From what is called “the Laffer Curve”, named after a 1980s “trickle down” and "Supply-Side" economist Arthur Laffer, the nonsense-spinning Republicans latched onto the “trickle-down” theory as their excuse to cut taxes on the rich. Laffer, the economist, developed the "trickle-down" theory in 1979 and, beginning in the early-80s, the Republicans picked up the theory and used it as a cudgel. The very first massive tax cut for the rich occurred in 1986 and was signed into law by Ronald Reagan as top rates were cut from the max at 70 percents down to 35 and provided a massive benefit for the wealthy based on the "trickle down" theory. The main premise? The rich would sprinkle - like confetti - cash on the Middle Class and working families to lift up those of limited income and financially stressed to a new middle class rank at successful income levels. NONSENSE! The economic promise of a "trickle down" stimulus and expansion became a FAILURE. Revenue collections were reduced, the national debt shot up, and government programs were threatened with termination as a result of growing federal deficits. The Trump family smiled.... as their bank accounts bulged...
After all, the Republican Party historically represented the rich and corporate interests throughout the 20th Century while the Democrats supported initiatives and investments on behalf of working families, organized labor, and for programs that protected, uplifted, educated, and advanced opportunity for the poor in America. The FDR years, the Harry Truman, JFK, and LBJ years expanded opportunity, adopted social safety net support, educational advancement, voting rights, civil rights, and human rights programming in the Democratic years. Economic investments in infrastructure improvement and expansion in road and rail - similar to the Eisenhower (R) National Highway construction projects - expanded job growth and opportunity for American veterans returning from service during the wars - WWII, Korea, and Viet Nam. Home ownership grew as did the Middle Class. Healthcare was also a Democratic focus from FDR and Medicare, to LBJ and after in Medicaid - assisting those of limited or modest income and retirees receiving limited Social Security. 
The next series of Republican tax cuts resulted from the re-birth of “trickle down” in response to a mild tax increase on wealth signed by Bush I responding to mounting deficits, Defense Department needs, and to protect threatened cuts in Social Security and Medicare. Later, with growing deficit pressure in DC, by the time Clinton left office after two successful terms in building the economy and reducing deficits, Bush 2 promised and signed yet another “trickle down” tax reduction. Though not a massive tax cut, revenue loss and economic slowdown resulted in program and funding stress, as well as freezing or trimming program funding. One financial drain became the Middle East wars - Desert Storm I, Desert Storm II, and the initial wars in Afghanistan. Not funded by “revenue” increases but by a theft of Social Security cash assets with a long-forgotten promise to return the money borrowed from the Trust Fund to sustain the war, cash drain continues to this day. Repayment to the Social Security Trust Fund was never done.... The Bush II administration led to yet another economic failure and a severe recession. After a Supreme Court intervention denied Al Gore the Presidency.... and resulted in Bush II - Term II, the manufacturing sector crashed, especially the auto industry, layoffs suffered massive growth. Enter Barack Obama on January 20, 2009 with hopes and a plan for a better future in resolving the recession, saving the economy, restoring our nation, and curing our healthcare shortfall.
Obama, first elected in 2008 in the face of a steep recession, and re-elected in 2012 and serving as a two-termer, was universally blocked by the Republicans in the House and Senate. Then led by Magical Moscow Mitch in the Senate and the Tea party Caucus with Speaker Paul Ryan in the House, every Republican Budget adopted in the House, threatened or slashed social programs - including Social Security, Medicare, and Medicaid. Their “spin” was to reduce deficit growth by social program cuts that would support increased funding of military expansion in contracts for the development of and addition to military weaponry. In the early 1960s, Republican President and WWII leader Dwight Eisenhower warned us not to endlessly “feed” the “military-industrial complex.” But, from 1990 to present day, Republicans ignored Ike’s “Farewell Address.” ANOTHER FAILURE. And, the Trump family smiled..... as the bank accounts bulged....
