Mr. Allen Litten apparently has his “facts”: here’s some, compared to the Republican party line of the past 50 years.
1. “America needs lower taxes to foster growth.” Fact: There has been zero positive correlation between lower tax rates and the rate of new jobs creation and strength of the economy. It has historically been strongest during periods of higher taxation.
2. “The current era of government deregulation has benefited the mass of American consumers.” Fact: From 1980 to the present, the median family income, adjusted by inflation, grew only one-fifth as much as in the previous thirty years, an era marked by both stricter financial regulations and much higher taxes.
3. “Corporations are job creators needing further tax incentives to enable a stronger economy.” Fact: The amount of cash reserves held by American corporations as a percent of total assets is at a 50-year-high. They’re issuing record profits, leading to all-time high stock market indices. Yet, these companies in the past decade have outsourced overseas an additional 1 million jobs for a total of 4 million in the past few decades.
Our economy would prosper far more rapidly if Paul Krugman’s views received wider acceptance.