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Reports

Republican Economic Policies Don’t Add Up

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Posted on Oct 6, 2008

By Arthur Blaustein

(Page 2)

Claims of being a maverick aside, McCain has emerged as nothing more than a supply-sider in the mold of George W. and Reagan. Since George W. took office, corporate profits have soared, while workers’ wages and benefits have been flat. That shows just who is the object of Bush’s conservative compassion. The Bush administration, supported by Republicans on Capitol Hill, pushed through a sweeping tax cut in 2001, under which the wealthiest one percent of Americans reaped 43 percent of the gain. In less than a year and a half, the federal government’s 10-year projected budget surplus of $1.6 trillion had vanished. In 2000, we had a surplus of $236 billion. In 2004, we had a deficit of $413 billion. This dramatic reversal is the direct consequence of Bush’s tax cuts. Since then, the Bush/McCain answer for the nation’s economic woes has been deregulation and more tax cuts for wealthy individuals and corporations, who by no coincidence contribute heavily to the McCain campaign. It’s “trickle-down” economics with a vengeance.

Since the conventions, McCain and his surrogates have been pounding away at the Democrats, labeling them as the “tax and spend” party. Yet recent research has shown that more than 70% of our national debt was created by just three Republican presidents. There’s an old expression in Las Vegas: “Figures don’t lie but liars figure.” Moreover, according to research from professor Larry Bartels of Princeton, real middle-class wage growth is double when a Democrat is president, contrasted to a Republican president.

So, while McCain and Sarah Palin compose hymns to patriotism, rugged individualism, “trickle-down” economics, “staying the course” on Bush’s tax cuts and family values, they are also embracing the very economic policies that undermine both the middle class and subvert the security of American family life.

American families need less pious rhetoric, and more policies geared toward a healthy economy, secure jobs, decent health care, affordable housing, quality public education, renewable energy and a sustainable environment. McCain seems unable, or unwilling, to grasp that the government has an important leadership role in this. In fact, providing tax giveaways for the rich and for corporate America is the only policy that seems to energize McCain and the Republicans in Congress, while Obama has pledged to repeal those very same giveaways. And, contrary to the GOP rhetoric, 90 percent of Americans—people making under $112,000 a year in individual income—would pay less taxes under Obama’s plan. 

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With four more years of McCain practicing Bushonomics, we could very well wake up one morning on the “economic endangered nations” list. Deficits and debt could strangle our economy for the next generation and all but the wealthy will have a tough time making ends meet.

Barack Obama has demonstrated a willingness to confront these painful realities. On overall economic policy, he offers qualities indispensable to genuine leadership for America—patience, fairness, candor and vision. We need an administration that understands and believes in coherent, comprehensive and equitable policies that promote sustainable economic growth— and, on that count, Democrats have a winning record.
Arthur Blaustein was chairman of the President’s National Advisory Council on Economic Opportunity during the Carter administration and was appointed to the board of the National Endowment for the Humanities by Bill Clinton. He is a professor at the University of California, Berkeley, where he teaches public policy and economic development. His most recent books are “Make a Difference” and “The American Promise.”


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By JHS, October 24, 2008 at 9:59 pm #
(Unregistered commenter)

Not since the mid-70s is the American public willing to listen to any economic deviation from the Friedman/Reagan supply side gospel.
In my lifetime I have felt like a outsider in my own country. Called a Socialist by friends and family members and worse by Republicans.

I feel a 800 pound gorilla being lifted off my chest as the supply-siders are forced to admit that their economic theory is very flawed.
More importantly a large part of the middle class of the country is listening and appear to be receptive to responsible and well targeted Keynsian measures to put money into the hands of “consumers” the people who actually drive a 21st Century economy not based on Elites, Robber Barons and money changers. The only way that “consumers” and labor has a say in the economy is to “Redistribute” some of the fruits of the economy to the consumers and workers.

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By Tony Ciallella, October 10, 2008 at 6:45 am #
(Unregistered commenter)

When will humanity the USA the Western developed world really awake?

In 2008 and after 2000 years of so called human evolution and learning, when will human beings understand that we are privileged to have been given life?.

We continue to amass knowledge and yet we deny understanding.

