I’ve seen the Republican agenda, and I’ve heard them talking tonight on and on about what they are going to do. Trust me, nothing that they are going to do could possibly have a good affect on anything important, much less the economy.
Tons of tax cuts. This will blow up the deficit they hate way worse than before.
It won’t help the economy because the economy is suffering from lack of demand. Business is already sitting on a record mountain of cash. They don’t need any more of it. Giving them more won’t make them hire one more worker. The problem is lack of customers. More supply side (neoclassical) economics won’t do anything to solve that.
The lack of demand is due to the economic crisis. It’s also due to a 35 year war that the Right has waged on working people via outsourcing, union busting, Hindu 1-B and other guest workers, and mass immigration, legal and illegal. They’re crushed the American worker, smashing his wages and income. It’s classical capitalist class war. As Fordists would argue, this is having its predicted effect in that workers can no longer afford to buy the stuff that business is selling.
There has also been a mass transfer of income to the well off. The top 10% of the income earners now spend fully 1/3 of all US consumer spending. This is the 3rd World model of economic development, where a tiny elite is the economic engine for the whole country, and everyone else festers in some shantytown. Good luck with that model.
Cut government spending. This is retarded. In the US, government spending is 20% of GDP. By cutting government spending, you cut GDP by definition. Get it, idiots? Cutting spending in the middle of a downturn worsens the downturn, resulting in a recession or depression. Expect that to occur if spending is heavily cut.
Pledge to work across the aisle. The Republican Party’s goal in 2008 was to do everything possible to make sure that Obama would not be elected in 2012. They will continue to do this. They will oppose everything that he will try to do. If he tries to do rightwing things, they may go along with him, but that’s dubious. Look forward to 2 years of total gridlock.
The Capitalist Shit Market, I mean the Capitalist Stock Market, rallied on the elections not because Republicans were going to win but because a Republican win would mean a gridlocked government that is so paralyzed it can’t do anything. All of you who love the stock market or the US corporate class so much ought to think about that. The US corporate class, via its institution, the stock market, wants a gridlocked state that does as little as possible. So those of you who feel that the government ought to do something (like “create jobs”), ought to rethink your cheering on of the US corporate class or the US stock market.
You heard that right. Business wants a government that does nothing. Capitalists are wonderful people!
Get rid of regulations on business. Business is regulated, in general, in the interest of consumers, workers, society and the environment. By deregulating, you by definition harm consumers, workers, society and the environment. Because the economic crisis is due the financial mess, not lack of regulation, deregulation will do nothing to help the economy. The economy will not improve until the financial crisis is dealt with. The other aspect of the problem economy is lack of demand. All the deregulation on Earth will not put one more penny in the hands of workers and consumers. It will enrich business, but business is already sitting on an Everest of cash. This will fail to help the economy.
Create jobs! The state cannot create jobs except through stimulus spending and deficit spending, which these shitheads oppose for ideological, not economic reasons. As we discussed above, all the tax cuts and deregulation on Earth will not create one job absent a solution to the financial crisis and/or measures to restart demand. The huge spending cuts they are advocating will by definition result in GDP loss and will actually cause loss of jobs, not job gain. Therefore, this will fail.
The entire Republican project cannot possibly help the economy because it’s not economics. Or rather, it’s bad economics. Better, it’s politically driven economics. It’s economic policy in pursuit of political goals such as gutting the state for ideological reasons and waging the class war of the top 20% (all earners earning over $75,000/yr) against the bottom 80% (all earners earning less than $75,000/yr. It’s the economics of economic destruction, not economic growth.