Donkey Punch

October 22, 2008

Have I mentioned how much I love the CSM?

Filed under: Politics — Tags: — cangrejero @ 7:11 am

(sculpture by Stephen Hanson)

That would be the Christian Science Monitor weighing in on the (false) meme of Friedman-styleMonetarism:

The $52.5 billion plan Senator McCain announced last week includes $36 billion in tax breaks for senior citizens withdrawing funds from retirement accounts and $10 billion for a reduction in the capital gains tax. Those are perks for investors, most of whom are relatively affluent. (McCain is also proposing a two-year suspension of taxes on unemployment benefits, but that’s a fraction of the plan’s cost.) He also favors broader tax cuts for businesses and wants to extend President Bush’s massive tax cuts indefinitely, even for people earning more than $250,000 per year.

McCain’s proposals reflect the traditional Republican emphasis on cutting taxes for businesses and wealthy people in hopes of stimulating investment – “trickle down” economics, as it came to be called during Ronald Reagan’s administration. But will proposals of this sort really “stop and reverse the rise of unemployment” and “create millions of new jobs” as McCain has claimed? The historical record suggests not.

President Bush’s multitrillion-dollar tax cuts, which were strongly tilted toward the rich, could not prevent (and may even have contributed to) significant job losses. On the other hand, when Bill Clinton raised taxes on affluent people to balance the federal budget (while significantly expanding the Earned Income Tax Credit for working poor people), unemployment declined substantially. Under Clinton’s watch, 22 million jobs were created.

I call it a meme because there is no other explanation for why the ideas of “trickle-down” economics still exist. Years and years and years and years and countless examples of it not working have not deterred its proponents.

I mean, the top marginal tax rate? Really?

(Crossposted at The Midpoint.)



  1. Where did you get your blog layout from? I’d like to get one like it for my blog.

    Comment by Mike Harmon — October 22, 2008 @ 7:30 am

  2. […] Original cangrejero […]

    Pingback by Have I mentioned how much I love the CSM? : thegameoflove — October 22, 2008 @ 7:33 am

  3. I think one of the scarier things is that the rank and file that supports the proponents of Trickle Down economics are some of the least likely to benefit from it.

    Comment by t4toby — October 22, 2008 @ 7:28 pm

  4. yes. i think it’s just part of that american myth, that anyone can be rich and successful, if they will only apply themselves and try harder.

    so why make things tough for rich people? after all, you’re going to be rich some day real soon, since you’ve been working so hard for so long. and wouldn’t you feel stupid if you supported a policy when you were poor that came right around to bite you once you get rich?

    sometimes america makes me so frustrated.

    Comment by sarah — October 23, 2008 @ 12:39 am

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