Of all developed countries, America self-invests the least because of tax cuts for the 1 percent

April 18, 2017 at 12:30 pm

As tax day (April 18) approaches, it’s interesting to consider the lie that America is “overtaxed.”

The average developed country reinvests 34 percent of its gross domestic product back into the country and its people.

As of 2014, America only invests 26 percent, which puts it ahead of Korea, Chile, Mexico, and exactly zero other developed countries.

What does this do?

Democratic capitalism: Freeing people from the corporate special interest definition of ‘corruption’

January 18, 2017 at 1:43 pm

Monument to the victims of capitalism in Montreal. (photographymontreal/Flickr)

This week someone asked me if I’d heard any questions about IDEA, the federal law protecting students with disabilities (the Individuals with Disabilities Education Act), during Jeff Sessions’ confirmation hearings.

I get these types of questions a lot because I write about politics. It’s kind of funny because I don’t think I know much about politics—at least not when it comes to policy details. I’ve had people tell me in response, “But I love listening to you talk. You know so much.”

Here’s a secret: It’s more important to know what you believe in—and how to talk about what you believe in.

The problem is that corporate special interests “get” this, and all too often we don’t—especially many of us who come from academic backgrounds, where arguing is the accepted way to flesh out ideas and learn.

Let me demonstrate by showing you how corporate special interests redefined “corruption,” why this is so important, and how you can help break people out of this trap.

Pay more and get less: The Ryan plan to privatize Medicare

November 29, 2016 at 11:41 am
[caption id="attachment_2147" align="aligncenter" width="640"]Paul Ryan speaking at CPAC in Washington D.C. on February 10, 2011 (Gage Skidmore/Wikimedia) Paul Ryan speaking at CPAC in Washington D.C. on February 10, 2011 (Gage Skidmore/Wikimedia)[/caption]

One of the fights likely to come up early during the next administration is privatizing Medicare.

Tom Price, chairman of the House Budget Committee, has indicated Republicans will try to privatize Medicare in a budget reconciliation bill (a sneaky filibuster proof attack).

You’re going to hear a lot about “choice” and “efficiency” and the amazingness of markets, but Ryan’s plan basically comes down to two things: 1) you will pay more, and 2) you will get less.

Big businesses are hurting small businesses

June 29, 2016 at 6:39 pm
[caption id="attachment_2112" align="aligncenter" width="650"]'The Big Fish Eat the Little Fish,' satire on the fall of Johan van Oldenbarnevelt, 1619. ‘The Big Fish Eat the Little Fish,’ satire on the fall of Johan van Oldenbarnevelt, 1619.[/caption]

We often hear that taxes and regulation are hurting small businesses. As a small business owner and someone who talks to a lot of conservatives, I hear this all the time.

Though it has a small kernel of truth to it (a key to most successful marketing), this ignores the larger part of what’s really happening.

What’s hurting small businesses? Big businesses. A few ways they do this are through consolidation, market leverage, technology, temporary jobs, corporate special interests, media, and globalization. They also do this through tax evasion, government capture, and lobbying for regulations that create barriers to entry.

Here’s a closer look at how big businesses are hurting small businesses.

Why we have a progressive income tax

June 7, 2016 at 1:51 pm

Pictures are a really powerful way to tell a story. If you can find an easy way to explain something through pictures, you can often make great strides in a very short period of time.

One of the things that often gets brought up in conversations with conservatives is this idea of a flat tax. Many conservatives think this is somehow “fair.”

progressive_tax012

Here’s a simple drawing to illustrate why we have a progressive tax and to show how the flat tax is really just a loophole for the wealthy.

Economists discover people don’t behave rationally

May 30, 2016 at 1:28 pm

“Contrary to our original thinking, I’ve come to believe that people don’t behave like the economic textbooks say they should behave,” wrote Dr. Paul Wingfield, an economist at Cato University. “People don’t behave rationally.” Wingfield and his colleague, Dr. Summer Redaction, recently published an article inHigher Economics titled “Outside our corporate […]

The great tax shift: How politicians promise tax cuts, then shift the costs onto you

April 5, 2016 at 5:36 pm

Politicians make a lot of promises about taxes.

Ted Cruz claims:

As Washington pads Wall Street’s pockets, hard-working Americans get left behind. My tax plan will change that.

Donald Trump claims he’ll “make America great again” with his tax plan. Others have similar plans. Flat taxes, “fair” taxes, etc.

