Robert Reich's View Of The US Economic Situation

[Richard]

Robert Reich offers an explanation of the American economic situation in 2 mins 15 secs.

http://www.youtube.com/watch?v=JTzMqm2TwgE

And so it goes...

Richard

[Dusty]

Outstanding post, Richard!

lol "...much of their income is capital gains; subject to only a 15% tax."

He could have cut the whole thing down to about 2 seconds flat.

[mark46th]

One of my liberal friends posted this on their Facebook page. She thinks Reich is Mr Wonderful. I just can't believe the crap they believe to be true. What is ironic is that most of them are well off, not one of the evil super rich but very comfortable. This same one was bragging she had just gotten a job on a congressman's staff. She was all excited because she was eligible for the same healthcare program as members of Congress. I guess some of us are a little more equal than others...

[Paragrouper]

Connecting dots is fun! and you can connect them anyway you want!

Taxes were slashed in the early eighties, and our economy doubled.

See how easy this is!

I think he left out a few key dots though.

[Kai]

So, according to Reich, the cause of the deficit is that taxes on the wealthy are too low -- and the cause of divisiveness in the middle class is the struggle over the leftover scraps.

Funny how there's no mention of excessive government spending or cronyism. Sounds like an attempt to create more of the divisiveness that he is supposedly arguing against.

Then the idea that the capital gains tax is supposedly too low. There's zero capital gains tax in New Zealand. It's great for the middle class, in part because it means there's no tax when you sell your house.

[Scimitar]

OK Mr Reich, I'm no economist but I sure can tell when someone's got their head up their ass.

Sorry about all the numbers fellas

DOT 1

"Since 1980 the American economy has doubled in size"
Sure ok GDP per Capita weighted for inflation has increased 90%
2010 = $49,673
1980 = $26,111

"But adjusting for inflation most peoples wages have bearly increased"
Really?

Average Income increase weighted for inflation
Quarter = 1980 -- 2010 -- %

Bottom Quarter = $14,896 -- $20,453 -- 37%
Mid lower Quarter = $27,664 -- $38,550 -- 39%
Mid upper Quarter = $42,562 -- $61,801 -- 45%
75th - 95th Precentile = $52,210 -- $80,000 -- 53%
Top 5% = $99,719 -- $180,001 -- 80%

So 95% of Americans on average have seen a 43% increase in income when compared to 30 years ago (with a 16% spread).
I don't tend to rate 43% as a "bearly increased".....do you?

Also if you take into account the increase in married woman in the work place since 1980, we're looking more at the average 95% of Americans earning an increased 48% when compared to 1980 (with a 26% spread).

But OK so 52% of the GDP increase since 1980 IS going to the top 5%, we'll give you that one too. Try not to over simplify things next time OK? We can make 1+1 = 3 just as well as you can.


DOT 2

"Almost all of the gains have gone to the super rich"
Firstly that 90% gain in relative GDP in the last 30 years has not ALL gone to the super rich, only half of it did and weren't they the ones who created that 50% GDP increase anyways, so shouldn't they keep it? Oh wait you're a communist, I forgot.


DOT 3 and 4

"All this money....has given the super rich....political power....to lower their tax rates" "This means huge budget defecits"
Really, does it?
So let's look at the tax revenue as a percent of GDP
1980 = 31.8%
2010 = 28.7%

Man that is one huge 10% drop in taxes! and if you look at 2011 its projected to only be 6% drop compared to 1980.

So if it's not tax breaks that are causing the defecits, what is?

Government expenditure per capita weighted for inflation
1980 = 8,805
2010 = 19,648

Holy Crap a 123% increase in spending per person weighted for inflation.

And guess what it's not going too Defence either
Defence Spending compared to GDP / % of total govt expenditure
1980 = 6.0% / 17.9%
2010 = 5.8% / 14.6%

That's right, relatively we are spending less on defence then we were in the middle of the cold war in 1980.

Mind you we have seen an increase in Defence spending since 9/11 of 3.6% to 5.8% of GDP, compared to a post Korea era high of 10.4% in 68, what was happening in 68 again...? But I digress.

"Tax revenues are down to less then 15% of the total economy"
Sorry chief but the OMB says 28.7%, mind you you're right it hasn't been this low since the late 50s, so I guess one out of two aint bad.

And Dots 5 & 6 are just nonsense, plain and simple.

Although I do agree with him that a strong middle class is important, he's essentially saying that we're being striped to death by the ultra rich, when actually we're being taxed to death by those in government to "over help" the poor.

And here's the kicker folks, if we add up The budget increases each year compared to who was in control of the budget what do we get?
Republicans = 36%
Democrats = 64%

So basically the Dems are responsible for 64% of all the bugetary increase in the last 30 years.

hmmm.

S

[incarcerated]

At the height of the war in Iraq, I heard Reich speak to an audience of about a thousand+ people. He told us that due to his short stature, he was too small to serve as a Tunnel Man in Viet Nam, and had to take a different assignment.

[Paragrouper]

Originally Posted by incarcerated

At the height of the war in Iraq, I heard Reich speak to an audience of about a thousand+ people. He told us that due to his short stature, he was too small to serve as a Tunnel Man in Viet Nam, and had to take a different assignment.

Yeah, college, up till about 1973--then off to clerk for the US Court of Appeals, 1st Circuit, later through a number of positions in the Federal Government until he found his true calling--UC Berkley.

Hard Times.

[mark46th]

What outfit was Reich with in Vietnam?

[Richard]

Ray Stevens' take on it all.

http://www.youtube.com/watch_popup?v=J6TcpfBHlbs

Richard

[rdret1]

Originally Posted by Richard

Ray Stevens' take on it all.

http://www.youtube.com/watch_popup?v=J6TcpfBHlbs

Richard

Ol' Ray always did have a way of cutting to the heart of the matter.