Tag Archives: regulation

Liberal comebacks to Republican lies

POSTED BY ORHAN

In a recent post, Robert Reich catalogs and rebuts the biggest whoppers spun by the Republicans regarding job creation:

“Cutting taxes on the rich creates jobs.” Nope. Trickle-down economics has been tried for thirty years and hasn’t worked. After George W. Bush cut taxes on the rich, far fewer jobs were created than after Bill Clinton raised them in the 1990s.

“Cutting corporate income taxes creates jobs.” Baloney. American corporations don’t need tax cuts. They’re sitting on over $1.5 trillion of cash right now. They won’t invest it in additional capacity or jobs because they don’t see enough customers out there with enough money in their pockets to buy what the additional capacity would produce. Florida Governor Rick Scott, for example, says his proposed corporate tax cuts “will give Florida a competitive edge in attracting jobs.” They’ll also require education spending be reduced by $3 billion. Florida already ranks near the bottom in per-pupil spending and has one of nation’s lowest graduation rates. If Scott’s tax cuts create jobs, most will pay peanuts.

“Cuts in wages and benefits create jobs.” Congressional Republicans and their state counterparts repeat this lie incessantly. It also lies behind corporate America’s incessant demand for wage and benefit concessions – and corporate and state battles against unions. But it’s dead wrong. Meager wages and benefits are reducing the spending power of tens of millions of American workers, which is prolonging the jobs recession.

“Regulations kill jobs.” Congressional Republicans are using this whopper to justify their attempts to defund regulatory agencies. Regulations whose costs to business exceed their benefits to the public are unwarranted, of course, but reasonable regulation is necessary to avoid everything from nuclear meltdowns to oil spills to mine disasters to food contamination – all of which we’ve sadly witnessed.

“Cutting the federal deficit will create jobs.” It’s not true. Cutting the deficit will create fewer jobs. Less government spending reduces overall demand. This is particularly worrisome when, as now, consumers and businesses are still holding back. Fewer government workers will have paychecks to buy stuff from other Americans, some of whom in turn will lose their jobs without enough customers.

Reich calls on the President to refute these claims loud and long, before they become conventional wisdom. He can’t understand Obama’s silence in the face of the Republican onslaught.

Reagan – again

Yup. Recently read Gary Willis’ Bomb Power. (I didn’t finish it – by the middle I was skimming but not because it isn’t a superb and important book, which it is – but because it was overdue at the library and not renewable.)

But to the Reagan reference – this is a difficult time for my country and a big part of our current crises can be traced to regulatory failures. And as even children know, the dismantling and neutering of the regulatory apparatus began aggressively in Reagan’s administration. Clinton stopped the bleeding, but he didn’t do much to strengthen its bite – then George W. picked up where Reagan left off but with more enthusiasm. Wherever his administration was stymied by existing legislation, they got around that by installing lobbyists and industry insiders into the agencies they were charged to regulate. So they didn’t. And that was that and here we are.

BP gas stateion - small type says: You are responsible for any spills.

Willis notes the successes of Carter’s enforcement of existing legislation and then the addition of the 1978 Energy Act, created in response to the ‘oil shocks’ a few years earlier.

“Not surprisingly, it all worked. Between 1975 and 1985, American passenger vehicle mileage went from around 13.5 mpg to 27.5 mpg  – which helped to creat a global oil glut from the mid-80’s to the mid-90’s, which not only weakened OPEC, but also helped to unravel the Soviet Union, then the world’s second-largest producer . . . Then Reagan declare government to be the problem, ignoring the very recent and succesful ‘solution’ . . . He began by systematically dismantling his predecessor’s energy program. He removed the subsidies for wind and solar. So technology pioneered by American companies and financed by American taxpayers was sold to foreign firms. He relaxed pollution and mileage standards. Reagan stocked the agencies with people who did not believe in what they did. They were there to gut what they were supposed to be promoting.

Reagan’s generally sympathetic biographer Lou Cannon said of this: “Overall, Reagan left a ruinous regulatory legacy.”

Thanks guys. We in western Florida, where the Wall Street crisis cut the value of our homes by 40% and who are now dreading the loss of our beachs AND our tourist fueled economy thank you.