I suppose it’s a good time to give the rich folk another tax cut.
I suppose it’s a good time to give the rich folk another tax cut.
The Republicans running Congress these days don’t care. They just don’t care. About the working people, that is. They only care about themselves and the fat cats who are keeping them in power.
When the Democrats regain control, and if they act in such a callous manner, I’ll lambast them, too. But for now, they have no say. All of this rests on the Republicans’ shoulders.
During and in the aftermath of the Great Recession, the Republicans steadfastly refused to take actions that would have spurred demand and helped put people back to work. The deficit is all that mattered. Consequently, it’s been a long, slow process to get from there to where we are today, with many, many unnecessary casualties along the way (suicides, drug overdoses, broken families, lost homes, skyrocketing student debt, etc.).
But now the deficits no longer matter. Now, the Republicans can do what they’ve wanted to do all along: give themselves and their cronies huge tax cuts — in other words, grab an even bigger slice of the pie for themselves. And put the tab on the backs of the working class.
On one hand, I don’t care. I’ll be fine; in fact, I’ll have more as a result of their tax cuts. The people who are going to get hurt the worst are the people who put the Republicans into power. So one could argue they’re merely getting what they deserve.
On the other hand, I do care. I care about what these people are doing to the country, both in the short term and especially the long term.
I’ve been around some of these people who don’t give a damn about the working man and woman. Long ago I realized they think the poor and working poor are lazy and deserve their lot. Indeed, many of them are pretty open about it in private. Conversely, they think they deserve everything they have — and more! They earned it. They’re entitled to it. They don’t even give a tip of their hat to the role that good fortune and luck play in it (or, conversely, bad luck).
It’s one of the reasons they’ve been so complicit with President Trump. While they wouldn’t be so crass to use Mr. Trump’s schoolyard vocabulary, they do in fact agree with him that there are winners and losers. In their minds, most people are losers. And they deserve what they get. The people with political power, of course, are winners in their minds. As are the rich who lavish them with donations, perks, inside information and other advantages that never come the way of the working person.
Meanwhile, the Republicans are stacking the deck further in favor of themselves and their rich cronies. Now that they have complete power, they intend to grab all they can.
And you can be sure they’re not finished. Just watch. They will claim that we have to cut back on Social Security and Medicare because of the huge deficits. Naturally, they won’t mention the role they played in inflating the deficit. It will always be someone else’s fault.
These people just don’t care. They don’t. They have plenty, and they’re not in any danger of not having plenty. Each man and woman for him and herself. That’s their motto.
I have no idea when the reaction will come, when those being screwed by these people will rise up and exercise the power they have at the ballot box. I don’t even know if that day will come in my lifetime.
If it doesn’t, then I suppose we’ll simply get what we deserve. Maybe they’re right: maybe we are losers.
But, of course, no one’s a loser. Or winner. That’s the language of people who are trying to justify their unjust and uncaring policies and actions. It’s the language of the entitled class that doesn’t care about anyone else.
The more appropriate term is people. Children. Women. Men. People.
When people care about each other, the Seventh Generation and the future of the earth and its inhabitants, this world can be a glorious place.
But you have to care.
Our president came out today for even larger tax cuts for the wealthy (himself included, of course). He’s urging Congress to cut healthcare spending to fund part of these cuts. And, of course, we’ll borrow the rest. Why not give more money to rich people today that our kids and grandchildren can pay back later, with interest of course? That’s so generous and selfless of us.
None of this comes as a surprise. Plain folk seem to have a deep and abiding concern for rich folk in our country. Even many of our evangelists promote such policies. Apparently, it’s what Jesus would do.
I assume there’s a sense in the countryside that our wealthy citizens have been treated unfairly. So all the country needs to make it great again are millionaires and billionaires who can hoard even more money for their children and grandchildren. And buy more houses. And bigger planes.
Just think how great we’ll become.
