Corporate tax rates cuts are the holy grail of the supplysiders,
I will, since I have the data sitting here in my statistical software, throw employment growth, the tax rate, real GDP growth (to control for the cycle), and the corporate bond rate (Moody’s Baa) into a vector autoregression (a correlation exercise that allows you to test movements in one variable when you tweak another variable, controlling for other stuff).
Since you probably won’t/don’t read comments, here’s another interesting graph.
Now you may be asking yourself at this point, what has that got to do with Robert Reich’s missive on the Republican divide and conquer strategy,
Republicans told the working class that its hard-earned tax dollars were being siphoned off to pay for “welfare queens” (as Ronald Reagan decorously dubbed a black single woman on welfare) and other nefarious loafers. The poor were “them” — lazy, dependent on government handouts, and overwhelmingly black — in sharp contrast to “us,” who were working ever harder, proudly independent (even sending wives and mothers to work, in order to prop up family incomes dragged down by shrinking male paychecks), and white.
It was a cunning strategy designed to split the broad Democratic coalition that had supported the New Deal and Great Society, by using the cleavers of racial prejudice and economic anxiety. It also conveniently fueled resentment of government taxes and spending.
The strategy also served to distract attention from the real cause of the working class’s shrinking paychecks — corporations that were busily busting unions, outsourcing abroad, and replacing jobs with automated equipment and, subsequently, computers and robotics.
But the divide-and-conquer strategy is no longer convincing because the dividing line between poor and middle class has all but disappeared. “They” are fast becoming “us.”
Ahhh- as you see they are one and the same thing!
On the bright side, I’m glad Larry and Art have some friends, because after what they’ve done to this country they really need pork chops tied around their necks and buried in ant hills. (You were expecting dogs?)