08 October 2012

Holy Shit: Romney Catches Up to Obama!

The latest polls indicate Romney pulling even with Obama as a result of the debate, I mean the October Surprise, turn-around lie-fest. Strange, very strange, that the mainstream media does not brand Romney as a liar, with 27 different lies in 45 minutes.

Maybe Biden can stop the momentum-shift to Romney this Thursday.  

But time to get passports in order and arrangements made to move to Venezuela or Brazil.  Both countries have strong socialist/Communist leanings that are taking the countries back from the super rich landowners, just the opposite of what is happening in the USA where wealth is once again accumulating at the top.

You see, the wealthy don't spend as much of their income as the middle class or poor, and with wealth and income accumulated at the top, there is not enough middle class consumption now to sustain the economy.  This is a structural, permanent change in the underlying economy as opposed to the normal five year, secular business cycle.  In other words, it won't get better unless wealth and income are once again distributed downwards to the people as a whole through progressive taxation.

And, when you cut the taxes on millionaires by 20% as Romney wants to do, causing even more wealth to accumulate at the top, things just get worse, especially as they also want to dismantle Medicaid, Medicare and Social Security.  

Why anyone who makes under $150,000 a year would vote Republican is a mystery to me except  that they are economically UNDEREDUCATED, don't want women to have any reproductive rights, don't give a shit about children's educations, want to pump an additional 2 trillion into the military even after we get out of Iraq and Afghanistan, and hate gay rights of any kind.

The Republicans try to make their case by saying small businesses create jobs, and if they have less taxes, they'll be able to hire more people.  Well, they can't hire more people to make things, build homes, renovate homes or buy cars unless somebody is buying their products through middle class demand for cars, TVs, and new homes.

You don't hire more people at your business if your store is empty of customers.  It is demand that creates jobs, and there is no demand without middle class incomes or easy credit.

What is happening is that "small businesses," and large alike, are holding onto the money they made through tax cuts until demand for their products increases.  It is increasing, but very, very slowly.  Tax cuts don't create jobs, increasing demand creates jobs, and that means more money in the hands of the middle class and poor who spend 100% of their income instead of 50-60% as the very rich, who put the rest of their income into stocks, other equities, gold and Wall Street, which are just wealth creating casinos for sharks.  

But you see, money going into stocks really does not help the companies at all because they do not get the new money.  They only get money from the public during new offerings of stock.  The money does not go to the businesses, it goes to investors who pay a much lower capital gains tax.

The best place for money to go is the US government, because like poor people, they spend 100% of their income (revenue), pumping money back into the economy, funding salaries for teachers, public safety workers, medicare, social security, and infrastructure repair as FDR did during the depression.




  1. Great summary Ed, very well written and for someone like me who doesn't keep up with what's going on, very informative.


  2. Very interesting Ed. A few points:
    Apparently the poor have done much better in Venezuela under Chavez, and there is an elite that is also doing very well, but the middle class is suffering a lot, with a lot of really bad crime and violence. Brazil I don't know about, but the Amazon forest is disappearing quickly.

    Re the way the Republicans get support from people who would 'logically' support Democrats: Jonathan Haidt's book 'The Righteous Mind' is very interesting on this.