President-elect Obama's promise of a middle class tax cut is needed more now than ever before. It is estimated that consumer spending represents 70% of the economy and with the economy in free fall, retail sales down big time and still falling and the unemployment reaching 10.1 million people, the middle class is in a bind with too few dollars to spend.
The people who have benefited the most from republican trickle down economics are holding all the cards now. These are the people who were supposed to use the money to grow the economy and create jobs. Yet so far this year through October the economy has lost 1,179,000 jobs and the economy is in its second recession in 8 years.
A substantial tax cut for the middle class will go a long way to help revive the economy and put the middle class back in the ball game to some degree. The big problem is that the middle class has fallen so far behind, part of their tax savings will have to go to pay off debt and to replenish savings. That is good also but it means less money to use for buying to keep our economy running and hiring people.
In addition to the tax cuts, the middle class needs better paying jobs and a larger share of the profits they help create. Corporate America must no longer be able to reap the benefits of what their workers produce without sharing those benefits with the worker.
The tax cut should be only the first step to help the middle class advance its economic power and Obama and his administration should keep that as a priority. That would be the greatest foundation for a sustained economy and job creation. President Kennedy said over 40 years ago business needs customers to have a productive economy. It should be obvious that has never changed and it is playing out today.
It should be noted the 10.1 million workers without jobs is the highest since 1983 when Reagan was in office. Republicans have run the country 20 of the last 28 years, yet it was the democratic administration of Bill Clinton who achieved the greatest economy and job creation and where the middle class did better. President-elect Obama's administration will turn things around for the middle class, the economy and job creation. Twenty years of trickle down economics should be put to bed with good reason.
1 comment :
This story is right on target. The middle class has to be paid more attention to with its needs. It is astounding what is happening to our economy on the republican watch, especially the magnitude of the problem. I am glad this blog explains how the republicans failed policies have affected the country, especially the middle class.
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