We know so much yet we understand so little!

Its not about money and wealth stupid!!

We are here for each other, not to just accumulate and amass money and wealth we are here to support and help each other to evolve and enjoy life together and not at the expense of one another.

As humans (and mother earth plunges) inexorably into the abyss of more stupidity and ignorance we are destroying mother earth with just too much excess consumption far more than we individually need and certainly cannot take with us!.

It’s not about just the USA ..its about wake up world, because each and ALL our time and our lives are limited and finite!! 

What a sad legacy we are leaving for our children and grand children and the humans of the future. 

Perhaps what we all need to wake up to ourselves is this!!

a damned good economic DEPRESSION to level the playing field of life and get us all back to our senses. I hate to think that history will repeat itself again and we now start to create greater conflict and greater wars to solve this crisis.

The greater power of spirit and life is at work, as these so called powerful wealthy and powerful, money ladened humans cannot be entrusted with this irresponsibility any more.

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By felicity, October 8, 2008 at 1:51 pm #

I’m still looking at the vast Pacific ocean out my living room window in hopes of seeing all those sunken ships rise to the surface at the next high tide. 

Didn’t the sainted Reagan promise that a high tide raises all boats?  Didn’t he promise that when the rich get richer everybody benefits?  Obviously the man had never seen a ship fathoms deep, broken up and mired in mud. Rising tides only raise ships that are afloat.

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By samosamo, October 8, 2008 at 9:34 am #

Authur Blaustein,

Why don’t you just called a spade a spade? And in this case call a republican a crook or a thief or a terrorist.
I mean, with the money flow going out of the taxpayers pockets and into the CONSERVATIVE’s pockets via the military, homeland security, corporate give aways, what the hell else can it be called? Anything else than GRAND LARCENY is sanitized doublespeak that the neocons have adapted so well from George Orwell’s ‘1984’. For them money means power and by George Orwell, they are gonna take it.
And after listening to Bitch Pelosi’s speech on the vote down of the first bailout attempt and the hypocracy and lies in that little doublespeak talk where the taxpayer would NOT be picking up the tab, wll just add her name to the BLUE DOG list, again.
There are a very few democrats and republicans that should remain in congress but the vast majority should be ousted ASAP. But the american public has been dumbed down so efficiently that the chances of that happening is very slim.

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By lichen, October 8, 2008 at 1:21 am #

As Naomi Klien’s recent speech on Democracy Now! has shown, the rapid followers of Milton Freidman’s “free market” methodology have brought poverty, human rights violations, and misery wherever they went, whether democrats or republicans.

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By markCapitola, October 8, 2008 at 12:30 am #

Blaustein notes in a well-written article, key point:

  | But he [Bush 42] embraced these “trickle-down” policies in order
  | to become vice president and then president. Reagan and both Bushes’
  | royalist economic policies of the 1980s and the past seven years were
  | failures—a fool’s paradise built on the sands of borrowed time and
  | borrowed money.

Probably correct.  Why? :-

1> Borrowed money, specifically excessive leverage, is the root cause
  of the problems we are seeing. 

  The US gov’t, by borrowing more is not the solution.  Practically,
  more debt most likely, longer term, is going to crater the dollar
  further, increase deficits (both internal and external) and increase
  inflation. Somewhat obvious, really, based upon a large, growing
  body of historical evidence.

2> “trickle-down” economics, best case, by definition, you end up
  with a trickle. QED a failed policy, even when the policy
  supposedly works, at its very best.

-Mark.

##

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By John F. Butterfield, October 7, 2008 at 5:41 pm #

Reagan lied. The economy died.

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By floydw, October 7, 2008 at 4:41 pm #

Crisis is composed of both danger and opportunity. The danger at present is that we will continue in our attachment to anachronistic narratives and unproductive abstractions. Such narratives and abstraction are an essential part of the discourse responsible for current circumstances.

A radical transformation of narratives and the ideas providing their currency is essential to transcending the vicious cycles and decay that is rapidly deposing our socio-economic system.

