The other standard measure of economic policy success is the increase, or lack thereof, in the Gross Domestic Product. Over the next two decades there was only one year in which the rate of increase in the GDP matched the high tax periods that preceded them. (http://en.wikipedia.org/wiki/File:GDP_growth_1923-2009.jpg). Those rates go lower and lower with each tax cut.
Our public policy dialogue has little basis in fact or rationality. Much of it, even in the academy, is bought and paid for. There is no interest group willing to pay foundations, endow universities, buy radio ads for commentators, who will advocate higher taxes.
But there's lots of money willing to invest in propaganda that calls for lower taxes and claim that they're good for the economy.
So you won't hear calls for higher taxes. You won't find politicians who dare to propose higher taxes.
If the Bush tax cuts are allowed to expire they will, hopefully, work as tax hikes. That will mark the beginning of a real recovery.
If they don't, and there are no other tax increases, expect lingering unemployment, lower wages, increased corporate profits, especially in the fiscal sector which we're already seeing - a short term boom in the stock market, and another crash.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
1
1
1
