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OpEdNews Op Eds    H2'ed 11/17/19

Warren doesn't just frighten billionaires -- she scares the whole establishment

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From The Guardian

No wonder the wealth tax turns the Gray Lady white as a sheet: it will help the needy and its author is a good bet for president

Billionaires fight back about Elizabeth Warren's wealth tax
Billionaires fight back about Elizabeth Warren's wealth tax
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On Thursday, the New York Times reported on a study showing that Elizabeth Warren's proposed wealth tax (and presumably Bernie Sanders' even more ambitious version) would reduce economic growth by nearly 0.2% a year, over the course of a decade.

Under the headline "Warren Wealth Tax Could Slow the Economy, Early Analysis Finds," the Times trumpeted the analysis, from the Wharton School of the University of Pennsylvania, as "the first attempt by an independent budget group to forecast the economic effects" of a centerpiece of the Warren and Sanders campaigns.

It sounded like a game-changer. The super rich obviously don't like a wealth tax, but if it also slows the economy, it could harm everyone.

But wait. In order to arrive at their conclusion, the authors of the study make two bizarre leaps of economic logic. They assume, first, that wealthy Americans would save and invest less in order to avoid accumulating wealth that would be subject to the tax, and that this drop in investment would retard economic growth.

Baloney. If we've learned anything over the last 40 years it's that the savings and investments of wealthy Americans do not necessarily trickle down in ways that grow the economy or benefit most Americans.

The investments of the wealthy are parked all over the world in everything from exotic tax shelters to real estate and works of art. Rather than generate social benefits, they are more likely to keep legions of investment bankers, money managers, wealth advisers and tax lawyers busily employed, gaming the system.

The study also assumes the revenue raised by a wealth tax will go toward reducing the federal debt. It totally disregards what the wealth tax would finance, such as Warren's proposals for universal childcare, increased education funding, student loan forgiveness, green manufacturing and infrastructure.

This is no minor oversight. Warren has repeatedly argued that taxing the super rich is the fairest and most efficient way to pay for these critical needs.

Such spending, not incidentally, would spur growth. Enabling more parents to work, young people to become better educated, green technologies to take root, more access to healthcare, and the nation's infrastructure to be upgraded, would improve productivity.

How can an analysis of the wealth tax focus only on its trickle-down effects and not consider these crucial bottom-up consequences? Just as peculiarly, why would the New York Times prominently report this one-sided study?

 

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Robert Reich, former U.S. Secretary of Labor and Professor of Public Policy at the University of California at Berkeley, has a new film, "Inequality for All," to be released September 27. He blogs at www.robertreich.org.

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7 people are discussing this page, with 19 comments


Phat Khat

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Warren, Warren, Warren. If the PTB were REALLY afraid of her, she would be disappeared like Bernie. She's nothing but a wedge to split the progressive vote, and should she get the nomination - extremely likely - she will pivot to a Clintonian/Obamian stance. She is a fake progressive. And YOU, Robert Reich, should see through her. Unless, of course, you have also pivoted away from Bernie.

Submitted on Sunday, Nov 17, 2019 at 11:21:06 PM

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nelswight

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Nice to get a squawk from you, Obese Feline Lover.

Submitted on Monday, Nov 18, 2019 at 2:18:48 PM

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nelswight

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Happy Thanksgiving!

Submitted on Monday, Nov 18, 2019 at 2:21:54 PM

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Dennis Kaiser

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Elizabeth Warren should scare everyone as even she doesn't know who she is as she attempts to be whatever she thinks those she is talking to want. She is simply attempting to get elected and will "wing it" once in office. Her primary role as a Senator has been to come out strong on any issue that she thinks will gain approval from the average citizen, criticism of Wall Street and the financial system being one. Result: Nothing happens and Warren slithers back into silence until the next issue arises.

This primary campaign is exposing her as the chameleon she is as she came out as a Bernie duplicate in order to ride his coattails for the popularity it would bring. As time rolls on it is becoming obvious she is no Sanders, in fact, she may be closer to Hillary who she endorsed before the convention in 2016.

In short, it would be wise to simply allow Warren to go back to the Senate and let her realize she is not a Progressive, but nothing more than a Corporatist politician seeking only personal gain.

