Wednesday, January 30, 2013

Effective fiscal policy

I’m going to keep this short and sweet.

It ain’t tax cuts.  Federal revenue as a percent of GDP is already way below long term averages, and it was already probably too low--we have a decaying infrastructure to show for it.

It ain’t “stimulus spending.”  The Princeton Clowns, Krugman and Bernanke (and remember, Princeton historically has sent more of their graduates to Wall Street than any other school in the country) with some fact-checking by the Berkeley Inequality Guru, Emmanuel Saez, have shown the rest of us that stimulus spending, like all other income types, goes mostly to the top 1 percent.  Saez showed that in 2010, a year when the stimulus package was active, 93 percent of the increase in income went to the top 1 percent.

I can picture Krugman and Bernanke as two nerds playing with the rubber nipples of a blow-up woman doll, one nipple labeled “fiscal policy” and the other labeled “monetary policy.”  Heads up their asses, fully captive to the status quo.

So what works?  Income redistribution.  You take money, whether borrowed or taxed, and give it to the people on the bottom.  They will spend every penny of it, and it have a multiplied effect on many other incomes.  While they may buy goods made in China by American corporations sold at Walmart, they are likely to spend a lot of it on goods made right here at home.

The Benign Brodwicz program has always been poverty level workfare for those that need work, and honest banking.  If the honest bankers in the world would think for a second, they might realize that it was playing extend and pretend to recapitalize after the Latin American debt collapse in the 1980s that started the country on its own debt run-up.

Sheila Bair gets it. 

File under kleptocracy, banana republic, fascism, theft

No comments:

Post a Comment