Reagan's economic ideas are failures, but they are still being implemented. And why? Because the very richest among us continue to benefit, even if it is a result of stealing from everybody else:
Both sides agree that the US private economy is in such a poor and dangerous condition that it needs massive fiscal stimulus from the federal budget: classic Keynesian policy. Washington thus plans to spend roughly $3.5tn, while taking in tax revenues of roughly $2tn; hence a deficit of $1.5tn. In the light of such numbers, the debates of Democrats and Republicans over spending cuts likely to be of the order of $40-60bn are inconsequential. They become yet more inconsequential in light of the fact that the federal budget's projected deficit of $1.5tn will carry an annual interest cost of $40-60bn. That interest will be an additional budget outlay offsetting the likely cuts arrived at the end of loudly publicised debates over spending reductions.
Both sides agree that government spending will continue to follow the old "trickle down" theory, despite its failure to date. Massive federal outlays on the largest banks, insurance companies and selected other large corporations produced a "recovery" for them, but not in the rates of unemployment, home foreclosures and state and local austerity budgets that keep crippling the US economy. Federal largesse has yet to trickle down, but both parties proceed on the assumption that it eventually will. Neither party tallies the economic and social costs of massive unemployment, home loss and state and local austerity budgets. Neither party offers any alternative to "trickle down", as if no alternative exists or is worth debating.
Our government is run by and for gangsters. These people who promote these laws and benefit from them ought to be in jail instead.
The breaking point is just about here.
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