Does anyone realize that the Republican talking points don't solve anything?
Republican talking points:
#1 Deregulation - Deregulating the banking industry is what caused the Wall Street collapse in the first place. They were insuring high-risk housing loans. Except, in order to escape insurance regulations, they called it "Credit Default Swaps". Deregulation is letting the kids run wild in the candy store.
#2 Tax Cuts - Ah, the phrase Republicans wake up with in the morning. Virtually all economists agree that tax cuts will not jump start the economy (and it definitely will not help the budget deficit). Give companies all the tax breaks you want. Right now, they have huge reserves of capital and they will only do something with it (like hire people) when it suits them - and not a minute sooner.
#3 Drill for oil - Um, the fact is that the oil supply is unchanged. There is plenty of supply. The reason prices are high is because of "uncertainty" and oil market speculation. You can drill all you want, gas will still be $3-$4 a gallon if speculators have their way.
#4 Flat tax - See #2 above. And congressional studies show that a flat tax would not make a difference in the overall cost of products nor would it lower the effective tax rate for most people. You're simply rearranging/shifting the source of taxes around. Economics 101: Anything that artificially raises prices (like a consumption tax) will discourage consumption (i.e. people will spend less).
#5 No Bailouts - Without the Wall Street bailout, many, many more financial institutions would've imploded very quickly and many tens of thousands of people would've lost their jobs. There literally would've been no money to lend out and Ben Bernanke (who studied the Great Depression all his life) said it would've been worse than the 1930's. (Read or watch "Too Big to Fail").
These are the talking points that all the Republican candidates keep endorsing (that and calling Obama a 'failure' without an explanation). Yet, they don't solve a darn thing.
Because I can: I know you didn't bother to read it because you're a typical trailer park conservative: You're too lazy to read or stay informed, you just listen to your side (on the radio) and get spoonfed what to believe. That's why none of this makes sense to you.
- Uncle PennybagsLv 79 years agoFavourite answer
#1 Deregulation - Making business climate friendlier helps keep jobs here in the USA vs. going overseas where the climate is friendlier. Some regulation is needed. Too much is harmful. Dems complain about all the jobs going over to China. This is one of the reasons they go there.
#2. Tax Cuts - Increases money in all our pockets, so we can spend, save or invest as we choose. Helpful to the economy. Dems hate that because it means the Democrat Elite in government don't get to choose how that money is spent.
#3 Drill for oil - Helps us spend our energy dollars here the USA, vs. the middle east. Helps reduce high energy prices by increasing domestic supply.
#4 Flat Tax - OK, I'm with you here. I'm not a supporter. But another thing the GOP supports is reducing tax rates and paying for them by eliminating loopholes. Makes taxes simpler, reduces rates, and keep revenue the same. And like Econ 101, any time you penalize some activity, like creating wealth, you'll get less of that activity as well.
#5 Bailouts - This is a tough one. Would we have been better off if allowing some banks to fail due to their idiotic policies? Maybe. I don't know. As for GM, GM could have gone through Chapter 11, restructured, shed debts and unsuccessful product lines, renegotiate union contracts, and emerged as a healthy company. Instead we got snookered on bailing out GM. $50 Billion used to give Obama control of GM, screw creditors, and payoff Obama's biggest supporters, the unions, by giving them part of the stock ownership while the gov't took the rest.
UPDATE: McNamara is absolutely right. What banking deregulation? The only deregulation I know of is the repeal of the Gramm–Leach–Bliley Act, which if you look at it, had 3/4 of Dems in Congress voting Yes, plus President Clinton signing it.
- McNamaraLv 79 years ago
1. There was no deregulation of the banking industry. You're dreaming. By the way, the government was buying up those subprime-tainted mortgage bundles via Fannie Mae and Freddie Mac and practically mandating subprime lending through the Community Reinvestment Act, so don't act like this is some purely private sector venture.
2. "Virtually all economists agree that" (blah blah blah)... Also false. You're just pulling all this out of your a$$, aren't you? Tax cuts free up money that CAN help businesses afford to hire new people; that is, when they aren't holding back out of fear of what unpredictable and destructive intervention the government will undertake next.
