Bush's "Magic" Economic Formula: The Rich get Richer; Regular People Lose Ground

[babylonsister]

http://www.alternet.org/story/52955/

Bush's "Magic" Economic Formula: The Rich get Richer; Regular People Lose Ground

By Larry Beinhart, AlterNet. Posted June 4, 2007.

The economy keeps growing, as does the enormous largesse of the wealthy, while the average person makes less than they did when Bush took Office. This is Bush's magic economic formula.

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So how can you pump out money while keeping inflation down?

In Bushenomics you do it by keeping a lid on earned income. Even driving it down. Millions upon millions of people earning a little bit less take away from the pressure of a few people earning millions upon millions more.

That, along with, the flood of low cost goods from low wage countries, helps balance out the inflationary pressure of rising costs in certain particular industries, like oil, health care and higher education.

It's not a question of conservatism vs. liberalism. Of government vs. free markets. All economies are, of necessity, mixed. All governments are concerned with the wealth of their nation. Government decisions will always effect how business operates. The question is, does the way government spends and invests create a sounder and healthier society? Or does it merely make certain sectors and classes rich, while hollowing out our economy?

If we are to invest public funds -- through government borrowing or spending or through simply spending tax revenues -- we have to be aware that rich people running around with bags of money won't necessarily do what is good for the wealth of our nation. They may run us into bankruptcy, the way the smartest guys in the room ran Enron into bankruptcy.

[IADEMO2004]

1. If the chickens are hungry feed the horses more oats.

from a Sen. Tom Harkin speech on Bush economics