Think of it this way: A trillion dollars in Cayman Island bank accounts is like static energy, it has potential but currently is producing nothing. A trillion dollars injected into the domestic economy in the form of middle class capitalization, is like kinetic energy, producing positive outcomes. The current situation is not unlike that at the time of the Great Depression. The money is out there. But, it is just sitting, doing nothing. Keynes had an answer. He made it in the interest of those with money to spend it in the domestic economy. It was taxing the hell out of them then giving them tax breaks for spending their money in ways that grew the economy. It was a bulky and complicated system, but it produced great wealth and a vibrant middle class. What we have now is the sort of end of the line started by Reagan. Trickle Down has dried up the kinetic currency that fueled a capitalist economy and created a capital-less economy.
Posted on: Thu, 05 Jun 2014 04:06:17 +0000
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