4eys, I agree with most of that and as you mention it's the "people's hand" we need to get cash so that they can increase the rate at which money churns. A small decrease in taxes on the lower paid has a huge effect on their spending where even a lrge change on teh well off has little impact.
I understand the cause and effect thin. The point I was making was that higher or lower taxes have little or no effect on investment or job creation. It's a myth. The current "debate" is centered around the statement that higher taxes kill jobs which is not true when those taxes actually relate to discounts for jet plane and race horse owners.
Interestingly enough, many of those tax deductions supposedly were to save an industry and therefore save jobs at some point in the past and are no longer relevant in many cases.
We actually have several major structural issues to address and fixing one too fast will cause problems with others.
We spend more as a nation (individuals as well as governments state and federal) than we generate as income, so we need to cut back on imports and consumption. If we do that too fast, it kills jobs in all sorts of service sectors, so that process has to be manged.
We need to generate new jobs and that will only happen under certain circumstances and new technology has typically been supported heavily by Government, but that increases the deficit, so that also has to be carefully balanced. new jobs in manufacturing are unlikely to appear any time soon and that causes problems with unemployment and imports, so we need to talk about where those jobs will come from and how they will be created.
As long as it's cheaper to import, then corporate American has no incentive to make things here and as long as we demand more stuff and we want it cheap, there will be no demand for American made products.
Health care in the US is rates somewhere around 40th in outcomes and yet it costs more here than anywhere else and that's also driving us to debtors prison. If we really drive down health care costs some of that cost reduction will be in smaller margins to big Pharma who will in turn cut some jobs or move them overseas - damn. That was what we just tried to avoid.
None of the issues in insurmountable but they are not easy to fix and even harder unless both sides agree to actually do the right thing and work together. After all, we pay them to tackle these big issues, not to stand on principal for a small group of people.
It ain't easy, but if it was, anyone could do it and that is what we got - a lot of "anyones" that can't actually see past their noses to see a larger picture. Some will argue that their job is to look after just the people that got them into power - lobbyists or poltically motivated groups on either side of the fence.
In reality, all politicians are paid very well by all of us to do the work for ALL Americans and we need to remind them that they have duties as well as rights. We are all in this mess together and the only way to get out of it is to work together.
PJ: There was third thing to not talk about in polite company, what was that? ;-)