Comparing today’s recession/depression to the 1980 recession

Comparing today's recession/depression to the 1980 recession

"Much like today, Americans were concerned not only with high unemployment but increasing budget deficits in the early 1980s. A September 1983 Gallup poll found that three-fourths of the public agreed that the federal government's budget deficit was a great threat (42%) or some

Read More

Why savers are getting screwed

Why savers are getting screwed

"Without the intervention of economic policymakers, interest rates would be naturally higher. That would increase the cost of borrowing for businesses and consumers, but there would be some offsetting economic benefits. Savers are getting screwed by the current monetary policy

Read More

Geithner admits USA bankrupt to US Senate

Geithner admits USA bankrupt to US Senate

"Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States. Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses

Read More

Real reason for electricity blackouts hitting southern US

Real reason for electricity blackouts hitting southern US

“Large oil companies have for a decade artificially shorted the gasoline market to drive up prices,” said FTCR president Jamie Court. “Oil companies know they can make more money by making less gasoline.” The following article was written by Paul Joseph Watson. He is t

Read More

World economies on verge of currency revaluations to deal with debt

World economies on verge of currency revaluations to deal with debt

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -- Henry Ford Basically what the world central banks are doing is increasing their money by devaluin

Read More

Is Obama the next Mugabe of Zimbabwe?

Is Obama the next Mugabe of Zimbabwe?

"America, Britain, Japan, Germany, France, Sweden, Holland, Norway, Canada and Australia make up the Fishmongers Group and their meeting on Tuesday will deliberate on the state of the inclusive government, debt relief, public finance administration and the controversial economi

Read More

US raiding foreign countries with dollars, not soldiers

US raiding foreign countries with dollars, not soldiers

""The United States is going to China and saying: we want you to commit economic suicide, just like Japan did. We want you to follow the same thing: we want you to revalue your currency, we want you to squeeze your companies, we want you to go bankrupt,” says Michael Hudson,

Read More

FDIC wants your retirement cash to save banks: Bloomberg

FDIC wants your retirement cash to save banks: Bloomberg

“The FDIC is constantly looking at structures where we can get the greatest opportunity to tap into capital that we have not had the success reaching through previous disposition methods,” FDIC spokeswoman Michele Heller said in an e-mailed statement. “We welcome and work

Read More

Canadian government admits recovery never happened

Canadian government admits recovery never happened

“Not only did their stimulus fail to create the jobs of tomorrow, it also failed to protect the jobs of today,” Scott Brison, the opposition Liberal Party’s spokesman for finance issues, said by telephone. "Most of us were shaking our heads in disbelief early last year w

Read More

How Western society is brainwashed and crumbling

How Western society is brainwashed and crumbling

"The cultural embrace of illusion, and the celebrity culture that has risen up around it, have accompanied a growing system of casino capitalism, with its complicated and unregulated deals of turning debt into magical assets, to create fictional wealth for us, and vast wealth f

Read More

Will we see double digit interest rates from the 1980s?

Will we see double digit interest rates from the 1980s?

"And I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale." -- Thomas Jefferson Spending is

Read More

Greenspan: credit crunch “by far the greatest financial crisis”

Greenspan: credit crunch by far the greatest financial crisis

Greenspan said that while the economy was in worse shape in the Great Depression, the recent financial crisis was potentially more harmful than that in the 1930s because “never had short-term credit literally withdrawn.” Greenspan just said that the current credit crunch

Read More

Content By: The Coming Depression Editorial Staff (dates cited below)
Copyright: include link to this article on top of reproduction if you use it.
Bookmark and Share
(No Ratings Yet)
Loading ... Loading ...

Obama Hood

“Almost everything disappears at the end of next year,” says Roberton Williams, a senior fellow at the Tax Policy Center here. “If that happens, almost everyone who pays taxes will see a substantial tax increase.”

For the past half year, economists and pundits have been warning us all about a coming “double dip” recession (which is essentially a depression with a brief interruption with government spending) coming to the US economy. It would seem that the majority of the pundits and analysts have solely been focusing on the pending failure of bail out spending, and that they were so busy focusing on recent events that they neglected to focus on the past deliberate attempts to foil the US economy.

In terms of increasing inequality, the effect of Bush’s tax cuts on the upper, middle and lower class is contentious. Most economists argue that the cuts have benefited the nation’s richest households at the expense of the middle and lower class, while libertarians and conservatives have claimed that tax cuts have benefitted all taxpayers. Economists Peter Orszag and William Gale described the Bush tax cuts as reverse government redistribution of wealth, “[shifting] the burden of taxation away from upper-income, capital-owning households and toward the wage-earning households of the lower and middle classes.” — Wikipedia

In 2001, Bush made significant tax cuts as part of his campaign pledge to reduce government spending. The reality is that overwhelming majority of the money Bush cut in taxes was actually BORROWED to give to rich people in the form of tax cuts that went to the top 1 per cent of America’s wealthiest people. The is redistribution of wealth! Borrowing $1.5 trillion from 300 million people and giving it to 3 million people is supposed to be something republicanism is against. Clinton raised the income tax to 39%, Bush dropped it to 36%, 0bama will take it back to 39%. He has stated that to be fact.

