Posted by The Left is trying to make us believe that Bush’s “failed economic policies” (which were mainly tax rate cuts) are to blame for the current recession of our nation’s GDP…
Can someone try to explain to us how letting taxpayers keep more of their money caused this recession?
BuyGold – “the tax cuts caused problems” – REALLY? 2/3 (that is 66.67%) of the GDP is CONSUMER SPENDING. You are claiming that allowing CONSUMERS to have more to SPEND caused a problem???
no
Bush’s failed economic policies go a lot further than just tax cuts.
interesting how the Economy was fine until the Dems took congress in ‘o6
No.
The housing bubble collapsed (just like the tech bubble did in 2000), which brought down the economy.
The tax cuts caused problems but weren’t the biggest reason for the depression. Wasting 3 billion per week in Iraq was probably reason #1. Allowing the banks to take the money supply to the casinos is probably the second biggest contributor to the depression.
Democrats will tell you anything and everything caused the recession EXCEPT FOR Barney Frank’s mishandling of Fannie Mae and Freddie Mac…
And the banks being encouraged to loan money to people who couldn’t afford to pay it back. Not even on paper.
The country was doing just fine until the Democrats took control of Congress in 2006. They had a lower approval rating than Bush until Bush left office. Then all of a sudden, everything they were doing was peachy.
The real truth is, neither party is blameless, but the Democrats are not getting blame due them at all here.
This is where you fake conservatives and you funny liberals don’t speak the same language the libs aren’t saying it was the tax cuts no. They are saying it was the spending. which by the way obamas stimulus holy shit
no! GREED from top to bottom
Deficit funded tax cuts helped put us in the toilet we are in. Absolutely. Tax cuts without spending cuts do the exact same thing to the bottom line as deficit spending.
it didn’t… the system of credit that this country is run on is part of the reason, lend people money knowing they can’t pay it back, they fold and you have outstanding debt that sits on a balance sheet. Do this millions of times with billions or trillions of dollars….
then you have the fact that our currency is controlled by a cabal of bankers called the federal reserve… and the fact that our currency is not backed by gold and silver… so what do they do when we need more… why just print it… and the market is flooded with worthless paper….
oh and what did the majority of people do with those tax cuts? They went to Wal Mart and bought more useless $hit intead of paying down their debt!
no.
It didn’t:
Tax-cuts brought in more tax-revenue and encouraged more employment…
confirm:
http://www.bea.gov
http://www.bls.gov
The Dems are taking attention away from Fannie/Freddy/CRA and their involvement in that program and eventually brought down the entire financial system. Dodd, Raines, Frank, Waters, Pelosi, Obama, and many others kept the giants deregulated even while they were cooking the books and re-rating mortgages to sell in the credit-default swap market.
Without them, they sub-prime and paper markets would have been small. They were the enablers allowing banks to securitize (so they could reset their solvency and loan more) and allowed the paper-market to acquire falsely rated packaged mortgages in an effort to diversify their portfolios…mainly hedge funds.
Direct from the Donkey’s mouth. Keep in mind most loans were issued b/n 2004-2006:
http://www.youtube.com/watch?v=hxMInSfanqg&feature=related
I’m not discounting repubs, consumers or banks — merely pointing out who the enabler was. Without fannie/freddy/CRA, none of this would have taken place…the housing market would have never been artificially inflated and there would have been no “bust”.
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David H:
“Deficit funded tax cuts helped put us in the toilet we are in. Absolutely. Tax cuts without spending cuts do the exact same thing to the bottom line as deficit spending.”
Actually deficit-funded tax cuts pay for themselves. In both Reagan’s years and G-dubs years the program paid for itself and more in 5 years (adjusted for inflation).
http://www.bea.gov
http://www.bls.gov
1) A 2005 study by Andrew Mountford and Harald Uhlig “analyzed three types of policy shocks: a deficit-financed spending increase, a balanced budget spending increase (financed with higher taxes) and a deficit-financed tax cut, in which revenues increase but government spending stays unchanged. We found that a deficit-spending shock stimulates the economy for the first 4 quarters but only weakly compared to that for a deficit-financed tax cut.” In other words, FDR vs. Clinton vs. Reagan, Reagan wins.
http://www.usnews.com/blogs/capital-commerce/2009/1/27/10-reasons-to-nix-the-stimulus-plan.html
nope it kept it from getting worse!
punishing the people who create jobs and wealth is the worst idea
the lending practices that started in the 90′s and were heavily supported by obama caused our problem
the right wants to use logic now?
it’s a little late for that, isn’t it?
like Obama makes the stock market drop? that’s real logic?
