The truth about Bush and the Economy
Unfortunately, we've had a few months of the Democrats screaming from the rooftops how bad the economy is under the Bush administration. Why is this bad? Because the market is dictated more than anything by consumer confidence. With the Democrats doing everything possible to erode consumer confidence to further their political agenda, they run the risk of creating a self-fulfilling prophesy. Let me elaborate.
Keynsian economic theory stipulates this: In a normal economy, there is a high level of employment, and everyone is spending their earnings as usual. This means there is a circular flow of money in the economy, as my spending becomes part of your earnings, and your spending becomes part of my earnings. But suppose something happens to shake consumer confidence in the economy. (Like some idiots in the Democratic Party doing their level best to shake consumer confidence) Worried consumers may then try to weather the coming economic hardship by saving their money. But because my spending is part of your earnings, my decision to hoard money makes things worse for you. And you, responding to your own difficult times, will start hoarding money too, making things even worse for me. So there's a vicious circle at work here: people hoard money in difficult times, but times become more difficult when people hoard money.
The cure for this, Keynes said, was for the central bank to expand the money supply. By putting more bills in people's hands, consumer confidence would return, people would spend, and the circular flow of money would be reestablished. Just that simple! The other method was for the federal government to put more money back into the economy in the form of tax relief. Holy Cow, the Bush Tax Refund to the rescue! Keynes phrase for this was "Priming the Pump".
So now we are back to Democratic supporters of John Kerry making statements on the economy which are at best, misunderstandings of the facts and at worst, total fabrications to further their own agendas. A report from the nonpartisan Congressional Budget Office has Democratic presidential candidate John Kerry claiming it proves that “Over the last four years, the burden of taxes has shifted from the wealthy to the middle class.” C'mon, you heard him during the debates- He told us the Bush tax refunds were for the "upper 2% of the wage earners in this country", and the poor and working class had to carry the burden. This is one of the Kerry campaigns biggest mantra's!
Now for the facts. Not interpretations, or suppositions, but facts from a non-partisan Congressional study.
A report from the nonpartisan Congressional Budget Office has Democratic presidential candidate John Kerry claiming it proves that “Over the last four years, the burden of taxes has shifted from the wealthy to the middle class.” The report proves that what President Bush said about his tax cuts is true: “Tax relief is for everyone who pays income taxes.”
It’s true for the rich, and it’s true for the not-so-rich. Across 109.4 million tax-paying households — from the wealthiest 1 percent with incomes averaging over $1 million to the lowest-earning 20 percent of people with incomes averaging $14,900 — the report shows that all income classes have seen their income tax rates lowered thanks to Bush’s cuts in 2001, 2002 and 2003. The CBO report shows how 2004 income tax rates have dropped for everyone compared with tax laws in force in 2000.
The report also shows that Bush’s tax cuts have been “progressive” — that is, they have shifted the share of the overall federal income tax burden toward the wealthy and away from lower-income earners. Without the Bush tax cuts, the highest-earning 20 percent of households this year would have paid 78.4 percent of all federal income taxes. Now, after the Bush tax cutes, their share of the burden has risen to 82.1 percent. Every other group now pays a smaller share of the total income tax burden. As can be demonstrated by the report, Kerry's statements on the tax burden being shouldered by the poor is a complete fabrication.
Finally, to refute the statements made by the Democratic supporters of John Kerry regarding the horrible state of the economy, and that things were infinately better during the Clinton years, here are a couple of other charts drawn from sources which are non-partisan.
Enough is enough, liberals. Better to remain silent and appear ignorant, than to open your mouths and remove all doubt.
Keynsian economic theory stipulates this: In a normal economy, there is a high level of employment, and everyone is spending their earnings as usual. This means there is a circular flow of money in the economy, as my spending becomes part of your earnings, and your spending becomes part of my earnings. But suppose something happens to shake consumer confidence in the economy. (Like some idiots in the Democratic Party doing their level best to shake consumer confidence) Worried consumers may then try to weather the coming economic hardship by saving their money. But because my spending is part of your earnings, my decision to hoard money makes things worse for you. And you, responding to your own difficult times, will start hoarding money too, making things even worse for me. So there's a vicious circle at work here: people hoard money in difficult times, but times become more difficult when people hoard money.
The cure for this, Keynes said, was for the central bank to expand the money supply. By putting more bills in people's hands, consumer confidence would return, people would spend, and the circular flow of money would be reestablished. Just that simple! The other method was for the federal government to put more money back into the economy in the form of tax relief. Holy Cow, the Bush Tax Refund to the rescue! Keynes phrase for this was "Priming the Pump".
So now we are back to Democratic supporters of John Kerry making statements on the economy which are at best, misunderstandings of the facts and at worst, total fabrications to further their own agendas. A report from the nonpartisan Congressional Budget Office has Democratic presidential candidate John Kerry claiming it proves that “Over the last four years, the burden of taxes has shifted from the wealthy to the middle class.” C'mon, you heard him during the debates- He told us the Bush tax refunds were for the "upper 2% of the wage earners in this country", and the poor and working class had to carry the burden. This is one of the Kerry campaigns biggest mantra's!
Now for the facts. Not interpretations, or suppositions, but facts from a non-partisan Congressional study.
A report from the nonpartisan Congressional Budget Office has Democratic presidential candidate John Kerry claiming it proves that “Over the last four years, the burden of taxes has shifted from the wealthy to the middle class.” The report proves that what President Bush said about his tax cuts is true: “Tax relief is for everyone who pays income taxes.”
It’s true for the rich, and it’s true for the not-so-rich. Across 109.4 million tax-paying households — from the wealthiest 1 percent with incomes averaging over $1 million to the lowest-earning 20 percent of people with incomes averaging $14,900 — the report shows that all income classes have seen their income tax rates lowered thanks to Bush’s cuts in 2001, 2002 and 2003. The CBO report shows how 2004 income tax rates have dropped for everyone compared with tax laws in force in 2000.
The report also shows that Bush’s tax cuts have been “progressive” — that is, they have shifted the share of the overall federal income tax burden toward the wealthy and away from lower-income earners. Without the Bush tax cuts, the highest-earning 20 percent of households this year would have paid 78.4 percent of all federal income taxes. Now, after the Bush tax cutes, their share of the burden has risen to 82.1 percent. Every other group now pays a smaller share of the total income tax burden. As can be demonstrated by the report, Kerry's statements on the tax burden being shouldered by the poor is a complete fabrication.
Finally, to refute the statements made by the Democratic supporters of John Kerry regarding the horrible state of the economy, and that things were infinately better during the Clinton years, here are a couple of other charts drawn from sources which are non-partisan.
Enough is enough, liberals. Better to remain silent and appear ignorant, than to open your mouths and remove all doubt.
posted by Anonymous @ 9:03 AM
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