Bush's Trickle-Down Fantasy meets REALITY
According to Allen Roland at OpEdNews (quoting Dr. Stephen Jonas, The Photo Op President) Bush's trickle-down economic Fantasy met a harsh Reality on the street the other day, where the latter kicked the former in the teeth. Fantasy was rushed to PR, but is not likely to recover.
Bush's recently passed 77 Billion tax cut for the rich will leave 68% of all households with no benefits AT ALL and 20 percent of households in the middle of the income spectrum receiving just $20 ~This is the harsh reality of Cheney/Bush trickle down economics[.]To illustrate, Jonas underscores recent losses on Wall Street and highlights the harsh facts the mainstream media steadfastly refuses to admit about the US economy.* * *
Wall Street is beginning to realize that the Cheney/Bush administration not only does not have an exit plan for Iraq but has no idea what it is doing on the economic front ~ except line the pockets of its large corporate political supporters with unnecessary tax cuts which add to the unmanageable deflicit.
Remember, with this administration, it is all about perception versus reality ~ and we are all about to come face to face with the economic consequences of this corrupt and irresponsible band of crooks.
One headline yesterday encapsulates the story:This chart illustrates, in dollar terms, who is getting what out of these tax cuts:
Inflation concerns hammer Wall Street
Dow drops 214 points, sees worst one-day drop in three years
Republican economic policy is coming home to roost* * *
“The CPI data really kicked the market in the teeth today,” said Ken Tower, chief market strategist for Schwab’s CyberTrader. . . .* * *In a nutshell:
- As the US Dollar declines in value you will pay more for all goods that are manufactured overseas. Because America has shipped ever increasing share of its manufacturing base overseas, that means you will be paying more for more goods.
- The declining value of the US Dollar means that the price of oil will stay higher than if the US Dollar was stronger.
- Because of higher energy prices, inflation effects the price of most everything in the United States. When prices go up, Americans stop buying, and ultimately corporate profits will feel the effect.
- Most importantly, the Federal Reserve has increased interest rates – and it appears that the increases may not be over. If you have a variable rate home mortgage, you will soon be paying more for housing. Increased interest rates also mean fewer houses will be purchased, which means the construction industry will slow. [And that's just the tip of the iceberg!]
The harsh reality (quoted in part and paraphrased in part from the Center for Policy and Budget Priorities) is far different than the photo op:
- Most Americans’ paychecks will buy less than they did just last year.
- About 87 percent of the benefits of the reconciliation conference agreement would flow to the 14 percent of households with incomes above $100,000 with:
- 55 percent of the 87 percent of the benefits going to the 3 percent with incomes above $200,000.
- 22 percent of the 87 percent will go to those earning more than $1 million a year, which represent only 0.2 percent of all households.
- 5 percent of the benefits will go to those with incomes below $75,000, which is 75 percent of all American households. [!!!]
- 2 percent of all benefits will go to households with incomes of less than $50,000, which is 60 percent of all households. [!!!!!!!]
REALITY has laid waste to the fantasy. But, the sooner Americans come to grips with it, the more quickly we can begin taking action to recover.Distribution of Major Reconciliation Tax Cuts
(Assuming They Are Fully In Effect in 2006)Income Class . . . . . . . . . . . . . . . . . AverageTax Cut
Middle 20 percent . . . . . . . . . . . . . . . . . . . . . . $20
Top 1 percent . . . . . . . . . . . . . . . . . . . . . . $14,100
Over $1 million . . . . . . . . . . . . . . . . . . . . . $43,000Source: Urban-Brookings Tax Policy Center