Once upon a time a husband and wife owned a wonderful goose that laid a golden egg every day which made them very rich. One day the wife said, ” Just think, if we could have all the eggs inside the goose we would be richer faster.” “You’re right”, the husband said, “We wouldn’t have to wait for the goose to lay her egg everyday.” So they killed the goose and cut her open only to find she was like any other goose inside. She had no golden eggs inside her at all, and the husband and wife had no more golden eggs.
Republican economic theory holds that you give taxpayer money to the wealthy and corporations in the form of tax breaks, the wealthy and Corporations will invest that money and create jobs and the profits from that investment and the salaries from those jobs will benefit everybody else and the economy will grow. Since President Reagan this idea has been the guiding principle of our economy.
Republican Presidents have tried to make this work for 40 years with absolutely zero success. Mr. Romney is nothing more than another try at making this idea work. A wealthy person is not going to build another factory, or mall , or eatery if there is not a demand for these things or a chance these investments will be successful. A person only invests or Corporations expand if they are reasonably sure of the demand for that good or service.
The opposite to this ‘supply side’ idea is demand driven growth. Put money in the hands of those who will spend it and the demand created by the ability of people to purchase goods and services will grow the economy and benefit all. It’s a purchasing power investors will rush to satisfy. Our forty years of flat wage growth of the middle class, the real engine of economic growth, has decimated their buying power. People can’t afford to take the family out to dinner now days cause both parents are no longer working to get ahead but just to make ends meet. There isn’t enough money left over at the end of the month to go out on! By cutting salaries to the minimum and shipping the jobs to where even lower salaries can be paid, businesses have cut off their noses to spite their faces.
Republicans over the last 4 decades have, instead of waiting for the great middle class goose to create the golden egg of demand for goods and services, basically killed the goose to get at her eggs.