• JKB

    Remember when they ridiculed Reagan for trickle down economics.  Some equating it with a being urinated on.  Well, turns out when things go to (#2) it’s more of a flash flood.
     
    Sad for the those who want to bring the joys of socialism to America, the fact is you have to have capitalism to support socialism or even social welfare.  Unfortunately, the social welfare had found that it can exceed the capabilities of the capitalists to feed it.
     
    It was so simple.  Back in the ’20s and ’30s, the socialists (and communists) were fairly successful in distributing the wealth while corralling the productive.  But we now have just-in-time capitalism in that means of production are mobile, no longer tied to resource exploitation, agriculture, or large capital outlays for plants and facilities.  You can de facto nationalize dying industries (GM) but the agile growing sectors can roll with the punches.  Make them nervous about putting any more capital in an area and the cashy taxes that sector provides dries up with the capital shifting like water to a less obstructed route.  You can make a man work in a steel mill producing off the innovation created by a free man in the past but you can’t beat an iPod out of him.

  • BrianE

    Just one more indicator of how bad the economy is.
     
    Corporate tax receipts have fallen significantly as well as personal.
     
    Obama’s 10 year budget will add $9 trillion to the national debt. We are already at 90% of debt to GDP and will cross the 100% threshold sooner than thought.
     
    Obama’s budget plan also includes significant tax revenues (approx $700 billion) from Cap and Trade legislation, so what’s the chance the democrats are going to pass on that one.
     
    In case you were wondering about the Greece bailout and its implications, I suggest you watch the following video. It will make it crystal clear.
     
    http://www.abc.net.au/news/video/2010/05/20/2905304.htm

  • BrianE

    There is an escape clause to the EU bailout package if it is deemed illegal or unconstitutional in any member country. A suit has already been filed in Germany.
     
    There may end up being several currencies in Europe– one by the prosperous countries and one for the profligate. I wonder how that’s going to work out?

  • http://ymarsakar.wordpress.com/ Ymarsakar

    Obama’s doing well wrecking the economy. I’m sure he’ll declare Emergency Rule sooner or later. He just needs a huge terrorist attack to be successful.