George Speck of Portales writes about why he believes economic growth has been slow:
“I have been watching and reading the news and wondering why the Republican members of the U.S. House of Representatives have been so intransigent in their position to not close certain tax breaks given to the very rich.
I looked back to the Reagan administration and found three principles adopted by the Republican Party: The trickle-down theory of economics, tax cuts and deregulation.
By logic, the trickle-down theory should work but in practice it does not create the expected jobs. Why? Greed and power.
The rich and super rich did not expand their businesses in the USA, but cut American jobs and shipped them overseas to places like India and China. This movement was accelerated during the George W. Bush administration because of deregulation and the lack of enforcement of other regulations. The result was the near collapse of our financial system and the real-estate market.
This is still happening. An example: Goldman Sachs, a company that accepted “bailout money,” is currently firing American employees and shipping these jobs to Singapore.
Tax cuts work but only if matching spending cuts are included. If spending must increase to pay for wars like Iraq and Afghanistan a matching tax increase must take place. Because of the Bush tax cuts and the wars, we went from a budget surplus to an ever-increasing deficit,
The effect of the super rich and their power and greed on the Republican Party explains why they do not want to cut taxpayer subsidies to the large oil companies.
When the super rich speak, Republican politicians respond.
In June, CNN reported, they called the governors of Florida and Texas to a secret meeting in Vale, Colo. I expect they will decide between Minnesota’s Michele Bachmann and Texas’ Rick Perry as Republican nominee for president.”