Voodoo Economics Returns

Roll us over and do it again!

Our Congress is once again on a break (is there ever a time when this isn’t so?)  They have tried health issues and failed…..they are talking abut some sort of gun regulations…..and since nothing is sticking to the wall then they will go to the ever popular tax reform.

And since the GOP is in control then we will try their fix for the economy…..supply-side solutions.

This solution has not been a answer for 30+ years….hey, why not try it again?

Our president has decided the “voodoo economics” will solve all the ills of our economy….

Billionaire US President Donald Trump wants to reform the US tax system, like others before him. But his plan looks more like tax cuts for America’s wealthiest and some of the world’s biggest corporations.

Although it’s yet to be fleshed out, it’s based on the idea that the cuts will pay for themselves, with the economic growth they generate in years to come. Yet, that’s never happened in the history of US tax cuts.

In economics jargon: this is a classic supply-side response to a demand-side problem. But why help companies and investors if workers are the ones in trouble?

It’s been done before and George HW Bush famously called it “voodoo economics” to discredit the notion that cutting tax rates will increase revenues.

Source: Donald Trump’s ‘voodoo economics’ | USA | Al Jazeera

An IST factoid:  Tax cuts have NEVER paid of themselves!

But you will be asked to buy into the dream anyway…..you cannot drain the swamp and keep the crap in place.

I have written on this subject before and pointed to the fallacy……..

Source: It Is Always Supply Side Economics – In Saner Thought

Source: The Humor That Is Trickle Down Economics – In Saner Thought

Source: Let’s End The Illusion Now! – In Saner Thought

A laughable solution that the population falls for almost every time.

9 thoughts on “Voodoo Economics Returns

  1. Chuq, Congress has to rest up from all hose big luncheons, patting themselves on the back, spending countless hours at press conferences, while evading both the questions and the topics.

    Trump-O-Nomics: Donald has a choice. Follow the Bush 43 agenda–lower taxes on the uber-wealthy, take the nation to two senseless and never-ending wars, and turn the Clinton into a horrendous disaster–The Great Recession. Oh, and along with that, the Unemployment Rate doubled, as the Banking Crisis spread globally!

    Behind Door #2 is the Obama strategy: allow the Bush Tax Cuts to expire, provide modest tax cuts for the middle–or Consumer–class, wrestle fiscal stimulus (government spending) from the GOP Congress, begin to disengage from the two senseless wars, and initiate the on-going Recovery which continues to this day.

    Which would a sane man choose? But, since we’re talking about Donald Trump, it will obviously be to follow the George Bush slope, toward horrific disaster. Get ready for The Great Recession–Phase Two!

  2. It’s another case of repeating the same lines over & over to the stupid goldfish who have long since forgotten the last 30 years of these lines and their consequences.

    And it will still work (as a political selling point, that is). People just keep jumping at the chance to keep a couple more dollars a month of their money, even if it means losing thousands of dollars worth of government services.

      1. The math was obvious to me right from the beginning. Some 20+ years back, my Conservative provincial government gave us all a “big” tax cut because “You know how to spend your money better than government does!” Sound familiar?

        I was earning around the average wage at the time and paying a FAR higher percentage of my income in tax than the average American does. I was dead set against the cut, but was willing to accept the extra cash as a consolation prize. But the before-after difference on my pay-cheque was only about $5 a month! It took me 5 months to save up enough of my “new found wealth” to pay for my favourite band’s new CD! Meanwhile, our Medicare & education system lost tens of millions each in funding. Schools closed. Hospitals closed. And yet the deficit still went up and the economy didn’t even notice the change. I guess 2 CDs a year per-person isn’t enough to trigger an economic boom.

        Unless you make 6 or more digits, tax cuts are utterly meaningless…except as political snake oil to sell to the rubes who just keep falling for it.

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