Kansas Economy Doing A Fantastic Rebound From Brownback Economics
Jul 11, 2019 14:00:49 #
The country needs to pay attention to this, it has real world examples on a smaller scale of how economies react to policies that are wrong and the response that can be had when reversing and going a direction that works.
The Kansas Brownback model was supposed to jump start the state's jobs and economy...it was a miserable failure, neither happened. It was enough of a failure to put Kansas near the bottom of the list in terms of the state's financial ranking.
The state had a deficit of hundreds of millions of dollars...it now has a budget surplus.
Republicans were quite vocal about what was going on that reflected their rhetorical republican beliefs that sound like the same exact beliefs reflected in federal financial and tax policies. According to republicans the state didn't have a tax revenue problem, it had a spending problem.
So here we have proof that when the government has a deficit, lowering taxes for the wealthy has the opposite effect of the healthy economy and jobs being sought. Kansas has reinstated taxes and dramatically improved their economy and jobs situation, they in fact now have a budget surplus.
In any intelligent business world we would be looking at the factors that decimated their economy, and pay closer attention to what worked to turn it around.
Clinton raised taxes and turned the country's economy around, adding 25 million jobs...Bush lowered taxes and virtually destroyed the economy with a $1.4 Trillion deficit and lost over 20 million jobs.
Now we have a president trying the same failing tax cuts that have never proved to work the way they are supposed to in theory, and the deficit is headed right back where it was when Bush left office. We shouldn't have to wait for an e******n to put dems in power, this administration and the GOP should be able to look at two decades of history and act accordingly, which would be to raise taxes for the wealthy, not cut them.
Oh, by the way, Kansas has a neighboring state with almost the same exact economical dynamics, Brownback wanted them to adopt the same tax cut strategy that destroyed their economy which they refused to do. That economy stayed strong while the Kansas economy tanked.
The Kansas Brownback model was supposed to jump start the state's jobs and economy...it was a miserable failure, neither happened. It was enough of a failure to put Kansas near the bottom of the list in terms of the state's financial ranking.
The state had a deficit of hundreds of millions of dollars...it now has a budget surplus.
Republicans were quite vocal about what was going on that reflected their rhetorical republican beliefs that sound like the same exact beliefs reflected in federal financial and tax policies. According to republicans the state didn't have a tax revenue problem, it had a spending problem.
So here we have proof that when the government has a deficit, lowering taxes for the wealthy has the opposite effect of the healthy economy and jobs being sought. Kansas has reinstated taxes and dramatically improved their economy and jobs situation, they in fact now have a budget surplus.
In any intelligent business world we would be looking at the factors that decimated their economy, and pay closer attention to what worked to turn it around.
Clinton raised taxes and turned the country's economy around, adding 25 million jobs...Bush lowered taxes and virtually destroyed the economy with a $1.4 Trillion deficit and lost over 20 million jobs.
Now we have a president trying the same failing tax cuts that have never proved to work the way they are supposed to in theory, and the deficit is headed right back where it was when Bush left office. We shouldn't have to wait for an e******n to put dems in power, this administration and the GOP should be able to look at two decades of history and act accordingly, which would be to raise taxes for the wealthy, not cut them.
Oh, by the way, Kansas has a neighboring state with almost the same exact economical dynamics, Brownback wanted them to adopt the same tax cut strategy that destroyed their economy which they refused to do. That economy stayed strong while the Kansas economy tanked.
Jul 11, 2019 16:36:03 #
Jul 11, 2019 22:57:50 #
woodguru wrote:
The country needs to pay attention to this, it has... (show quote)
It would work if they employed the Keynesian policy of priming-the-pump where the government borrows massive amounts of money and spends it liberally. As is, they are only following half of Keynesian recommendations which is why it failed. And note, under Reagan, Bush, and Trump where tax cuts were made they were coupled with massive debt which was the actual driver of the economy...
Jul 12, 2019 11:51:28 #
PeterS wrote:
It would work if they employed the Keynesian policy of priming-the-pump where the government borrows massive amounts of money and spends it liberally. As is, they are only following half of Keynesian recommendations which is why it failed. And note, under Reagan, Bush, and Trump where tax cuts were made they were coupled with massive debt which was the actual driver of the economy...
Infrastructure spending puts people to work and generates taxes and spending revenue at a local level...
the industrialists that helped rebuild the country had no problem with 80% taxes on millions of dollars that they were generating from the government putting people to work.
The problem with GOP tax cuts that benefit the wealthy is that their windfalls do not go to either their workers or the economy, stock buy backs simply add to the future market crash by funneling the money out now that will disappear as paper losses later.
When taxes are raised for corporations it forces them to buy equipment and hire people for R&D rather than pay taxes on profits. Lowering taxes gives them free money that goes into pockets
Jul 13, 2019 16:43:02 #
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