy" itself may benefit, at least in the short term, is quite obviously not the same as having the majority of Americans or America as a whole "benefit".
The period in which the other 99% saw their economic fortunes and overall standard of living skyrocket was between 1945 and 1970. Oddly enough, the 1% were being taxed at roughly triple the rates they have today.......Since 1970 when taxes where cut for the 1% the economic fortunes and general standard of living for the other 99% declined. Simply put, whatever economic stimulus that resulted from letting the already rich get even richer has never been enough to overcome the immutable fact that the "economic pie" is finite. Obviously, if one group is getting more of the "pie" everybody else must be getting less.
Now if we did not have the FED stealing our wealth via inflation, the above scenario, which is essentially the notion that a rising tide raises all boats, might have a bit of validity. Sadly the FED has been inflating the dollar at more than twice the official rate since we went of the Gold standard in the early 70's. Therefore, the net effect is that the increases for the rich always rise above inflation, while the increases for the rest of us always falls below inflation. Bottom line here; the rich really are getting richer, and the rest of us really are getting poorer......