We’ve been hearing these same claims for 40 years. What actually happens is that politicians lower taxes, primarily for the wealthy, and then they do one of two things: 1) shift the costs onto you, or 2) run deficits.

When you hear pundits and politicians talk about taxes, forget what they say. The truth is simple: You’re going to pay more, and the wealthy are going to pay less.

As tax day approaches, here’s a story you won’t hear in the corporate media.

Donald Trump speaking at CPAC 2015 in Washington, DC (Gage Skidmore/CC-BY-SA 3.0) Donald Trump speaking at CPAC 2015 in Washington, DC (Gage Skidmore/CC-BY-SA 3.0)

‘All for each and each for all:’ Teddy Roosevelt’s Square Deal

March 22, 2016 at 10:47 am

Corporate special interest groups in our country such as the U.S. Chamber of Commerce have figured out that they can sway government in their favor if they market themselves as “good” and paint certain people as “evil.”

This is why today we live in a world where our richest businessmen and businesses are marketed as “good,” capable of doing no wrong, and all government is marketed as “bad.” In this world, government exists only for the purpose of business owners and we’re told we should just sit back and let the benefits trickle down. Only they haven’t. In fact, the opposite has happened. The rich have gotten richer and more powerful at the expense of everyone else.

We’ve seen this before. The late 1800s and early 1900s saw the rise of rich monopolies that hurt the average person. Railroads favored certain large trusts over small farmers.Upton Sinclair wrote The Jungle in 1906 exposing the health violations, labor abuses, and unsanitary conditions of the meatpacking industry. Foods and drugs were mislabeled and consumers deliberately misled.

As a result, Theodore Roosevelt, a progressive Republican, introduced a platform based on a few simple ideas that would become known as the Square Deal. On April 5, 1905, he delivered his Square Deal speech in Dallas, Texas, where he laid out his philosophy:

It is all-essential to the continuance of our healthy national life that we should recognize this community of interest among our people. The welfare of each of us is dependent fundamentally upon the welfare of all of us, and therefore in public life that man is the best representative of each of us who seeks to do good to each by doing good to all; in other words, whose endeavor it is not to represent any special class and promote merely that class’s selfish interests, but to represent all true and honest men of all sections and all classes and to work for their interests by working for our common country.

This is what everyone wants: A square deal for all.

[caption id="attachment_2018" align="aligncenter" width="550"]Theodore Roosevelt speaking from the balcony of the Hotel Allen, Allentown, Pennsylvania, 1914 (Lehigh County Historical Society). Theodore Roosevelt speaking from the balcony of the Hotel Allen, Allentown, Pennsylvania, 1914 (Lehigh County Historical Society).[/caption]

Twelve questions for Bruce Bartlett, economic historian and former Reagan adviser

March 8, 2016 at 9:56 am

Bruce Bartlett is a historian and former Reagan adviser who describes himself as a lifelong conservative that believes the current GOP panders to fools. He’s written for the Economix blog at the New York Times and has authored several books including The Benefit and the Burden: Tax Reform – Why We Need It and What It Will Take. I’m a longtime fan of Bruce’s work and when he contacted me about a post, I asked him if I could pick his brain about economics and economic myths.

Bruce Bartlett in a 2012 interview with Bill Moyers. Bruce Bartlett in a 2012 interview with Bill Moyers.[/caption]

No amount of hard work is going to pull people up if they don’t get paid for working hard

February 29, 2016 at 11:06 am

back_in_my_day_650
One of the things corporate special interest group marketing takes advantage of is differences between the generations and their understanding of the economy.

You’ve seen the memes. The most famous example was Mitt Romney characterizing 47 percent of Americans as lazy.

Typically, I see posts like this on the Internet:

A Baby Boomer friend of mine explaining how hard he’s worked. A Baby Boomer friend of mine explaining how hard he’s worked.

Implicit in my friend’s post is the idea that anyone can pull themselves up if they just work hard.

The problem is that things today are very different. There are no more paper boys. Or pensions. Hell, newspapers may not even be around much longer.

What my Baby Boomer friend experienced was very different than today’s reality. Because of these life experiences, it’s often difficult for Baby Boomers to understand just how different today’s economy is from the economy of the 1950s and 1960s.

How can you help people like this (especially in your own family) understand the realities of today’s economy?