With the exception of the narrow adoption of the AMA - "Obamacare" medical insurance coverage was expanded to tens of millions of Americans who suffered without health coverage. Lives were saved and more than 20,000,000 Americans covered. Other initiatives, including a Supreme Court nominee to fill an existing vacancy by Moscow Mitch, were blocked by McConnell and the House Tea Party Republican members who laid in plans to unleash America's wealth - both individual and corporate through campaign investments and "Super PACs" - to secure the Presidency and add to their control of the House and Senate come the election of 2016. After a decade and more of gerrymandering state and federal legislative districts, the "wealth control plan" jelled. And, with the election of Donald Trump came yet another raucous laughing fit as the income tax rates on the wealthiest folks and the taxes on corporate profits were slashed in half - 30% to 15%! Come 2017, wealth Republican investments were rewarded. Once again, based on the “trickle down” theory that repeated the failed argument that income growth and “release” from revenue collections would result in sharing new-found cash with those in need through job expansion (happened) and wage/earnings growth (didn’t happen), supply-side economics has failed. Obviously, a “rise” in the Middle Class and in working families did not take place.... and the minimum wage was not increased one dime. Instead, wealthy companies taxes were halved or eliminated, and the cash was used to buy-back their stock in massive numbers, increasing the stock price substantially, enriching the officers and the Corporate Board Members, enriching the wealthy with massive stock investments, and resulting in long lines at the yacht store. Another result has been a growing the chasm between rich and poor in this country - the greatest gap in more than 100 years. Here is an example..... Last year - 2018 - Amazon made more than $11.2 Billion in PROFIT in 2018 compared to $5.6 in 2017. PROFIT, not overhead outlay...., and paid no taxes at all - and, refunded $129 million withheld during the year! NO TAX AT ALL! And, now....a massive federal revenue shortfall and deficit growth to new record highs - $1 TRILLION DEFICIT IN 2019 ALONE! And, again, the Trump family smiled .... all the way to the bank.... Ever wonder why Trump will not release his tax returns? Why he and his family are fighting every subpoena to secure this information, personal or corporate, in every Court, state and federal? Well.... now YOU KNOW.
Trump argued that his "tax cut", again based on the old school "Laffer Curve" and Trickle Down economics plan - a plan that had failed over and over in the 1980s, the 1990s, and the 2000s - would eliminate the federal deficit through "seeding" economic growth and would result in increased federal revenue collections, based on the infusion of corporate cash and a giant tax cut for the wealthy. Investments would expand the economy, jobs, and revenue. Trump promised that such a plan would shrink the deficit down to nothing in just 4 years! Nevertheless, that TRUMP LIE number 15,403 resulted in a DEFICIT BLAST OFF over the last three years as the DEFICIT ROCKETED TO NEW HISTORIC HIGHS. This past year, the deficit surged and HIT A NEW DEBT RECORD OF ONE TRILLION DOLLARS FOR ONE YEAR - 2019. The Obama deficit in 2016 stood at $585 Billion - nearly 1/3 the deficit level compared to $1.4 Trillion in 2009 a 40% reduction by 2012 to $1 Trillion and down to $585 Billion in 2016. On the Trump-train in 2017 celebrating the massive tax cuts for the wealthy, while champagne corks "popped", and gold-laced parties of American Billionaires celebrated at the Mar-a-Lago Club, the federal debt deficit exploded in 2018 and 2019.... and saddled the nation... and the future .... with ever-growing Trump-created debt. Based on cash "gifts" to millionaires, billionaires, and high-wealth corporations, the deficit went through the fiscal roof! Moscow Mitch McConnell threatened Social Services - including Social Security, Medicare, and Medicaid - to reduce the deficit growth, infuse military contracts with borrowed cash, avoid infrastructure investments and projects as "too expensive", and, instead, build an unnecessary 3000 miles wall on the southern border. And, a continuous effort to reduce/eliminate healthcare benefits and other social supports for tens of millions of Americans in need goes on and on..... On the Trump Train... and at the Mar-a-Lago Club... the smiles grew into raucous parties and celebrations...... $500,000 for membership please..... And, the Trump family smiled.....
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| The Trump Administration, off the DEEP END, is sinking.... |
Stand Up! Speak Out! Resist! Persist! March On!
Bobby J