Submitted on Monday, Nov 18, 2019 at 10:52:09 AM

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Brenda Schouten-Beckett

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Reply to Dennis Kaiser:   New Content

Thank you for saying all of this for me. I am unable to write anything about Elizabeth Warren without resorting to lalochesia. She is certainly a clone of her mentor Hillary Clinton and a disgusting cardboard cutout of a human being. I am just revolted that a person like Robert Reich would be stumnping for her. I can no longer trust anything he says.

On the lighter side, her papaw had high cheekbones.

Submitted on Tuesday, Nov 19, 2019 at 4:48:24 AM

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Dennis Kaiser

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Don't forget Bobby is an old friend of Bill Clinton and classmates in the Rhodes Scholar indoctrination program.

Submitted on Tuesday, Nov 19, 2019 at 10:46:44 AM

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For Reich to be cheerleading her is not a good sign.

Submitted on Monday, Nov 18, 2019 at 12:48:04 PM

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Dennis Kaiser

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Reply to David William Pear:   New Content

It is telling as to where Warren stands and that is not where she is trying to have the people believe.



Submitted on Monday, Nov 18, 2019 at 1:26:50 PM

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nelswight

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Reply to David William Pear:   New Content

I think Reich intends well but somehow he has got stuck in "old Democratic"

cogitation.

Submitted on Monday, Nov 18, 2019 at 1:58:36 PM

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Ronnie Roberts

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I doubt that, Nels. I'm not sure he's really doing any "cogitation". It seems to me that he is just a gatekeeper for the Democratic party and is more than likely paid to keep beating that particular drum whether they are right or wrong on the issues. I think we've discussed this before, but I'll say it again, I can't be bothered reading his articles. They are so predictable.

Submitted on Monday, Nov 18, 2019 at 3:03:06 PM

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nelswight

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I didn't want to think that but most likely you are correct, Ronnie. I've met

him, talked with him some, but it still seems he hangs on to Clinton where he

was Sec Labor, along with the Old Party. Those old long-time party followers

Like, possibly Rob, are hard to shake loose.

Submitted on Tuesday, Nov 19, 2019 at 12:38:08 AM

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Thanks, Nels. Sorry to be so blunt about it. I guess I've just grown cynical at this point. I don't trust hardly anybody anymore. I appreciate the fact that you still try to give most of them the benefit of the doubt. We still need your perspective. I think you're the one who genuinely intends well.

Submitted on Tuesday, Nov 19, 2019 at 3:15:45 AM

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Brenda Schouten-Beckett

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Thank you for what you said. I have become bitter and cynical about the moribund Democratic Party and it's good to hear another reasonable person voice the same disillusion I am experiencing.


The DNC is sure to nominate this grandstanding, lying clone of Hillary Clinton and we are assured of a second term for Orange Mussolini. That is one bitter pill.

Submitted on Tuesday, Nov 19, 2019 at 4:52:55 AM

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Brenda, I just watched this video of Jimmy Dore and Aaron Mate.

It pretty-well addresses your frustration and disdain for the Democrats.

Check it out. It will make you laugh, but that helps to relieve the tension that we all feel. And you won't feel like you're all alone feeling what you do.

tu.be/ufduP0bLfAY

Submitted on Tuesday, Nov 19, 2019 at 3:27:51 PM

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Thank you for this great link. I've been a huge fan of Jimmy Dore for several years and have recently "discovered" Aaron Mate (also a major dude). It was good to see them together.

Submitted on Tuesday, Nov 19, 2019 at 9:15:41 PM

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She doesn't scare them half as much as Bernie Sanders.

Submitted on Monday, Nov 18, 2019 at 10:54:29 PM

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Even Bernie doesn't scare them because they know just as soon as Bernie sheep dogs all those idealistic young people back into the stinking maw of the Democratic Party, they will shaft him again, put in another Wall Street wh*re and insure that second term for Orange Mussolini. We are watching a replay of 2016 unfold before our eyes.

Submitted on Tuesday, Nov 19, 2019 at 4:55:20 AM

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Brenda Schouten-Beckett

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Robert Reich, how dare you?

Submitted on Tuesday, Nov 19, 2019 at 4:55:50 AM

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nelswight

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And Paul Krugman, too, 'nother bird in the same nest.

Submitted on Tuesday, Nov 19, 2019 at 2:50:03 PM

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