How will this affect the economy along with the coming astronomical soar of central bank interest rates? It will likely send the US economy into a disastrous depression worse than the “mini depression” we’re seeing right now.
bush tax cuts

Forbes.com seems to think that it will literally kill the economy if these tax cuts are expired:

Next year, Congress will not only have to find a way to pay for a fix to the ever-expanding Alternative Minimum Tax again, it must figure out what to do about many of the expiring Bush-era tax cuts and stimulus bill tax provisions.

“Almost everything disappears at the end of next year,” says Roberton Williams, a senior fellow at the Tax Policy Center here. “If that happens, almost everyone who pays taxes will see a substantial tax increase.”

We Need the Bush Tax Cuts Now More Than Ever!
Tuesday, January 8, 2008 NewsEconomics.com

The article, “The Debate Over How and How Long,” was published in the New York Times on January 8, 2007.

Quote: “On Monday, Mr. Bush devoted much of his speech to warning that Congress should make his tax cuts permanent. But that change would do little to forestall a recession, because the tax cuts do not need to be extended for another two years.”

My Opinion: If Congress agreed today to make the Bush tax cuts permanent, it would affect current consumer spending.

Martin Feldstein, an esteemed macroeconomist, predicts the odds of an actual recession are greater than 50-50. In that light, Democrats should be drooling over stimulating the economy with big government spending. On the flip side, lower taxes would also stimulate the economy. But lowering taxes permanently, would stimulate the economy even further.

Economic theory posits that permanent income-tax breaks have a larger effect on consumer spending than do temporary income-tax breaks. Back in 2001, Bush lowered taxes – a move set to expire in 2010. At the time, 9 years seemed like a long time – now, 2 years of further tax cuts seems much more transitory. The housing slump and credit crisis not withstanding, tax breaks that may expire, with the possibility of a democratic president stepping in, create nervous consumers.

Extending the tax break now past 2010 will have effects on consumer spending now. What we need is a little good news! November unemployment was 5%, retail sales in December were low, the price of crude oil hit $100/barrel, and our tax break is set to expire in 2010. Now, change that list to: November unemployment was 5%, retail sales in December were low, the price of crude oil hit $100/barrel, and our tax break is extended indefinitely. The last bit of good news will boost consumer spending now amid all of the poor economic news that is rolling in – the news that is part of Martin Feldstein’s odds-of-recession calculation.

So, extend the tax breaks!

Related posts:

  1. 120 days left until Bush Tax Cuts end“Almost everything disappears at the end of next year,” says Roberton Williams, a senior fellow at the Tax Policy Center here. “If that happens, almost everyone who pays taxes will...
  2. Economy worse than great depression: KrugmanPaul Robin Krugman (born February 28, 1953) is an American economist, liberal columnist and author. He is Professor of Economics and International Affairs at the Woodrow Wilson School of Public...
  3. Consumer spending is not indicative of recovering economy“While the sources for the supposed increases in U.S. consumer spending are murky at best, the amount of consumer spending in and of itself is not a determinant of whether...
  4. Economy Caught in Depression, Not Recession: Rosenberg“Positive gross domestic product readings and other mildly hopeful signs are masking an ugly truth: The US economy is in a 1930s-style Depression, Gluskin Sheff economist David Rosenberg said Tuesday....
  5. California the canary in coalmine of US economyState Controller John Chiang issued a stern warning Friday about California’s cash reserves, telling legislative leaders and Gov. Arnold Schwarzenegger they must act on nearly $9 billion in budget cuts...
  6. Chemical industry tanking: Dow chemical cuts spendingReports like this are happening all across the country. Spending cuts have the final result of millions of more unemployed. They, in turn, reduce their buying because they are living...

This entry was posted on Wednesday, November 18th, 2009 at 3:14 pm and is filed under Main Street. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

4 Comments

  1. November 19, 2009 @ 2:30 am


    According to Market Watch’s Paul Ferrill…

    Wall Street’s 2012 meltdown sweepstakes
    Don’t say we didn’t warn you this time — a new crash is dead ahead

    http://www.marketwatch.com/story/the-next-meltdown-is-coming-in-2012-2009-11-17

    Posted by Lori
  2. March 25, 2010 @ 11:06 pm


    [...] you get the idea. Oh, by the way. The Bush tax cuts will soon expire on top of [...]

  3. March 27, 2010 @ 7:05 pm


    [...] you get the idea. Oh, by the way. The Bush tax cuts will soon expire on top of [...]

  4. March 4, 2011 @ 12:30 am


    Yer’ a ‘junkie’ allright… but me thinks it’s ‘crack’ rather than political…!

    Posted by Henry Higheagle

Leave a Comment

Please note: Comment moderation is enabled and may delay your comment. There is no need to resubmit your comment.


Under the 'fair use' rule of copyright law, an author may make limited use of another author's work without asking permission. Fair use is based on the belief that the public is entitled to freely use portions of copyrighted materials for purposes of commentary and criticism. The fair use privilege is perhaps the most significant limitation on a copyright owner's exclusive rights. "