In light of this reality, I recommend Charles Eisenstein’s essay Money and the Crisis of Civilization for your consideration. Ideas with real currency! As Milton Friedman observed, ideas have consequences, and when crisis hits, we are dependent on the ideas we have “lying around.”

http://www.realitysandwich.com/money_and_crisis_civilization

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By yellowbird2525, October 7, 2008 at 2:06 pm #

as for the democrats: Clinton went & bribed the heads of Mexico & Canada to get Nafta thru & NAU which Bush Sr could NOT do; BOTH parties WORK for the CORP GREED, and FAIL TO EVER ADDRESS SOCIAL NEED. Henceforth, we have civil war in Mexico; cuz they went down to take over the land & water rights there. HELLO! and what of Iraq? SAME there; SAME enforced SlAVERY to the Corps which goes on in the USA; SAME in Austrailia, & France, & Italy; oh, INDIA has civil unrest because THEY did not “bow” to the LUST OF GREED of the Corps of the USA. What do you THINK is going on in Colombia? people SHOT & MURDERED who tried to work on SOCIAL NEED instead of CORP greed; Clinton brought back $800,000 for Hillary’s campaign who was “against” it supposedly. Now they are trying to claim the TRADE AGREEMENT there was signed by Congress in 2006. Betcha it is the SAME Corp GREED from USA using military there under “heading” of WAR on DRUGS: but ‘don’t let the people know that they went there POISONING the trees, land, water; killing millions to obtain for THEIR greed land & water rights. Let them THINK that it was “for a good cause” ending POVERTY like the LIE that was given by the 2 USA ambassadors plotting overthrow of Govs in S America who didn’t take BRIBES from the USA. We the people are “presented” it is for “the greater good”::::::::::: of THEIR pocketbooks only. CERTAINLY NOT for the people THERE or HERE. You have proved you utter & sheer incompetency to GOVERN or RULE anyone anywhere anytime in any way shape or form.

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By yellowbird2525, October 7, 2008 at 1:58 pm #

gerald d: and THIS is exactly why our politicians are bribing the heads of other countries to “do it their way” cuz hey hey hey NONE of them have EVER had to pay for their deeds; and the stupid people of this country cannot even SEE the graft & corruption & “nothing gets done” for the PEOPLE or the PLANET, and they are busy shouting rah rah rah lets FORCE this MONSROSITY they call “democracy” onto EVERYONE while the people & planet suffer. *****hello does anyone have an iq on the PLUS side in the USA? IF these stupid prostitutes who ONLY move or do anything if they are PAID: WHY do we want ANY OTHER COUNTRY & PEOPLE to SUFFER? and millions are DEAD in nations all over this WORLD you are not even TOLD of half of what is done by GREED followed up by the mighty army of the DECEIVED! WHAT do you THINK is freedom? My neighbor’s idea is that she is FREE to go to a store. Holy mackinoly folks! do you THINK they cannot do this in CHINA?

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By Larry Linn, October 7, 2008 at 1:57 pm #
(Unregistered commenter)

So McBush takes credit for warning about Freddie and Fannie, to close the door after the horses have left the barn. Where were President Chaney and Vice-President Bush? They said that the economy was “sound”. Sounds like B.S. How many Freddie and Fannie lobbyists are on the McBush Election Committee? I guess that when you own more houses than you can count, you do not understand or worry about the Residential Mortgage industry!

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By felicity, October 7, 2008 at 1:26 pm #

I’ll take the word of my 98-year-old mother who called me last night screaming, “Goddamn those Republicans, they’re at it again!”

There is something to be said about experiencing events first-hand - especially 98 years of experiencing them.

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By purplewolf, October 7, 2008 at 12:21 pm #

A lie repeated over and over again, a favorite Republican tactic, becomes reality to those of weak minds and little interest in self preservation. They want every move they make to be dictated to them as to what to do, what to believe in and never think for themselves or question authority. That is the only way they feel safe. And what threatens this safety? The falsehood of the idea Democrats will raise your taxes.

If these sheeple would open their eyes and wake up and really take a good look around for themselves, maybe then they would actually realize that the Republicans are the ones who have wrecked the economy with their reckless handling in running the country. You cannot keep cutting the taxes for the rich, allowing over 2/3 of the big corporations to pay NO taxes and spend like money is going out of style and the Republicans, but mainly as this current administration has done and not rack up some major debts similar to former Rep. Presidents like Ronald Reagan and Bush I, but far exceeding the debt limit that Reagan had.

