Only demand by the consumer will heal our economy

Dear Editor:

Conservatives continue to exult in their 2010 election victories which they evidently believe licensed them to do everything from outlawing collective bargaining, to cutting Medicaid/ Medicare and Social Security, and, to their baffling conviction that the middle class should believe conservative theory that the economy will be healed only if corporate taxes and taxes on the wealthy are reduced.

Only one thing will heal our economy: that is demand by the consumer.

Reducing taxes does nothing to increase demand. Businessmen are not stupid enough to invest job-creating money where there is no visible profit, where there is no demand in sight; first the demand, then the investment. One way to do that is to invest in infrastructure. It puts money into the economy and that money, in the hands of consumers, creates demand.

Reducing taxes does only three things: it robs our governments of very badly needed revenue, it allows the already rich to get richer and it allows corporate America (like GE) to completely avoid tax obligations.

Promoting savings in government by cutting social programs, K-12 education, and ending collective bargaining, is like killing the kitchen mouse with a stick of dynamite. There is no need to go totally berserk. There was no 2010 mandate for Conservatives to run amuck with everything that tickles their fancy.

The 2012 election will likely prove that middle class Americans and Minnesotans are now sick and tired of, just say no, do-nothing, foot-dragging governments, sick and tired of being told that reducing corporate taxes and taxes on the wealthy will result in a healed economy, and sick and tired of being told that they (alone) must sacrifice. The current Republican agenda is a one-way ticket back to the 19th century.

 

Dave Skeldon

Bradford

 

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