Post by ajohnstoneTax cuts reduces government revenue and leads to cuts in government
spending
Which if true would be the best argument for them but Congress doesn't
care if it has the money or not. They will continue to spend and it
doesn't matter which party controls it.
Post by ajohnstoneand with the US commitment to exorbitant defense budgets, then
there are the great number of subsidies to particular industries such as
fossil fuel and farming
I'm as much against corporate welfare as I am against all forms of
welfare. I am against any government program that takes money from some
people and gives it to somebody else to whom it does not belong. If I
robbed somebody at gunpoint and then donate what I took to a worthy
charity, I would still go to jail. For some reason we think it is
acceptable to do the same thing by force of law. I've never understood why
Robin Hood was considered such a heroic figure in lore. What's so heroic
about giving away other people's money.
Post by ajohnstoneso the the cuts which come are to what is termed
the social wage, state welfare payments and social insurance. Or shedding
government responsibility entirely by privatizing its role - which i guess
is a libertarian option you support although the lessons are here in the
UK, the government under Johnson is now busy re-nationalizing public
services.
I believe government should only spend money on things which benefit
everyone, not programs targeted to specific entities. The former would
include things like national defense, law enforcement, highways, etc. If
the federal government limited itself to only those things which the
Constitution authorizes it to do, federal spending would be decreased by
at least 80%. About ten years ago John Stossel did a report on 20/20 in
which he pointed out that for roughly the first 100 years of the United
States, the federal government spent an inflation adjusted $500 per
person. In actual dollars of course it would have been far less. By
contrast at the time the federal government was spending $20,000 per
person and I have no doubt the figure would be even greater today. What is
it that is so vital today that the people of the United States were able
to get along with for the first century of this country's existence. I'll
grant you that our position as a world superpower requires a great deal
more defense spending than what we did in the 1800s but even that could be
scaled way back if we would end our role as the world's policeman and
focus solely on our own defense.
Post by ajohnstoneI wish to avoid the pandemic time period which is indeed an aberration. I
also wouldn't think by criticizing Trump's failures, i am lauding any
Obama success. I think you know from previous posts, i consider both
pro-business but with diverging policies. Choosing between Republicans and
Democrats is merely trading one master for another (although can we say
Trump is a Republican, after all, at his insistance, they issued no
election manifesto)
I share your disdain for the two major parties but for much different
reasons.
Post by ajohnstoneYes we can bandy around conflicting economic statisics all day long and
cherry pick them. Many economists have made such a career from that but
here are some figures to challenge the Federalist
US manufacturing growth slowed to its lowest level in August 2019 when the
purchasing managers’ index fell for the first time since September
2009. So Trump failed to reverse the continuing decline in
manufacturing’s share of GDP.
Trees don't grow to the sky. No matter how well any aspect of the economy
is doing, at some point there will be a slowdown. A strong economy is
indicated by higher highs and higher lows. I would bet the low in August
2019 was much higher than the high for 2009.
Post by ajohnstoneFrom December 2016 to September 2019, nominal wages rose 6.79% from $22.83
to $24.38. But after factoring in inflation, average wages barely budged,
climbing just 0.42% in the period. Nominal wages have risen by an average
of 2.2% since Trump took office, but real wages fell 3.9% after adjusting
for inflation. The value of fringe benefits – including health
insurance, retirement and bonuses – declined by 1.7% during
Trump’s first three years. 1.9 million more Americans lack health
insurance coverage, raising the total to 27.5 million, i.e., 8.5% of the
US population in 2018.Real labour compensation, including fringe benefits,
has declined 4.3%. US labour share of nonfarm business income recovered
from a nadir of 52.4% in 2013 to around 57% during Obama’s second
term, labour’s share fell to 53% in 2018.
Inflation as it pertains to individual circumstances skews the reality. It
factors in a wide range of expenditures. Inflation doesn't cause and
increase in someone's mortage payment if it is a fixed rate mortgage and
in doesn't increase the amount of somebody's car payment. A .42% increase
is still signficant given that for decades, real wages had been in
decline.
Post by ajohnstoneJob growth has slowed with Trump’s trade wars, with significant
job losses in electorally key states. While 2018 saw 223,000 new jobs
created monthly, this average fell to 184,000 in the last quarter of 2019.
The 1.2 million ‘long-term unemployed’ (jobless for at
least 27 weeks) accounted for 19.9% of the unemployed in January 2020.
Again, trees don't grow to the sky. Booms don't last forever. Slow downs
are inevitable. Slowing growth is still growth and the growth rate
remained healthy until the pandemic hit.
Post by ajohnstoneThere are only a few Marxist economists and Andrew Kliman is one. The
liberal economists call for re-distribution of wealth.
AKA legalized theft.
Post by ajohnstoneThe common refrain
on the non-Marxist left is "tax the rich to pay for the Crisis they
caused". Are you surprised that a Marxist refute that assertion? Something
you can use when you argue against your run-of-the-mill reformist
Democratic progressive, JC.
Only mildly.
Post by ajohnstone"...it’s very dangerous to sow illusions that a fairer division of
the pie is going to solve the crisis. If the pie does get divided more
fairly and sends profitability down further, we get into a depression.
There’s renewed panic in the financial markets and there is a
virulent reaction, maybe even fascism. Working people need to be prepared
to confront that but they are not going to be prepared if they’ve
been led to believe that the trickle-up notion that what’s good
for the working class is good for capitalist America. It isn’t. So
people have to fight for concessions like hell, understanding that the
only real solution that’s going to benefit them is a new
socio-economic system, socialism, in which what’s good for people
and what’s good for the economy are not antagonistic but are the
same thing. But that’s not the system we have now. That’s
where we’ve got to go..."
Kliman advocates for socialism, not reforming capitalism as do liberal
"..As long as there is capital, what are actually in control are the
economic laws of capitalism. Individual capitalists, including individual
state capitals and worker-run enterprises, must submit to these laws. When
all is said and done, accumulation and economic growth under capitalism
depend upon the extraction of ever-greater amounts of unpaid labor, not
reforms that limit that extraction...’ In fact, such reforms could
make things worse ‘… under capitalism, a new economic boom
requires the restoration of profitability, but downward redistribution of
income will reduce profitability … By causing investment to fall,
downward redistribution could lead to a deep recession, even a
depression...’
So as you can see, i argue just as much with the left than with the right
applying Marx
Do you embrace the philosophy of "From each according to his abilities, to
each according to his needs."?
I'm still trying to understand your vision of a Marxist Utopia.
Post by ajohnstoneHowever, my personal slant on why the tax cuts of Trump did not have the
desired effect is that the re-investment by the American capitalists did
not go into restoring American industry but that hoarding took place -
look at the cash liquidity of corporations, what investment that happened
took place in new technology such as AI and automation and it led to
deskilling thus lowering wages, not a general rise for the low-paid , and
displacing secure stable jobs not creating new quality jobs.
What statists of all stripes fail to understand is that people of all
economic levels are going to act in their own self interest. They think if
they enact new rules, people are going to continue to act the same way.
That's silly. If the government zigs, they will zag. They will work around
any new government policies in order to best effect their bottom line.
That is true from the largest corporation to the poorest of the poor and
everyone in between. Government is not the solution. Government is the
problem.