McCains latest pile of tripe, heard last night on the news was that this entire Wall Street collapse is due to the Democratics being in rule of the last two years. Funny, but there were signs of this well before 2 years ago. It is always easier to point the finger at others for the mess one creates, this draws attention off of them and onto others. A very old practice of the guilty.

If by another fluke, AKA as cheating, McCains party does manage to steal a third election in a row, he will continue the tax cuts for the super rich and spend more and expand on the war front. He has already told the public countless times he knows nothing about economics. Do we really need another incompetent person leading America into the last throes of its existence?

Ask yourself: Are you better off today than you were 4 years ago? How about 8 years ago? If you can honestly say you are better off, then go ahead and vote Republican,and if they do cheat their way into the White House again, when the rest of America goes under, you can only blame yourselves, as you have allowed this to continue.

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By Optisizer, October 7, 2008 at 12:05 pm #
(Unregistered commenter)

I wouldn’t mind see the top three presidents for all those categories. Bet ya the dems still would be crushing the repubs…

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By Tubalcain, October 7, 2008 at 11:33 am #
(Unregistered commenter)

@tomack

This is what irks me is that they don’t push it forcefully & continually. It kinda of makes me think that they are in some kind of collusion together.Democrats should be ashamed.

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By tomack, October 7, 2008 at 11:24 am #

This SHOULD be a large part of tonight’s script. Forcefully and continually presented.

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By Tubalcain, October 7, 2008 at 9:50 am #
(Unregistered commenter)

Democrats have failed to drive the message that it was Republicans who caused most of this mess so the stigma of Democrats being bad economy managers resonates in the minds of many Americans. Why aren’t the facts that Mr. Blaustein points out all over the evening and 24 hour news shows? If Obama wins he will inherit a bad economy from Bush Jr.Admin, Republicans will then blame Obama the Black Liberal Democrat for everything that has happened. Democrats will sit there like lame ducks and not fight back because they believe they are better than that. The sad fact is that Americans are not the most informed so they believe whatever the MSM tells them be it a 24 hour “news show”, news papers,etc. Again, the message is that Democrats are tax and spend. So unless the Democrats work hard to reverse that stigma, it will always stay.

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By Big B, October 7, 2008 at 9:05 am #

None of the presidents, from Truman until now, have had to face what the next president will have to deal with. Jimmy Carter had it bad, but it will seem like a walk in the park compared to the next four years.
The next president will have an economy in major decline, out of control spending, foreign wars, domestic crisis in healthcare and housing, an energy shortage, overpopulation, inflation, and an america divided along socioeconomic and religeous lines.
If it can fixed, it will take extraordinary government leadership and sacrifice by all citizens.
Do you think we have it in us?

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By GeraldD, October 7, 2008 at 3:33 am #
(Unregistered commenter)

OBAMA PLAN WILL HELP THE FANNIE MAE CROOKS TO AVOID PRISON TIME. 

THE BAIL OUT CRISIS WAS CAUSED BY A HANDFUL OF CORRUPT CONGRESSMEN & FANNIE MAE OFFICIALS. THEY BOUGHT UP 7 TRILLION DOLLARS IN BAD DEBT IN ORDER TO PAD THE BOOKS AT FANNIE MAE AND COLLECT HUNDREDS OF MILLIONS OF DOLLARS IN SALARY BONUSES FOR THEMSELVES.

HERE ARE THREE VIDEOS THOSE CORRUPT FANNIE MAE OFFICIALS & AT LEAST FIVE CORRUPT CONGRESSMEN DON’T WANT THE AMERICAN PEOPLE TO SEE:

http://www.youtube.com/user/TheMouthPeace 

 
http://www.youtube.com/watch?v=_MGT_cSi7Rs   
 
 
http://www.youtube.com/watch?v=q2WKtp01yOw   
   
 
One Of The Crooks Will Probably Be The Next Attorney General Under Obama.  If That Happens, NONE of them will ever be brought to justice. 

http://www.wnd.com/index.php?pageId=67068

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