Listening
Gold Member
- Aug 27, 2011
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Romney is offering supply side economics - i.e., give the wealthy tax cuts and the middle class consumer austerity - which made sense 30 years ago, but makes no sense now.
The problem is not inflation, it's demand. Romney's policies will choke demand.
Business is sitting on historic levels of cash. Giving them more cash in the form of tax cuts won't change the real problem: consumers are not buying enough to soak up the inventory already in existence. Business won't start adding jobs until consumers start to spend vigorously. The last time we were in this position was during the Great Depression. The only thing powerful enough to bring us out of it was the largest government spending program in history - war manufacturing for WWII. The government put the nation to work manufacturing the products needed for war. . . and then consumers started spending (because they had jobs), and then the capitalists had to add even more jobs to go after all the new spending money created by government jobs.
And after our victorious veterans came home, a Republican president put them to work building the nations suburbs and interstate. (And guess what? - business made major profits on the infrastructure government created. Commerce depends on roads, bridges, water treatment plants, energy grids, etc. The fucking Southwest would not exist but for the Hoover Dam)
Government was the spender and job create of last resort - and it lead to the greatest economic expansion in history.
(When the problem is demand, supply side economics does not work. Romney is going to jump in the ditch and start digging)
If business needs them, they have piles of cash (according to you) to build them.
Crying about failed Keynsian policies is useless.