[You’ve probably seen the photograph. It shows Ronald Reagan with a group of his associates in their Armani suits, holding drinks in their hands and doubled over in laughter. The word “Reaganomics” appears below the photo and below that the caption “We told them the wealth would trickle down.”]
Candidate Romney has proposed a tax plan that would continue and even expand the current tax breaks for the infamous 1% and increase taxes on the rest of us. The plan, which is phase two of Reaganomics and the equally infamous “trickle-down” theory, is designed to encourage the wealthy to invest their money and thereby create more jobs for those currently unemployed, thus enabling them to carry the tax burden which the wealthy prefer to transfer to others. In case we didn’t know that this is bogus economics, a recent story reveals that
The 2012 Survey of Affluence and Wealth in America, from American Express Publishing and Harrison Group, finds that One Percenters are hoarding three times as much cash as they were two years ago. Their savings rate soared to 34 percent in the second quarter of 2012, up from 12 percent in 2007.
I couldn’t possibly improve on the careful and detailed analysis my blog-buddy did on the idiocy of Mitt Romney’s tax plan which pleases no one this side of the Tea Party (which may help explain Romney’s recent choice of a running mate). But unless I am mistaken what this means is that the poor will get poorer and the rich will be more careful to protect their already obscene amounts of spare cash. We have already seen the gap between the rich and the poor widen annually since the Reagan presidency as the rich continue to hide behind their tax breaks and subsidies and the poor continue to struggle to put food on the table. The notion that the rich will expand their companies, invest, and create jobs is tissue paper-thin: it is a myth exploded by downsizing and outsourcing — and information like that in the article quoted above. Indeed, there are a number of myths out there in this election year — some coming at us from the right and others coming at us from the left. We must be on guard. But above all, we must think through all the empty promises and vapid bromides to the real truth that lies hidden beneath — if there is any.
Anyone who tells us that he has a “secret plan” to restore health to the economy should be suspect. We should want to know the details; we should demand to know the details. Otherwise we are buying a pig in a poke. And anyone who tells us that the current tax breaks for the wealthy are a good thing, that the very rich should not pay their fair share of the tax burden, is shooting the bull. I have written about the need to rethink our take on taxes, how they do a great deal of good and should not be seen as simply a burden. But however we perceive taxes, we should all be asked to pay them, the rich as well as the not-so-rich.
In the end, the unperceived problem here is that the middle class, on whom this country has come to depend for its economic stability, is rapidly disappearing in the widening gap between the very rich and the growing number of poor. So more than ever before, we need to be aware of the wind-eggs that are afloat, especially in this election year. That is to say, we should read what is printed and listen to what is spoken with a considerable amount of skepticism: the people running for public office are coached to tell us what their marketing experts have told them we want to hear. It’s not about telling us the truth; it’s about getting elected — that’s pretty much all they know how to do.