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Add to My Group(s)
By Bill Burkett (about the author)
Become a Fan -- Page 2 of 3 page(s)
The first casualty of this effort became the double-edged sword of credit cards and ready "" but expensive credit; secondly, usary rates and deregulation loosened the binds and restrictions on abuse within the financial marketplace and all banks became loan sharks.
Within three more iterations we finally came to the point that in order to pay car loans with seven year maturity consumers had to cash in their home equity. In fear of the impending doom, banks bought their way through influence and campaign contributions to change the bankruptcy laws to create a new social trend in America "" economic imprisonment.
Add the policy of arrogance of America. The vision of spreading democracy world-wide has left America spread too thin; since democracy, as it was envisioned, was attempted to be spread alone.
So the tax cuts, wrapped in patriotic appeal became a tool to enrich investment in Wall Street, business, and internationalism (due to the imbalance of imports and exports) rather than to bouy individuals from the effects of recessionary trends.
At each downturn of the economy, the situation worsened as a result of denial of the basic facts of economic fundamentals and discipline.
Yes, the truth was that each tax cut was more about Wall Street than Main Street and for sure more focused on Wall Street than your home address. That is the weakest link.
Enter Tax Rebate Policy
Just last week, Bush announced that the Congressional Democrats had finally pulled his chain sufficiently to institute $100+ billion in tax rebates to drive counter-recession policy. The World markets have just responded correctly with record declines over the past 48 hours, because again, Bush and the Money party in Washington just don't get it.
The rebate program is again meant to reach business and save Wall Street "" another late, anemic attempt to save those most in-efficient at the expense of those consumers.
The tax rebates are again about saving business, not you.
Enter the Record Announcement on Reduction of the Federal Funds Rate
The Fed just announced a record 75 basis point decline in the federal funds rate to stave off what is expected to be record declines on the stock markets this morning.
This rate actually has even less to do with business and more to do with saving the banking institution. Again, the solution is becoming more separated from the true solution point "" the family unit economy. Once again, policy is so 180 degrees wrong that it exacerbates the problem and further exposes the weakest link of Bush economic policy.
We have a critically weak dollar. That is a symptom of long-term poor policy.
We have record deficits in the balance of trade that have been in existence since and widened dramatically since supply-side economics were introduced. Let's base it correctly. Supply-side economics have brought the American economy out of balance for two generations. We must balance the economic recovery on DEMAND AND PRODUCTION based economics, where jobs equal products and services; where economic value is far richer than retailism.
The weakest link of the Bush policy is that the CONSUMER is a slave to business production and to importation of cheap foreign goods.
Become a Fan -- Page 2 of 3 page(s)
Within three more iterations we finally came to the point that in order to pay car loans with seven year maturity consumers had to cash in their home equity. In fear of the impending doom, banks bought their way through influence and campaign contributions to change the bankruptcy laws to create a new social trend in America "" economic imprisonment.
Add the policy of arrogance of America. The vision of spreading democracy world-wide has left America spread too thin; since democracy, as it was envisioned, was attempted to be spread alone.
So the tax cuts, wrapped in patriotic appeal became a tool to enrich investment in Wall Street, business, and internationalism (due to the imbalance of imports and exports) rather than to bouy individuals from the effects of recessionary trends.
At each downturn of the economy, the situation worsened as a result of denial of the basic facts of economic fundamentals and discipline.
Yes, the truth was that each tax cut was more about Wall Street than Main Street and for sure more focused on Wall Street than your home address. That is the weakest link.
Enter Tax Rebate Policy
Just last week, Bush announced that the Congressional Democrats had finally pulled his chain sufficiently to institute $100+ billion in tax rebates to drive counter-recession policy. The World markets have just responded correctly with record declines over the past 48 hours, because again, Bush and the Money party in Washington just don't get it.
The rebate program is again meant to reach business and save Wall Street "" another late, anemic attempt to save those most in-efficient at the expense of those consumers.
The tax rebates are again about saving business, not you.
Enter the Record Announcement on Reduction of the Federal Funds Rate
The Fed just announced a record 75 basis point decline in the federal funds rate to stave off what is expected to be record declines on the stock markets this morning.
This rate actually has even less to do with business and more to do with saving the banking institution. Again, the solution is becoming more separated from the true solution point "" the family unit economy. Once again, policy is so 180 degrees wrong that it exacerbates the problem and further exposes the weakest link of Bush economic policy.
We have a critically weak dollar. That is a symptom of long-term poor policy.
We have record deficits in the balance of trade that have been in existence since and widened dramatically since supply-side economics were introduced. Let's base it correctly. Supply-side economics have brought the American economy out of balance for two generations. We must balance the economic recovery on DEMAND AND PRODUCTION based economics, where jobs equal products and services; where economic value is far richer than retailism.
The weakest link of the Bush policy is that the CONSUMER is a slave to business production and to importation of cheap foreign goods.
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