It seems like the Republicans in Congress have decided that sabotaging economic recovery and employment growth is their best tactic for electoral gains in the November elections. Indications of this plan have been around since the Democratic victories in 2008. It seems that all doubt about facilitating the economic downturn as a path to political power for Republicans have been removed by recent legislative votes.
Economic recessions and depressions almost always result from insufficient “effective” consumer demand for goods and services produced domestically. In economic terms, wanting something is not “effective demand” . For a want to become a demand for goods or services, it must accompany the desire to buy with the ability to actually purchase. Money is required.
Jobs are not created by just having large pools of investment money available. There must be the opportunity to invest in a business that will have customers who can buy the goods and services before the investment money flows into job creation activities. The Republican Right economic theory that economic prosperity and employment ” trickle-down from the wealthy” has proven to be unsound by historical experience.
Tax cuts for the wealthy create huge investment money pools but not jobs. Our nation has plenty of money setting idle in corporate and personal coffers. Corporations have almost a trillion dollars setting essentially idle in corporate accounts at this time.
Republicans are seeking to extend the tax cuts for the wealthy by falsely stating that increases in taxes for the upper 2% of income earners would hurt demand and prolong the economic downturn. Experience and history prove otherwise.
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