Monday, August 23, 2010

Are the Rich going to "take their toys and go home"?

In response to Public to Lawmakers: End Tax Cuts for the Rich, sweartogod replies:
Who creates jobs? The poor do not. I am poor and cannot create any jobs. It seems to me that the people who have money create jobs. By taxing them is there no incentive to create jobs. Like Donald Trump says if they punish me I will sit and do nothing.
This is a common form of blackmail threat leveled by the rich- do what I say or I'll withdraw my investment from society. I need more "incentives" to invest.

I answered:
Those who possess money do not need "incentives" to create jobs- hiring workers and selling the products they produce is the only way that they can "make" money. This may be done by loaning their money to a bank, by loaning it to a corporation through the stock market, by loaning it to the government through buying bonds, or by direct investment.

In periods of crisis, they tend to become very conservative- settling for living off their riches and not making any money for a while. This is where the role of government as a "job creator" comes in. By spreading out the risk of the needed reinvestment (and by freeing up more money to those who must spend it on the things they need to live)- the government is able to soften the impact of the kind of devastating crises that existed before WWII.

Unfortunately, we live in a time when the sheer greed of the rich has blinded them to the entire progress of US governmental policy over the past 80 years. They have spent exorbitant amounts of money to fund thinly-veiled propaganda efforts around why they should not have to give even a small proportion of their money to the government- for their own good as much as anyone else's.

While these anti-tax policies might be good for the rich on an individual level, they spell disaster for society when implemented broadly, and the Trump quote is nothing more than an attempt at blackmail.

Please, Brother, study this issue carefully and with all the attention it deserves. You will find out that these lies are a dangerous poison.

Regards,
Sam

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