It is astounding how significantly one idea can shape a society and its policies. Consider this one.
If taxes on the rich go up, job creation will go down.
This idea is an article of faith for republicans and seldom challenged by democrats and has shaped much of today’s economic landscape.For instance:
But sometimes the ideas that we know to be true are dead wrong.
Anyone who’s ever run a business knows that hiring more people is a capitalists course of last resort, something we do only when increasing customer demand requires it. In this sense, calling ourselves job creators isn’t just inaccurate, it’s disingenuous.And his most incredible fact:
If the typical American family still got today the same share of income they earned in 1980, they would earn about 25% more and have an astounding $13,000 more a year. Where would the economy be if that were the case?This is what Reaganomics has cost everyone reading this blog: $13,000 a year in income.
Go read the speech, where he explains in very simple terms why Reaganomics cannot possibly work (and demonstrates that it has not worked). What he is saying is so obviously true you have to wonder: how did anyone ever believe the opposite? And yet, here we are...