This is so correct
Jobs at Nissan in Sunderland. Bought and paid for with favourable tax arrangements and sweetheart deals with wages subsidised by tax credits and other in work benefits. So we are employing those workers and paying them. What is all the fuss about.
Because of the debt. The conservative tax plan in the US hinges on the fact that giving money to the corporations and rich expands the economy and pays for itself. Not only that, but the money trickles down and helps the middle class.
It does not make a difference from an efficiency standpoint where the money goes. In the free market model, one person with $100 and one person with $0 is the same as two people with $50. But obviously, you would prefer to be the person with $100.
It’s like if you wanted to borrow some money from me. But instead of loaning you $50, I gave $50 to your boss and said don’t worry, I’m sure he will share. Of course you are better off taking the money directly.
The US tax plan will grow the economy temporarily because they are borrowing money. Of course if you get a $50 loan, you have $50 more to spend. But what happens when you pay it back?
Well, in the current tax plan, the tax cuts to the wealthy and corporations are permanent. The cuts to the middle class are temporary. So, when/if we ever pay back the loan, it is going to come from the middle class when the tax cuts expire.
Any time the government redistributes wealth, there is a loss in efficiency. That is bad.
But at least you can make an argument that there are other things besides efficiency that are important. Like equity. So, you are sacrificing some efficiency to help the poor and providing a safety net to mitigate risk.
There is never any reason to take from the poor and give to the rich. It’s morally sketchy and fiscally stupid.
So the Republicans here came up with this bullshit supply side theory, where only supposedly we are all peons who need Steve Jobs to employ us to survive. When in fact Jobs is equally reliant on us to buy Apple products, and make and sell them.
The free market only works if the competition is fair and the government does not play favorites. The Republicans are trying to sell crony capitalism as free market.