P.S. 11/14/17: It was announced today that the wealthiest 1 percent of the world’s population now owns more than half of the world’s wealth. But I suppose they can always use more.
Real median earnings for men have gone nowhere now for over 40 years. Over the same span of time real corporate earnings have risen roughly five-fold. – Jesse Felder in “Is This How The Winner-Take-All Era Comes To An End?”
Since the early 1960s, the share of our GDP going to labor (not unions, but labor, which means anyone who works for a living and earns a wage or salary) has been declining. Indeed, it’s plummeted since the turn of the century. Labor has been the loser; corporations and their owners (i.e., capital) have been the winners. If you doubt that, consider the fact the stock market is at an all-time high and is trading at multiples not seen since the days leading up to the Crash of 1929. And consider how little of GDP growth is going to labor versus capital. (The data are easy to find if you’re interested.)
As a result of these dynamics and public policies skewed in favor of the rich and capital, economic inequality in our country has reached levels not seen since the depth of the Great Depression. The top 20 percent is leaving the bottom 80 percent in their dust. And the top 1 percent, and even more so the top 0.1 percent — well, they’ve been reaping nearly all the economic rewards our economy has been generating in recent years.
Not long ago, corporate CEOs earned about 40 times what their workers earned. Today, they earn 350 times what the workers earn. According to noted money manager Jeremy Grantham:
The system has gone to hell. Keynes, Schumpeter–and Marx, not to mention–thought, by their nature, corporations and capitalism would overreach simply because they could. Corporations would use their advantages to get more power and more money. Their share of the pie would increase, and cause society to push back. Sooner or later there will be pushback.
Yet the president and Republican-controlled Congress are now proposing a massive tax cut for corporations and, by extension, their owners (which includes, of course, many foreigners, such as the Swiss National Bank, the owner of $88 billion of U.S. stocks and, therefore, one of the prime beneficiaries of the new tax bill). Indeed, many foreigners stand to benefit greatly from this tax bill.
Congress and the president intend to pay for this tax cut in several ways:
Oh, by the way, the tax bill preserves the outrageous hedge-fund tax loophole candidate Trump vowed to kill. I’m shocked. Another win for the wealthy; another successful head-fake on the part of the president.
On its face, the bill is ridiculous. Yet it’s being treated as a serious proposal. Indeed, I wouldn’t be surprised if it (or something very close to it) becomes law. And I also wouldn’t be surprised if the majority of the electorate support it. Of course, I also wouldn’t be surprised if it dies in the Senate (as it should).
A democratic society that tolerates a handful of very big winners while the vast majority of everyone else is denied their share of the wealth the economy generates is not sustainable. It will end badly. Civil strife. Social tensions unlike anything we’ve seen in at least 50 years. Violence. War. Radical populism (not the fake billionaire-led variety we’re presently experiencing). Or the whole kit and caboodle simply may unravel.
Mr. Trump and his lackeys on the Hill, as well as their corporate benefactors, may be feeling their oats these days. But they might be whistling past the graveyard. And by the time many of their supporters realize what’s happening, it may be too late.
P.S. Although the overall thrust of the tax bill is highly objectionable to me, there are some changes that I like. Such as limiting the home mortgage deduction. Stopping the practice of using tax-free municipal bonds (private purpose bonds) to build sports stadiums for billionaires. There are others. What I dislike the most is the unconscionable increase in our national debt that will result from these cuts, the huge benefits being conferred on foreign investors, the likely negative impact on individuals (higher interest rates, including mortgage rates) and the continuation of public policy favoring capital over labor (one of the sources of the gross economic inequity that grips the nation today). In short, it’s likely to make economic inequality worse, not better. Instead of addressing the deepening problem of the working class falling further and further behind, Congress and the president want to confer huge benefits on the wealthy. The wealthy are doing just fine. We need elected representatives who care about the working class. Despite their rhetoric, these jokers do not.