Situational Keynesianism Redux
The common argument you hear from the red state working poor and middle class on Taxes is that if you raise them during economic downturns you kill off chances of recovery. While it’s true to an extent if you are talking about taxes on new industries, or the middle class, or the working poor, the situation changes when you talk about the uber rich in this century.
Conventional wisdom says the ubers create more industry, wealth, etc. by investing their money in companies. In most times conventional wisdom is right about that, but not now, not in these times of the new Gilded Age. Right now the ubers are hoarding their wealth, they are on the sidelines of both the bond markets and the stock markets. They are out of commodities, and what money they do have invested is in real estate, their yachts, rich boy toys, and hedge funds.
The professional nihilist hedge fund managers are busy program short selling any industry in the US that makes it back up to its knees, and they are killing any new industry and new investment the same way.
Their job is to suck what little worth you have in your retirement or 401K away, they are skimming from the top and sending the billions to the Cayman Islands.
I’m pro capitalist, but I’m beginning to think it’s past time for Bilbo to slay Smaug and disperse some of that hoard.
Now, it’s fair to say this if you subscribe to Keynesian economics. It’s usually considered contractionary to raise taxes in a downturn. On the other hand, if you are simply proposing to tax a bunch of rich people at the high end who are sitting on huge piles of cash so that you can use it to stimulate the economy, then probably not so much. (And you could also say that using this same money that’s just sitting around anyway to pay down the deficit is no harm no foul on the current economy. It doesn’t make a lot of sense, but nothing much makes sense right now). But no matter how you slice it, if you subscribe to the belief that you can never raise taxes during a recession because it will be contractionary, you can’t also say that government spending in a downturn is counterproductive. Both of those ideas are operating on the same principle. But then, conservatives like Dan Lundgren don’t believe in raising taxes no matter what the circumstances and are using this latest justification in the most hypocritical way possible. That’s just how they roll.