By Letter to the Editor on November 7, 2018.
If you have been watching the U.S. over the last year or so, a familiar pattern is unfolding. The government gave a huge tax cut to corporations and individuals (particularly the wealthy) for the expressed purpose of repatriating money back to the U.S. and to create jobs.
To these ends, for now, they have been successful; the job rate is lower and investment portfolios have ballooned. The deficit hawks on the GOP side, however, have gone into hiding, opting to hand out money they technically did not have. The current deficit for the year is over $800 billion – never mind the total debt!
What is going to happen when the stock market buckles when investors decide to run for the hills because inflation is taking off, or trade wars are ramping? Three things for sure: jobs and investments will be undone; there will be less money around to help through the hard times: and more wealth will accumulate into fewer hands, for those with more are less affected.
Is not this repeating cycle of tax cut, short-term growth, eventual downturn losses and increased debt at the heart of why wealth is accumulating at the top? Corporations and the wealthy are continuously being incentivized with tax cuts to develop our economy and create jobs.
Well guess what they are doing with some of the new-found wealth from these tax cuts? They are buying technologies and artificial intelligence to reduce labour costs! And they are also buying back shares to increase the wealth of their shareholders!
Those wondering why wealth is accumulating into fewer and fewer hands need to realize that they are sanctioning this with their vote – or lack thereof – at election time. Perhaps we need to look at replacing this worn-out, broken mould of “trickle down” economics that inevitably results in wealth “trickling up.”
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