Economic nonsense

Just today I heard someone praising the tax bill and the “job creators.” I can’t believe people are still falling for that economic nonsense. It has holes in it big enough to sink the Titanic. Briefly, it maintains that if the rich are given huge tax breaks, they will spend money on new investments which will create jobs.

Hole No. 1: Who says the jobs will be in America? Rich men might look around to new markets and cheap labor and do as Donald Trump did: Invest in projects in Saudi Arabia, China and Russia, creating jobs for Saudis, Chinese and Russians. America loses.

Hole No. 2: Even the most enthusiastic

advocates of this plan admit it will increase the deficit—the only disagreement is how much. Now the Chinese can buy our IOUs and our grandchildren can pay the interest with higher taxes. America loses.

Hole No. 3: That’s not how economics work. No one hires people because they have money. They hire because they need workers. If we gave that same money to the middle class, we would increase the market here, and more workers would be needed. They, in turn, would create more demand and encourage more jobs. That’s how an economy grows.

Hole No. 4: It didn’t work in the past. Reagan cut taxes on the rich and the deficit went up. Bush cut taxes on the rich and there was economic disaster in his administration. Clinton taxed the rich and we had a briefly balanced budget.

It is morally reprehensible in a democracy to pass a law giving more to the few who don’t need it and taking away from the many who do. What are laws for if not to help all citizens? The rich don’t need any more help. Why are we doing this? BARBARA J. TRUESDELL

Hot Springs Village