Supply Side - Again?  

By Groff Schroeder

How many times have you heard it?  The best way to help the poor (economy, housing prices, stock market) is to give America’s wealthiest citizens and corporations US Tax Dollars.  Usually, those receiving such “richfare” appear to already have enough money to buy anything – including “representatives” of We the People.

America’s the long favored policy of welfare for the rich “supply side economics,” an economic “theory” rejecting common sense, logic and mathematics.  Sensationalized distractions, misleading “sound bites,” repetitive speculation, wishful thinking and deceptive “analysis” from America’s pundits, “professional” journalists and “representatives” have taught We the People to hate Our government so much that although we all “support the troops,” few appear to advocate increasing taxes (even by $0.10 per year) to actually support them.  Therefore, America’s leaders grant massive tax cuts to wealthy citizens (and tax subsidies to oil companies etc.) while funding (at least) two wars and a massive “military industrial complex” with “fiscally responsible” policies disturbingly similar to runaway credit card debt.

The logic(?) is that tax cuts will somehow stimulate the economy so much that tax revenues will increase  (i.e. 4 - 1 = 5).  Those receiving tax cuts allegedly invest in business, supposedly creating jobs that allow benefits to “trickle down” to the middle class.  Supply side advocates say, “a rising tide raises all boats.”  Unfortunately, not everyone owns a boat. 

Supply side’s newest incarnation is a massive “bailout” for America’s investment banks.  If We the People make bad business decisions, we go bankrupt and end up working in fast food.  If wealthy business people make bad decisions, they deploy multimillion-dollar “golden parachutes” – often landing in even bigger jobs.  Periodically, they herd “our” “representatives” into using We the People’s money for a “bailout” (even if they have to borrow it).  Bailout…, golden parachute…, handy eh? 

The Bush Administration says there is “no choice” (just as there was “no choice” but “pre-emptive” war, obstructing 9-11 investigations, revoking habeas corpus etc. etc. etc.).  However, there are always choices - and perhaps it is time We the People and our “representatives” examine President Bush’s “no choice” emergency plans with a bit more skepticism. 

Let us “do the math” on the proposed “bailout.”  The United States government has already allocated (borrowed) more than $900 billion to bailout “Fannie Mae, Freddie Mac and the Federal Housing Administration.[1]  There approximately 6.725 billion people on earth and 305.1 million citizens of the United States, so that is about $133 for every person on earth or about $2,940 for every US citizen.  Why rescue those who created the problem instead of the People who are its victims?  Why not rescue homeowners in foreclosure – which would save the bankers too?  Why should we trust those who made this mess with another dime? 

Supply side economics has repeatedly failed disastrously.  Each time, We the People paid for the cleanup, while those who benefited appear to have opened sweat-shops and dummy corporations overseas to avoid paying taxes or living wages.  Perhaps only when politicians face “hard time” for accepting “donations” and “liberal” journalists (i.e. Rush Limbaugh, Bill O’Reilly, Joe Scarborough etc.) are exposed and discredited for excluding key facts that deceive hard working Americans into voting against their own best interests will We the People begin to reverse the damage of “conservative” policies like “supply side economics.”

Supply Side - Again? - by Groff Schroeder: October 2008