UPDATE: Reaganomics Was Crazy – Robert Johnson on The Real News
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AMERICANS MADE DEBT SLAVES BY FINANCIAL SCAMMERS!
AMERICANS MADE DEBT SLAVES BY FINANCIAL SCAMMERS!
Rob Johnson = Idea that cutting taxes massively = Leads to growth in revenue with lower deficit = SILLY LIES – June 2014 = President and Director of the Economic Policy Initiative at the Franklin and Eleanor Roosevelt Institute = Discusses the role of finance in the world today.
Martin Luther King talked at my jam-packed high school = A very passionate, powerful individual. At MIT for a technical discipline I had minors in music and creative writing, and I studied the writings of Martin Luther King for four semesters.
Questions of class struggle + very critical of the way the whole political economic system is working. I started in engineering, and then added economics as a second degree. Math works good in electrical engineering, but doesn’t work quite so well on time-series data on labor markets. So I’m thinking, these quantitative tools are interesting. I had a certain facility with mathematics and statistics, but they don’t seem like they perform as well in the social sciences like they do in the natural sciences.
Detroit’s a cauldron of tension, bargaining, unrest, you know, putting out the fires of social tension. = Rambling sociological turmoil = NOT equilibrium so Marx seems reasonable to me. McCarthyism was irrelevant at that time = Ralph Nader said effect of the Cold War on your thinking and action was intimidating = Blocked us from looking at systemic solutions.
Lorie Tarshis = student of John Maynard Keynes = Tarshis set an example in that kind of pre-McCarthy era of what can happen to a scholar.
PhD at Princeton = a very, very mathematical department = game theory
Disertation = Implications of the Gramm-Rudman-Hollings legislation = about reducing the budget deficits in the aftermath of the Reagan tax cuts, called Kemp-Roth Tax Cuts. And that tax cut had led to a very big jump in interest rates adjusted for inflation, a big jump in the dollar, started the rise in the dollar, really started the–or what you might call accelerated the hollowing out of the manufacturing sector in the Midwest. And I was looking at the implications of putting, how you say, those deficits back onto a smaller trajectory over time.
I thought Reagan was nostalgic about an America that never was but certainly wasn’t going to be. So I didn’t have a strong– = Policies were crazy. = H. W. Bush called “voodoo economics” = Idea you cut taxes massively and this leads to a growth in revenue and close the deficit because the responsiveness of the supply side would be so vibrant = Kind of silly = economics was fiction. = A political economic argument that powerful, wealthy people that had backed Reagan wanted their taxes lower. And on the other side, people like David Stockman, who I considered to be ideologically quite pure at the time, in other words a public servant, not somebody’s agent for power, found out that he couldn’t cut the defense budget like he would cut the civilian budget to close the deficits. He was trying to reduce the size of government, almost a libertarian action. He found out that power reared its head on side of the Pentagon, and power reared its head on the side of cutting taxes for particularly the most well-off.
FINANCE OUT OF CONTROL = DEPRESSIONS
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FINAL NAIL IN THE SUPPLY SIDE TRICKLE DOWN JOB CREATOR LIES
ALTERNATIVE = Increasing demand by increasing Income of poor = Good Thing + Increases MONEY’S CIRCULATION (INSTANTLY SPENT ON SURVIVAL) AND LARGE MULTIPLIER EFFECT.
TRICKLE DOWN BY RICH WAS A JOKE BY WILL ROGERS (1930s) AND THEN LAFFER-FRIEDMAN (1980s under Reagan-Thatcher) MADE IT A JOKE ON THE AMERICAN AND UK PEOPLE = A REAL LAFFER LIE! = AGAINST BROAD STIMULUS directed across Entire Economy, NOT just the RICH.
