"Charity is commendable, everyone should be charitable. But Justice aims to create a social order in which, if individuals choose not to be charitable, people still don't go hungry, unschooled or sick without care. Charity depends on the vicissitudes of whim and personal wealth, justice depends on commitment instead of circumstance.
Faith-based charity provides crumbs from the table; faith-based justice offers a place at the table"
~Bill Moyers

Thursday, January 29, 2009

The Republicans are unified... And so are the Lemmings while going over the edge - "Elephants In The Room"

I said it many times before and I'll say it again "I must be dumber than I thought I was", I don't get it; of course, I refer to the Republicans claim that to stimulate the economy we must go with "the true and tried... must give more tax cuts"

While my 'dumber than I thought I was' comment was made tongue-in-cheek, it is true in many areas, however, I'm sure that on this issue, I'm neither dumb nor as gullible as the Republicans take many people to be.

The traditional 'true and tried' method of tax cuts to stimulate the economy has been 'tried', the latests are the past Administration's ones and the only 'true' of it is that it benefits mostly the rich, they don't create jobs and they sink the country as a whole in a deeper economic hole, specially when it comes to Corporate Tax Cuts which are nothing less than Corporate Welfare.

The part that I don't get is how the Republican-following sheeple believe that tripe, I mean, you give money to the corporations for what? To produce more? Yeah, right, they are going to create jobs to produce more and provide more services for the people from whose pockets these tax cuts come out from to buy them? Ha!

I'm nowhere near to knowing how the economy works, but it seems to me that if the consumers have monetary resources, they will purchase products and services, if there is no supply, the demand will compel the companies and corporations to fill that need by increasing production, which in turn will trigger a need for more employees to meet the demand, which in turn will place resources in the employees' pockets adding them to the consumer base, which in turn will increase the demand. which in turn....
By the way, the employees will have to pay taxes.

Simplistic? Of course it is, but according to 'supply and demand', that's how it works, isn't?

It is not that tax cuts do not stimulate the economic activity, they do, albeit modestly, they do, but it does make a big difference who receives them.

No, I'm neither dumb nor gullible on this issue, I'm no economist and do not have the expertise on it to clearly eleborate on this matter, but today I got reinforcement for my beliefs while watching the "Rachel Maddow Show" where she gave information she got from Moody's Economy.com, here is the basic lowdown on "Most Stimulative Spending", in other words, the returns for each dollar spent:

most_stimulative_spending_foodstamps_infraestructure.jpg - 78kb
Food Stamps = $1.73
Infrastructure = $1.59
most_stimulative_spending_taxcuts_corporatetaxcuts.jpg - 65kb
Tax Cuts = $1.03
Corporate Tax Cut = ¢ 0.30

And this is the video where she explains it all and asks pertinent questions, very interesting segment.

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