Why Extending the Bush-era Tax Cuts Won’t Help Our Economy  

by
December 7, 2010

President Obama announced yesterday that the Democrats had
joined with the Republicans in agreeing to extend the temporary
tax cuts first put into effect during President Bush’s first term.

President Obama also said that these tax cuts would help create
millions of new jobs. This is the kind of thinking by our politicians,
both Democrats and Republicans, which has caused our present
economic distress.

We are in a period of structural unemployment. This is not a normal
cyclical recession as we have experienced in the past. The usual
fiscal and monetary policies, including tax cuts, are not going to
bring us out of our downward economic spiral.

The Bush-era tax cuts did not keep us from going into a deep
recession in 2008, nor did the tax cuts keep our unemployment
rate from rising to nearly 10 percent.

If the earlier tax cuts were ineffective in preventing a deep
recession and millions of unemployed workers, why would
extending the tax cuts now help create millions of new jobs?

The obvious answer is that extending the tax cuts will not help
create millions of new jobs.

Our economy is being destroyed by sending thousands of factories
and millions of jobs to China and other low-wage countries. Our
prosperity and wealth are being transferred to China.

Our economy is not going to recover until we bring our factories
back from China. And tax cuts are not going to keep the big
corporations from continuing to send our factories and jobs to
China and other low-wage countries.

One Response to Why Extending the Bush-era Tax Cuts Won’t Help Our Economy

  1. Darlene Barron on September 23, 2011 at 3:05 am

    Right, and we have more imports than exports and now Obama is going along with the new trade agreement of which now we know that will just open up more countries for the corporations to send our American jobs.

    There needs to be punishment for sending jobs overseas, one good way would be don’t buy the products that are being sold back to us. Great, we subsidize a business in the US, then they close it down and once they have the equipment and the business in place, they close it down and ship the equipment and the structure to another country and then sell, import the products back to us at a higher rate or the same price they woul have been selling it to us in the United States if the company was still in the US.

    Who pockets are getting padded, the owner, the corps, the CEO’s!!!! What a hussle and are we fools if we do not see this? If we weren’t all so greedy and our children not so spoiled and used to enjoying video games and stylish wares, we could boycott this businesses, but all in all, the government needs to punish these businesses legally and effectively.

    Dream on right, a sensible workable solution to keep jobs in America…..guess they are getting the rewards of sending the jobs overseas too, but not the American people, lots of us getting rewarded with joblessness, homelessness and illness without healthcare or a healthy piece of mind!

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