Mitch, saying the sky is green doesn't make it so

[azmouse]

Quote:by Keith Rouda
Mitch McConnell said it again Sunday, this time on Fox News Sunday. "I'm for the biggest deal possible too, but we're not going to raise taxes... We think it's a terrible idea. It's a job killer." Well, you can go around saying the sky is lime green too, but it doesn't make that so either. What is so frustrating is that the most powerful Republican in the nation has to know why his talking point is simply not true. He has to. It just is not that difficult to understand!

There are two rationales for the argument that taxes slow the economy down and kill jobs. Neither of them makes sense in our current economic climate.

Taxes choke off the supply of money that businesses can invest in operations that create jobs.
There may be a time and a place for supply-side economics. And obviously Reagan is someone Republicans like to emulate. But if, and it is a big if, supply-side economics even made sense 30 years ago, it certainly does not make sense now. Freeing up more investment capital, when there is already way too much, will make our economic problems worse.

Taxes take money out of consumers' pockets, leaving them less money to spend on things that create jobs.
This is absolutely true... which is why anybody who talks seriously about raising taxes in a weak economy limits the discussion of increases to "wealthy people".


Read more at: http://www.louisville.com/content/mitch-...t-so-arena

[NJMaverick]

a job killer?

[jaxx]

Everything but tax cuts is a job killer to the repubs. The truth has nothing to do with their rhetoric.

[Eponine]

Shakes head. He really has it in for President Obama, doesn't he? Racist thug.

[Velleity]

There is no place and no time for "supply-side economics." "Supply-side economics" is not a legitimate school of economic thought. It was concocted by a political scientist named Jude Wanniski, not an economist. Very few economists have signed onto this garbage and the ones who have are generally considered to be flakes.

The crowding out of capital argument is of dubious merit and it is inapposite when we are at the zero bound with interest rates, where savings exceed investment.

Paul Krugman has a good blog today:

http://krugman.blogs.nytimes.com/2011/07...alvinball/

I could go on and on with this but you would only glaze over. Sorry.

[nofurylike]

ugly-spirited creature, he is.

thank you for posting that, azmouse.