Monday, October 24, 2011

The 6 Lies About The Economy Republicans Tell

Kevin Drum at Mother Jones sums up 6 fundamental lies about the economy that are demonstrably false.

I'll force you to click on the link to see why and how they are false (mostly actual data, studies, and historical facts), but I will summarize them here:

LIE #1: The stimulus failed. SUMMARY: It was too little, too late, but the people's whose opinions actually matter all agree it stopped an economic disaster.  See "Mistake of 1937" for what not to do, and why we are repeating it.

LIE #2: The deficit is our biggest problem right now. SUMMARY: With T bond interest rates near 0%, trust in America's ability to pay debts has never been higher.  Long term, yes, it's a problem.  Short term, worry about the economy.

LIE #3: Lower taxes are the best way to grow the economy. SUMMARY: No historical correlation to prove that is the case.  Last time taxes were raised (under Clinton), economy surged ahead.  Last time taxes were cut (under Bush), economy stagnated.

LIE #4: Regulatory uncertainty is clogging the economy. SUMMARY: No business owner who was asked agreed with that fact.  And, current administration has not been active at all in ramping up regulations in the business sector anyway.

LIE #5: Obama is debasing the dollar. SUMMARY: "Printing money" had no effect on dollar value. Exchange rates prove that.  (And, we should wish the dollar value would collapse, because the value of American exports would increase.)

LIE #6: If you unshackle the rich, they'll rev up the economy. SUMMARY: Rich people are more rich now than ever before and corporate profits are at record levels, but they are waiting for economic improvement to invest in or expand their business ventures.

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