The Times a while back noted a hue and cry about cutteing back and being austere in light of economy. I have a different idea on why this is wrong headed. The extreme of this idea is cutting taxes on the richest 1-4% and trimming benefits on the rest. Those of us in the middle of this crunch need and spend every dime the comes in. It isn't a matter of storing away that left over $1,000 at the end of the month, it is not spending every dime of it to get through the month.
Tax break benefits for those who have the excess to begin with is actually counter productive to the economy. For instance if 10% of every household needs a new refrigerator each year and only the 4% of all households have the where with all to purchase, then (using small numbers for an example) about .4 refrigerators are sold. If the other 96% has the cash then 9.6 refrigerators are sold. The idea is that with durable goods and all the products that really spark jobs...these big ticket items need a fuller buying population.
California is a perfect example of rich and powerful..look at the senate and governor primaries and general elections for proof. Are these people now in these races because they are simply the best or do they have enough money to afford to grab the power.
Tax break benefits for those who have the excess to begin with is actually counter productive to the economy. For instance if 10% of every household needs a new refrigerator each year and only the 4% of all households have the where with all to purchase, then (using small numbers for an example) about .4 refrigerators are sold. If the other 96% has the cash then 9.6 refrigerators are sold. The idea is that with durable goods and all the products that really spark jobs...these big ticket items need a fuller buying population.
California is a perfect example of rich and powerful..look at the senate and governor primaries and general elections for proof. Are these people now in these races because they are simply the best or do they have enough money to afford to grab the power.