Friday, November 4, 2011
Republicans block infrastructure spending bill
Republicans blocked an infrastructure spending bill that was part of Obama's American Jobs Act. The reason for their opposition? A 0.7% surtax on people earning over $1 million per year.
The problem is not with the Republicans, who have clearly shown that they don't give a crap about people who are not millionaires.
The problem is with the Democrats, who are divided and continue to believe that taxes fund spending. Their "fairness" rationale for raising taxes is just not working. If they understood MMT, they would say that the spending needs to be deficit spending, not "paid for" by any new taxes and that the deficit is too small and show, with evidence, that the deficit has added to income, savings and wealth of the private sector all the while as interest rates have come down.