GM says it lost billions of dollars… but that’s not why people sold GM stock… it’s because of obama…right? HAHAHA
you explain 10 percent of the rediculous stuff the right says on here in a logical way, and I’ll explain the tax cuts to you…
For every winner in economics their is also a loser. If the money from tax cuts lets the average American have more money then that means the money must be removed from somewhere else. In this case the government. Naturally they want you to think this so that money will go back to government spending. The left stands for big government and it makes since for them to say this.
Letting tax payers keep more of their money is good for the domestic market in a normal situation. It is good when the buyer has lots of money because then he can use that money to buy lots of stuff. This reinvests into the economy. But the leftists are frustrated because they think that Bush let the taxpayers keep the money but instead of spending it wisely the taxpayers squandered it. They over extended themselves in the housing market and other ways. Then in fear of a recession the public began to save they’re money. AHHH. Now people are not reinvesting into the economy but actually leaving it stagnant.
The result is that the leftists do not trust in giving the Americans back they’re money just yet. Then a man named Obama comes along.
Federal Reserve, banks and the gov’t letting illegal aliens buy homes who had no jobs, and, those who did not qualify,the liars loans etc. The bubble burst and spread the poop all around and we’re in the tank. I knew Bernanke was lying all the time and Greenspan,too. They must think we have a ‘bunch of rocks’ for brains-but, we all knew we were in a recession-no doubt about it. Now, they’ll lie when we dip into a depression, all politicians are the same no matter which side they say they are on-they aren’t on our side, thats for sure. Its past time throwing mud at who did it-its done and we’re ‘in for it’-Iam gettin’ the camping gear out and stocking up on toilet paper-I’d hate using leaves-like in the last depression-yikes! and, rationing cards for gas, milk etc.
So-called “trickle-down” economic policies ultimately fail because they proceed from the assumption that the conceptual reality of finance is an accurate representation of the material reality of physical economy. That is not always the case.
By heaping more benefits on the already wealthy, Bush’s tax cuts fostered the accumulation of a huge amount of financial capital in the bank and brokerage accounts of the rich. This accumulation became so great that it resulted in a blockage in such capital flows – the people with money have so much, and the people without are so deeply in debt, that investors can find no opportunities for profitable investment.
Since financial capital flows have come to a screeching halt, there is no way to economically direct physical production – meaning that the “real economy” is collapsing as well.
While the tax cuts are merely one contributing factor, we would be remiss not to acknowledge the role they have played in bringing about the current crisis.
This is just my opinion. All of this recession started when the price of gasoline started to go up. If our law makers in Washington, (The people that we send to work on our behalf) had work to stop the rise in fuel I believe we would not have been in this mess. They had to know that the trucks that bring food to your neighborhood markets and grocery stores had to pay more for gas then the food prices would have to go up. That just started to escalate prices on everything. People were spending more money on food and didn’t have it to spend on other things so the other retailers started losing, people quit buying and hellooooo
recession. I’m not a college graduate but I have sense enough to know that one things causes others thus a landslide in the economy. You know what? There are about 350 million people in the US. If the government had given every household 500 thousand dollars and put stipulations on how it was to be spent, such as paying off home loans, credit card debt,and other debts they had then it would have boosted the economy, because the banks would be receiving money on home loans , the credit card companies would be paid and the economy would have recovered faster because people would be spending money. I believe there would not have been as many jobs lost either. That way it would have been a lot cheaper and not as much money would have been distributed.
No, it was the Federal Reserve with its easy money policies that caused the housing bubble.
No it wasn’t tax cuts, but there are a lot of factors to be considered.
Housing bubble- which the government promised would cover faulty loans and it was government that encouraged bank to lend bad loans. But, it mostly done by people who do not read their loans or even understand how basic mortgages work.
Illegal immigration- the cost of care for these people, cost of court time, the cost to enforce immigration law, and the wasted money on the virtual border fence. I’m not just talking about hispanics but other foreigners as well.
Credit- too many people lived above their means, not only with mortgages, but with credit cards and store credit. Saving money and buying responsibly was kicked to the curb.
Government- every president, governor, congressman, or any politician has the potential to really f***up things whether they mean to or not. It is our responsibility to check on the federal, state, and local governments.
It’s funny how the left thinks that trickle down economics doesn’t work and Obama’s stimulus is trickle down economics. I’m not talking about Bush’s; I’m talking about the bill obama said was his plan.