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<p>Strange that while lots of Obamatrons want us to go back in time and head towards Socialism, countries like the UK and France have gotten the supply side message by observing the success of those policies here (lower taxes, sound money, promotion of free trade, reduced regulations, and the like). Check out how many foreign countries now have low-rate flat taxes. Supply side/free market shifts are even occurring in places like China and India.</p>
<p>It is common sense to reason that increasing taxes on the most productive members of society will have a dramatic negative effect on output, employment, production, savings and investment. Both Kennedy and Reagan BTW, effectively used supply side policies.</p>
<p>Income disparity is not a US phenomenon. Income disparity could be due to globalization and technology, but it isn’t George Bush’s fault or the result of his “tax breaks for the rich”. It’s a global problem, even in countries with fairly Socialist economies. Furthermore, in the US, it isn’t that the stature of the poor has worsened, it is that the stature of the rich has gotten disproportionately better (in a Democratic, Capitalist society, that’s supposed to be OK). It cannot be ignored that in the process, major indicators of the total American population’s welfare show significant progress over the past quarter century. We are not where we need to be, but much has improved at all ends of the economic spectrum as a result of supply side policies.</p>
<p>The ignorance of promoting class warfare, and standing up in front of crowds and telling them how horrible everything is and how much government can do for them, is that the poor do worse under leftist economic policies. Just because the rich have gotten richer doesn’t mean that the poor have not done better as well. The economy is not a zero sum game. Making the rich poorer does not guarantee that the poor with get richer. Common sense dictates that they will do worse.</p>
<p>While markets, when given time to work, are very efficient, governments’ tax increases are a very inefficient way to increase revenue. Resources go to pay for lawyers, accountants, asset shifts, moves, job changes, cheating, etc. Government compensation budgets swell as bureaucracy increases. Two liberal UC Berkeley economists named Romer found that increasing taxes just 1% of GDP has a very negative short and long-term effect on the economy, which after ten quarters reduces real GDP by 3%.</p>
<p>You do get some short term inflation if you shock the economy on the supply or the demand side, but not a long term inflation problem which is too much money chasing too few goods. The solution is to control money growth and stimulate the production of goods, and inflation clears. As far as deficits go, and the reduction of taxes reducing them, tax cuts will work better than tax increases if given the time to work.</p>
<p>Obama thinks that increasing taxes on those who are productive, and giving more money to those who are unproductive, will increase the volume of work done. Do you?</p>
<p>Obama believes that increasing the capital gains tax rate will increase the level of savings and investment. Do you?</p>
<p>Something like 97% of the taxes are paid by about 3% of the people. Do you believe that the economy will benefit from making the 3% or so pay more? What future will our economy have when the majority of Americans pay little or no taxes at all?</p>
<p>Obama believes that even if you reduce the amount of after tax returns expected by the entrepreneurs and innovators in our society, they will have the same motivation to work their magic on the marketplace. Does this make sense to you?</p>
<p>I think I’d like to change the title of this thread now to, “The Audacity of Calling Yourself A Progressive, When You Are Headed in the Very Opposite Direction of Progress”.</p>