The political (and practical) case for economic populism NOW!

[kratos12]

All of Obama's economic stimulus proposals are well and good but they have one fatal flaw in common, they all put more money in the pockets of those who may not spend it.

The idea seems sound, reduce the tax burden on businesses and they will naturally use those savings to hire more people or buy new equipment right?

Wrong.

Sure some businesses will do exactly what the Pres is hoping but many will not, instead opting to inrease their cash reserves, pass the increased revenue on to their principles or pay down debt all actions that do not result in additional hiring.

Instead Obama should take Robert Reich's advice and play some "tax jujitsu" and eliminate payroll taxes up to 20K while reinstating payroll taxes for earners making over 200K, this act will all at once be highly popular, force the Repukes to argue AGAINST tax cuts for a change and have (according to Reich) a net zero effect on tax revenues.

The only change is that the Dems will for once fire up their base while pulling in a alot of converts, converts that will work really hard to retain that rather robust tax cut.

[RKP5637]

1. Actually, I think this is a pretty clever idea, basically flipping the table! Something

really innovative and outrageous needs to be done. To me, the concept that giving more money to the greedy would fix things was ridiculous from the start. I would have broken up the banks and let the fat cats on wall street rot.

[socialist_n_TN]

2. What it gets down to in a capitalist system is demand...........

I don't care HOW bad the economy is or HOW high the tax structure is on the highest incomes, if there is a DEMAND for a product, that capitalist will HIRE labor to make that product. Without money in the lower classes to spur demand, they WILL NOT HIRE!

To paraphrase, if the DEMAND is there for hanging rope, the capitalist WILL sell it to the workers even if the intended victims of that hanging rope ARE the very people who are selling the rope. It's the way the system works.

Edited to correct punctuation.

[RKP5637]

3. I wonder how much more it's going to take before people stand up and rebel. I don't

see why people aren't flocking toward unions where they can. Of course if demand goes up the way it seems to work now more off-shore labor is hired, the US based workers still lose out.

[xchrom]

4. Recommend

[girl gone mad]

5. I'm all about a payroll tax holiday and a national jobs program..

been pushing these ideas for a couple of years now.

[kratos12]

6. What amazes me the most is that this simple idea

would essentially fracture the Republican voting base as single issue gun/gays/abortion/god folks would desert the repuke ranks in exchange for some extra cash in her pockets yet I have yet to hear any Dem politician sign on to it.