Let’s face the facts. Our local governments are in a financial crises. With the loss of jobs, comes a decrease in State income tax revenues. Smaller State revenues means that there is less money to help struggling cities and towns. Add to this, the decrease in sales tax revenues that are the result of less purchasing power, and we have a State going bankrupt. Now, multiple this by the number of States near bankruptcy and we have a nation of the edge of becoming a third world country.
As States become poorer, they need to make cuts to their spending. One of the many areas where they choose to make cuts is in funding for education. That means that our children suffer by not receiving a full education. Poor education will not help these children when they become adults because they won’t be able to find a job that pays a living wage or better. Ignorance is NOT bliss. It leads to poverty. The greater the poverty, the closer we are to becoming a third world country.
Even though only about 10% of Americans are heavily invested in stocks and bonds, our economy is driven by the DOW. In order to grow, we need an economy based on jobs that produce goods. Our nation has been slowly losing its goods based economy. Instead, our economy is based on market gambling. There is no bartering for goods and services in this country. We can’t “take a chicken to the doctor” because banks won’t accept chickens as mortgage payments from the doctor. (I’m curious about this “chicken”. Is is a live chicken or a dead chicken?)
Do you see the pattern? It a vicious cycle, one that Republicans claim can only be fixed by cutting taxes which decrease revenues. Understand, the taxes that get cut are the taxes to the richest 1% of Americans and the services that get cut are the services needed by the other 90%. The Republicans and Tea Partiers support Reagan economics. It was during Ronald Reagan’s presidency, when the decline in the middle working class started.
The bottom line is this… we need jobs based on goods that pay a living wage or better so that the States and local municipalities can collect the revenue needed to keep our governments functioning. This includes ample money for police, firefighters, educators, libraries and infrastructure repair and maintenance. More tax cuts for the rich will not produce jobs and will not bring in more revenue. Instead, it starves the masses.
One question before I end this thread, how is that “trickle down” economics working for you?
One reply on “On Becoming A Poor Nation”
Also, these geniuses forget Reagan had to RAISE taxes because his voodoo economic plan didn’t work.
Still won’t. Never will.