About those job killing tax cuts (you read it correctly) the Republicans want so badly: Here’s how it works, you give two massive tax cuts that unequally favor the rich. That’s all it takes. Consumption will drop, it’s guaranteed. For a while easy credit and an extraordinary housing bubble will prop up consumption, but will worsen the ultimate result and lead to an even bigger drop in consumption. Falling consumption means unused capacity, which means there is no reason to expand (invest). The corporations that have lots of cash on hand will, I think, ultimately spend it on overseas expansion and mergers.
http://www.offthechartsblog.org/inequality-and-the-high-end-bush-tax-cuts/
The Republican Policy Committee wants to make the tax cuts permanent and pay for them in some vague way by cutting programs within the committee that funds Social Security and Medicare. When Doc Hastings warns about Social Security insolvency, you should fear where he would take us.
Great post. Provide more details next time.
Thanks,
Sid