"Cut Spending" seems to be stupider then ever...

[LoveLife&Laughter]

Reinhart And Rogoff's Pro-Austerity Research Now Even More Thoroughly Debunked By Studies

The Harvard economists have argued that mistakes and omissions in their influential research on debt and economic growth don't change their ultimate austerity-justifying conclusion: That too much debt hurts growth.

But even this claim has now been disproved by two new studies, which suggest the opposite might in fact be true: Slow growth leads to higher debt, not the other way around. Read More

Why is common sense so hard to understand?  Is this a theory or ideology?

[Snagg]

It's neither - It's 100% pure bullshit.

First: Come up with a popular, predetermined conclusion. Second, bend or omit the facts until you have a "theory" that says what you want the "facts" to say. Third, ignore and/or dismiss all peer reviews or further investigations of your process that contradict your "findings", and insist that even though your numbers don't add up, they're still right. Fourth, collect a fat payoff from the tax-dodge think tank that commissioned you to lie your ass off in the first place. Fifth and last, flog your newfound notoriety for all it's worth (while it's still worth something), schmoozing the cocktail party circuit, Sunday-morning talk show circle-jerks and fraudulent-academic  "lecture circuit" gravy train while eager saps are still stupid enough to pay money to hear you keep telling the same lies.

Reference: Climate-Change Deniers, "Tax-Breaks-Pay-For-Themselves" troglodytes and "Saddam DID have WMD'S !!!" rat-bastards.

[ProblemAgain]

Study: Tax Cuts Might Drive Income Inequality After All

The gap between the rich and rest has risen fastest in countries where politicians have cut taxes the most.

Jordan Weissmann May 30 2013, 4:06 PM ET

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It's intuitive that the rich get richer when you cut their taxes. Still, economists have had a hard time proving that taxes actually cause rising income inequality.

But they might be getting closer. A new draft paper out this month from Thomas Piketty, Emannuel Saez, Anthony Atkinson, and Facundo Alverado takes a stab at making the taxes-inequality connection. As their graph below shows, there's a strong correlation between how much a country cut their top rate since 1960 and how much income went to the top 1 percent of earners.

There is an old argument that cutting taxes for the rich encourages them to work harder. But the paper's authors are skeptical of that idea. If low taxes on the wealthy made them put more effort into their jobs, we'd expect the countries with the lowest taxes to grow the fastest. That hasn't happened. Instead, wealthy countries have all been growing at about the same pace for the last several decades, irrespective of their tax policies.

Here's the alternative theory. If you cut taxes for the rich, they might not work harder, but they will become greedier for more take-home pay. When taxes were higher, a huge salary was less valuable, so maybe rich people shifted their attention to corporate expense accounts and other perks. But today, it's more worthwhile for executives, doctors, lawyers, and other professionals to bargain for the absolute highest pay package possible. In the case of CEOs whose bank accounts live and die by their company's stock performance, it's also become more important to focus on short-term returns, possibly at the expense of long-term investment. 

This is all highly speculative, of course. Other factors are also probably at play. The same politicians who cut taxes on the wealthy, the paper notes, also deregulated Wall Street, which has played a huge role in the income gap.  But the story does seem to dovetail pretty well with the era of soaring CEO pay and superstar salary scales in professions like law and medicine. The world's tax codes say greed is good. And the rich appear to have gotten the message.

[ProblemAgain]

http://www.theatlantic.com/business/archive/2013/05/study-tax-cuts-...

[ProblemAgain]

it is very similar to the republicans blaming the financial condition of detroit upon the democrats who have held office without bothering tpo look at all their fatcat republican corporate big business brethren who outsourced so many of the detroit area jobs in autoparts manufacturing , materials and finally entire automobile assembly to foreign countries leaving detroit with chronic unemployment.