Originally Posted by Rohirrim
Let's see: You set up a capitalist, consumer society. The point is for everybody to buy stuff to keep the whole thing rolling. Then, you take the majority of the wealth and give it to the smallest segment of that society by massively cutting their taxes. You discover that they don't spend much. They prefer to hide the wealth offshore and figure out new ways to dodge old taxes. They prefer sitting on the sidelines (on their bags of money) where it's nice and safe. Then, you discover that you need to tax the hell out of the rest of the people in order to keep the government ball rolling (you've still got unfunded wars, the wreckage from a bankster ponzi scheme, and whatnot you have to pay for), but you find out that when you do that, the largest segment of the society (you know, the ones you are relying on to spend in order to keep the economy going) stop spending what little they have. Then, the ones with all the wealth say that they would love to help, but they're not going to put their money back into the economy until things get better. Call them the "Have your cake and eat it too" crowd. The majority say they're not going to spend because they don't have anything to spend. Meanwhile, prices continue to rise because the people who are trying to make stuff and sell it, aren't making enough to stay in business. So they start cutting jobs in order to trim their costs and charging more for their products.
Meanwhile, the ideologues on the Right decide that what is needed now is austerity. The government debt they haven't worried about for thirty years, well, they're suddenly worried about it now. And they decide that now is the time for the largest employer in the country, the government, to start cutting jobs. They decide that now, when the need is greatest, it's time for the biggest cuts. When they were riding high, in charge of government, slashing taxes and regulations during the boom times, not one of them mentioned, "Hey? Wouldn't this be a good time to start reducing government debt?" Hell no. They were in the lead in the spending frenzy. Hell, they were driving the government spending bandwagon. Their hero, George Bush, was spending like a drunken sailor. Of course, if you listen to them, they're not responsible for anything. It's all the other guy's fault. Remarkable, ain't it?
Oh, and all that money offshore? They say the best solution for that is to give the rich more tax breaks and THEN they'll bring the money back.
See why I keep going back to Mad Hatter's Tea Party meme?