As the rest of us are recovering from the outrageous Senate healthcare bill released this week, Trump and the Republican Party are having closed door meetings to shape their “reforms” to the Federal tax system. Get ready for a resurgence of rhetoric about how enriching the rich will generate a surge in economic activity that will raise all boats. There will be lots of talk about “pro-growth tax reforms”. This is the return of 1980s trickle-down economics. The basic notion is that if you put more money in the pockets of the rich and corporations they will invest in creating new businesses and jobs. Thus the money trickles down to the bottom. Trump and his Republican Party allies have already claimed that this will increase the growth rate of the economy from its recent typical of 1.5% to 2% annual growth to over 3%. The difference of this one percent has enormous implications. At 2% growth the economy doubles in 36 years. At 3% growth it doubles in only 24 years.
Trickle-Down – The Reality
BUT, no economist, banker, or corporate chieftain not on the payroll of Trump and the Republicans believes this will happen. Leaving aside all sorts of analysis about demographics (aging population), technology, and global competition, history and current events provides a fairly comprehensive rebuke to these trickle down cover stories for the Republican give backs to the rich and corporations. Trickle-down economics was invented in the early 1980’s to explain the wisdom of Ronald Reagan’s tax “reforms”. Much space was taken up with displays of Prof. Arthur Laffer’s demand curves that were passed off as proof from the academy that enriching the rich and corporations would unleash a new wave of economic activity. Nothing like that happened in the 1980s. Nothing like that happened in the first decade of this century after Bush II’s big tax cuts. And most recently in Kansas, the Republican dominated State legislature had to override the governor’s veto of tax increases after a 5 year experiment there with trickle-down drove the state nearly to bankruptcy.
Nevertheless, get ready for another round of bull shit Republican propaganda about “pro-growth tax policies”, unleashing the over-regulated, over-taxed job creators, and a great surge in economic growth. The forces of free-market capitalism just need to be freed from the shackles of government. You will here all of this and more. The media will continue to do its job of repeating all of this. You need to be clear that the vicious Republican Party is at work for their masters among the rich and corporations. There job is making sure that the 40 year stagnation in incomes for the 80% will not change course and the flood of wealth will continue to those at the top.
With today’s release of the Senate’s version of the Republican healthcare bill we see clearly that the Republican Party is a vicious, immoral pack of angry white people – mostly men it would appear from the faces representing the party in the media (see below). No matter how you slice up this legislation it says clearly that Republicans want to punish poor and middle class people for their slovenly, lazy, unhealthy lifestyles, and reward the wealthy with a large tax holiday. The healthcare industry gets to continue charging outrageously high prices while providing last in the pack healthcare outcomes.
Trump is a side-show
The problem is the Republican Party bought and sold by the wealthy and corporations. The Republicans are busy destroying families through their attacks on healthcare, education, family income, and government protections. The Republicans are busy mouthing talk about job creation while doing nothing to create jobs, just more rhetoric about job creators and government regulations. The Republicans are busy doing nothing to assure that a person working a full-time job can achieve a livable standard of living. The Republicans are busy destroying the environment through their actions internationally and at the EPA. The Republicans are busy destroying women’s lives through their attacks on reproductive rights and women’s healthcare. The Republicans are busy encouraging white supremacists and racists in general through their endless pandering about immigration and Muslims. The Republicans are busy destroying the very fabric of our society by completely failing to maintain our infrastructure and decrying any action by government at any level to invest in our common future and protect us from the attacks by corporations on our health and well-being.
Meanwhile the Democratic Party is still dominated by the same old people and the same old rhetoric. They need to declare war on the ruling class and its Republican Party. There should be no more talk about pleasant bipartisan legislative efforts.
Forget about Trump!
We need to defeat the Republican Party and take back the country from the wealthy and corporations.
Trump’s recent announcement that he is leaving the Paris Climate Accord and his ongoing gutting of the Environmental Protection Agency should come as no surprise given his billionaire class Cabinet and advisers. Now it is clear that the Koch brothers have been at work. They are notorious for their Libertarianism, election buying and ownership of huge coal mining corporations.
Today (6/5/2017) on the New Yorker magazine website Jane Mayer wrote in her article, “IN THE WITHDRAWAL FROM THE PARIS CLIMATE AGREEMENT, THE KOCH BROTHERS’ CAMPAIGN BECOMES OVERT” of the now publicly visible campaign by the Koch brothers and many others to make their decade’s long campaign to deny climate change bear new fruit in public policy. More evidence that the plutocrats are now so secure in their control over our politics and the government that they can come out of the shadows and rule directly through Trump.
BTW – Jane Mayer spent 5 years investigating big money and particularly the Koch brothers. The resulting book almost reads like a cloak and dagger mystery excepting for the very real people and money at play: DARK MONEY: The Hidden History of the Billionaires Behind the Rise of the Radical Right by Jane Mayer (Doubleday NY 2016) – reviewed in the NYTimes 1/19/2016 by Alan Ehrenhalt.
The state of Trump’s mind has been a matter of continuous discussion ever since he came on the scene as a presidential candidate. Mental health professionals have weighed in despite their professions rules against doing so. More recently in an op-ed piece David Brooks posed the idea that we are dealing with a child, “When the World Is Led by a Child“. Some demurred at what they felt was a demeaning comparison with the actual positive characteristics of children. Others offer more political explanations for Trump’s behavior.
Perhaps He Is Just Getting Old – Dementia Is Underway
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Attorney General Sessions clearly knows no history, even that of his own lifetime. He is just another petty, cyclical political hack thrust into a prominent position.
Nixon’s War on Drugs which Sessions is now re-intensifying began as a cynical campaign tactic. As described by John Erhlichman, Nixon’s domestic policy adviser:
The Nixon campaign in 1968, and the Nixon White House after that, had two enemies: the antiwar left and black people. You understand what I’m saying? We knew we couldn’t make it illegal to be either against the war or black, but by getting the public to associate the hippies with marijuana and blacks with heroin, and then criminalizing both heavily, we could disrupt those communities. We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did.”
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There is much ongoing discussion about steps needed to turn the enormous one day action of the global Women’s March in to a sustained movement to achieve better outcomes for the vast majority of Americans. To focus on just one strategic element, the movement needs to move beyond identity politics to embrace class warfare. The rich and corporations have carried out a sustained and successful class war for more than 40 years. They control the government and the economy. Donald Trump is just a symptom of the underlying issues. We need to break this hammerlock and shift the rules of politics and the economy back towards us, the 90% who are living off the remainders, the scraps from their feast.
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The Trump election debacle demonstrates the bankruptcy of the current leadership of the Democratic Party. Faced with a foe who has engaged in serial bankruptcy as a business strategy, is a notorious know-nothing bully with a very sensitive ego, and is best known as the red-faced guy on reality TV who says “You’re fired”, they could not come up with a candidate and story to retain their core voters in the old rust-belt states.
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– The Morning After –
The election of Trump and the continued Republican control of both Congress and Senate guarantee that the rich will continue to get richer at the expense of the shrinking middle class and further aggravate conditions for the poor. Trickle down economics and tax subsidies will flow for the rich and corporations. The financial sector will buy its way out of the weak regulations of Dodd/Frank and lurch towards new adventures in gambling; a financial disaster will once again require the socialization of their risk at taxpayer expense.
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