Economies grow when recessions end. Your graph is useless data. The correct data is to compare that curve with those from previous recessions. The last recovery was one of the shallowest post war ones. Are you going to claim the last Bush tax cut saved us from recession or minimized it?
The correct economic policy is to lift all boats. Trickle down does not work when the economic growth generated from tax cuts is concentrated in the hands of the wealthiest fractions of a percent of the population with next to none to everyone else or used to invest over seas. Obviously the increased wealth is then used primarily to support further growth in industries only the wealthiest can afford like yachts, fancy cars, expensive jewelry, high cost call girls, etc. The reason that capitalism has been superior to communism is that people are supposed to be rewarded for hard work or innovation which motivates them to do more. Crony capitalism and kleptocapitalism are not nearly as effective or stable. Unfortunately that is what capitalism tends to evolve into as economic power gets concentrated in a smaller and smaller portion of the population. That's where the maxim the rich get richer and the poor get poorer come from. A free press and true democracy are the key forces that have balanced that trend in the US unfortunately they haven't been enough over the past decade. The pendulum always swings back though.
Regards,
Mark
Basic Econ
The whole thread (30 posts)
- WHAT industrial production?
- Buffett bolsters petard hoisting
- Bernanke and Paulson were touting the strength of the economy well into the recession.
- Fundamentally sound whiners
- Presuming we're going to HAVE a future. (n/t)
- Or another possiblity...
- Fundamentally sound whiners
- Bernanke and Paulson were touting the strength of the economy well into the recession.
- Buffett bolsters petard hoisting
