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The Romney Recession: How President Mitt Would Squash the Recovery

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Yeah Sure WhatEVs10/02/2012 7:04:06 am PDT

Romney KNOWS that what spurs investment is: 1) a middle class with spending power, 2) tax structure that benefits investment within the US (higher taxes with deductions/lower rates for investment in the US. Other than that, tax breaks on the rich gives them more $$ to stash away and nothing more.

That said, a middle class that cannot spend creates a no-win of even if the rich want to invest in the US, what is it they’re going to invest in? The only driver of any economy (not driven by how many goats you have) is a solid middle class. Any junior economist knows that. 10,000 rich people buying cars (or multiple washing machines for their multiple houses or what have you) is nothing compared to 175,000,000+ people who have buying power.

That’s what I don’t get about GOP ideology of money. If you’re making stuff, every business owner knows that people have to have money to buy that or those goods. Henry Ford knew he couldn’t make a product his own workers couldn’t afford. Sure, if you sell something ONLY for the ultra-wealthy like a $750,000 car, then your margins support selling a few over many. That doesn’t apply to mass produced anything.

WE drive the economy. And until the politicians get their heads out if their respective asses, we’ll continue to have a dragging economy. Austerity gets us nowhere. Imagine if we hadn’t lost almost 1mm public sector jobs what better shape we’d be in right now.