3. Yes, uncertainty and speculation are high. That's all the more reason to drill for more oil. More supply means lower prices. That's Econ 101, genius. And Obama's idiotic moratorium coupled with the butt-dragging on the permit process didn't help.
4. I don't hear many Republicans calling for a flat tax. Anyway, you missed the whole point behind its advocation in the first place. The point is that our current system is incredibly wasteful, badly flawed, loses hundreds of billions of dollars a year in compliance costs alone, is used as a political tool constantly, is stupidly complex, and punishes success and entrepreneurship. As for the proposed consumption tax replacement -- and yes, it would REPLACE our whole tax structure -- we already have sales taxes IN ADDITION TO income taxes and numerous other taxes. And if a consumption tax discourages consumption, doesn't income taxation discourage earning an income? You can't have it both ways.
5. Absolutely false. And Ben Bernanke is a Keynesian and therefore an economic ignoramus. Letting the institutions fail would not have been the Armageddon you claim. The financial industry is larger and more diverse than you realize. Let them fall and the same thing will happen that always happens: their assets are liquidated and sold off to other companies and much of their employee base is hired by competitors and the asset buyers. Lesser known and smaller companies step up and life goes on. Everyone's acting like a failing company just vanishes into nothing. It doesn't. Besides, those particular companies got bailouts as rewards for their generous campaign donations, not because all of them necessarily would have completely collapsed.
- Anonymous9 years ago
Those are popular beliefs.. for people with a 3rd grade education. However, people who are actually intelligent enough to understand the issues.. say something very different.
1) De-regulation did NOT cause our economic problem, over regulation did. This country passed laws that forced banks to make loans to people who weren't likely to repay them. We forced banks to accept welfare checks, unemployment checks and food stamps as "income" when determining loans.
2) No, virtually all economists say that lower taxes DO increase economic growth. That's not really up for debate, and you look like an idiot for denying it.
3) The oil supply is unchanged.. because we haven't increased drilling. Really.. that's kind of a no brainer. Even you should have figured that one out. But, with a tiny bit of education you'd be able to understand the laws of supply and demand. And yes, it is the driver of all oil speculation.
4) No, congressional studies do NOT show that a flat tax wouldn't make a difference in the cost of products.. because it was never meant to, and so no study was ever done on it.
But hey, if you were trying to make yourself look like an idiot.. you've done a great job.
- Anonymous9 years ago
Deregulation: Regulators didn't catch it then. Why would more regulation fix it in the future?
Tax cuts: Companies aren't hiring because of uncertainty. Just like #3.
Drill for oil: Speculators don't make money keeping oil high. They make money selling oil futures when they get high.
Flat Tax: The flat tax expands the tax base. Plus it alleviates the burden of chasing individuals and corporations who avoid paying taxes. Everyone pays. No exception.
No bailouts: While it is true many would have lost their jobs, those jobs would have come back sooner without 14 trillion in debt hanging over the nation's head.
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- S OLv 79 years ago
And yet here we are, lowest taxes in decades, de-regulating everything, high unemployment, wages declining, and a disaster of an economy... with the one shining light being that we can all take solace in, is knowing that at least the wealth among the wealthiest Americans, has managed to expand dramatically over the past 3 decades.
And now we have Republicans continuing to call for America to do more of the very same things that have created this mess over the past 3 decades. Surprise, surprise.
- Anonymous9 years ago
I think you are wrong it solves a lot of problems for wealthy people. With the dollar value declining your labor is also declining in value therefore making you work more for less...
- Anonymous9 years ago
I read your question what a waste of my time.
- Anonymous9 years ago
The republican positions....
1. are backed by HISTORIC SUPPORT that they work
2. are based on the principals that built this country
3. are 10000X better than blindly changing "hope and change" and "yes we can".
the Republicans are laying out ACTIONABLE plans. All we get from Democrats are generalized statements that have no substance, such as "We can DO BETTER"... "I'll have a COMPREHENSIVE plan".... "we will do the RIGHT THING"....
- scott bLv 79 years ago
Everyone but the Republicans....