Horse and sparrow theory = 19th century theory = Trickle-down LIES = Loot-and-Plunder for THE 425 BILLIONAIRES = “the rich pissing on the poor”
GOP STOCKPILE OF ECONOMIC LIES TO TRANSFER WEALTH TO RICH:
Trickle-Down LIE
DON’T HURT JOB CREATORS
A rising tide lifts all boats
Laffer curve
Supply-side economics
GOP SUPPLY SIDE Trickle-down LIES = REAGAN + THATCHER LIES TO TRANSFER WEALTH TO MULTINATIONAL $BILLIONAIRES = NO TAX ON RICH AND THEY PROMISE TO CREATE JOBS FOR THE PEOPLE = SLAVES IN ASIA = MlLTON FRIEDMAN CHICAGO SCHOOL LAFFER FRAUD ON AMERICANS
Tax breaks + Welfare to MULTINATIONALS and $BILLIONAIRES = Savings (BIGGER PILES OF MONEY FOR 425 $BILLIONAIRES) + INNOVATION (NEW SCAMS BY RICH TO ROB THE MASSES) some how Benefits poor by improving the economy = ACTUALLY A LIE FOR EXPLOITATION OF THE MASSES = Attributed to Will Rogers during Great Depression = that “money was all appropriated for the top in hopes that it would trickle down to the needy.” = A pejorative
$Billionaires = Mc DUCK accumulating PILES of Capital $$$ in a OFFSHORE WAREHOUSE TO DODGE US TAXES = FREEDOM to MAXIMIZE LOOTING to accumulate MOUNTAINS of WEALTH = Attempt of some men to gain at the expense of others by means of looting and plundering. = Loot-and-Plunder theory.
“Trickle-down economics” = “Reaganomics” = “Supply-Side” = David Stockman who later rejected it + FRIEDMAN + LAFFER = Supply-side was another Reagan MARKETING LINE
Thomas Sowell = claims money invested in new business ventures is first paid out to employees, suppliers, and contractors. = Only later, if the business is profitable, does money return to the business owners = Only later in the absence of a profit motive will there be hiring. = MAYBE A TRICKLE WILL HAPPEN – UNLESS SLAVE LABOR IS AVAILABLE (ASIA + AFRICA + ….) or NO RISK FED RESERVE 0% LOOT LEVERAGED IN FINANCIAL GAMBLING IS AVAILABLE TO LOOT THE MASSES.
Trickle down = Mainly political Marketing for wealth Transfer to the MULTINATIONAL BILLIONAIRES = Like Supply Side Marketing
SAVING IN OFFSHORE STOCKPILES = NO VALUE TO ECONOMY = ZERO MULTIPLIER VALUE = Studies found marginal propensity to save = RICH OPTION
John Kenneth Galbraith = “trickle-down economics” FAILED in 1890s = “horse and sparrow theory” = “Stockman has said that supply-side economics was merely a cover for the trickle-down approach to economic policy” = ‘If you feed the horse enough oats, some will pass through to the road for the sparrows.’ = Partly to blame for the Panic of 1896.
Keynesian economics = Say tax rate cuts for RICH directly targets LOW income Americans = NOT STIMULATIVE.
Keynesians = Advocate BROAD STIMULUS directed across Entire Economy, NOT just the RICH.
1992 Presidential Election = Ross Perot called “trickle-down” political voodoo.
2012 Study by Tax Justice Network = Wealth for super-rich = NO trickle to improve Economy = Amass Wealth in tax havens = Negative effect on USA Economy
Matthew Effect = Theory explaining wealth condensation in the hands of rich
1896 Dem Presidential candidate William Jennings Bryan referenced trickle-down theory in his famous “Cross of Gold” speech: = Two ideas of government = Legislate to make the well-to-do prosperous will leak through on those below. + Legislate to make the masses prosperous their prosperity will find its way up to every class that rests upon it.
1944 = First known use of trickle-down term
1954 = First known use of trickle-down theory
“Republicans simply don’t know how to manage the economy. They’re so busy operating the trickle-down theory, giving the richest corporations the biggest break, that the whole thing goes to hell in a handbasket.”
— President LBJ
REAGAN VOODOO = Maximize National Wealth held by RICH = NO RELIEF of poverty.
REAL WEALTH = MANUFACTURING AND EXPORT = NOT FAKED GAMBLING
REAL WEALTH (NOT FAKED GAMBLING WEALTH) = Increased Production Manufacturing and Improved Infrastructure = Depends on Creative and Innovative EDUCATED Minds
USA = Let infrastructure decay to 3rd world levels = Water + Sewer + Roads + Bridges + FREE INTERNET in all AREAS = 10s of MILLIONS OF JOBS = GOV Spending
WALL STREET = EXPLOITS SLAVE LABOR = SHIPPED OUT ALMOST 6O,OOO FACTORIES + 12,OOO,OOO+ JOBS = NEARLY ENDED NON-MILITARY MANUFACTURING IN AMERICA
Economic disparity = EXPLOITATIVE SCAM + LOSS OF Production = Stripped wealth from working class.
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