What Wall Street did to our economy?
Look further than the revisionist history that is being spoon fed in our schools. Open the books called almanacs. They can't change them.
If you load a couple of decades' worth of this data in a spreadsheet, you'll see what I mean. You might also realize that Democratic economic theory has shifted dramatically to the left since the 1960's. Jack Kennedy's economic policy was just as supply-side as Reagan's and just as successful. It was Carter's "share the wealth" goals that broke the economic engine of America--just like Obama is doing now. But both could only accomplish that with Democrats heavily dominating both Senate and House which were focused on increasing tax rates beyond what the American public could tolerate.
These macroeconomic theories are bunk because they leave out consideration of the fundamentals. These fundamentals have held true for every economy since at least the middle ages, whether run by kings, native village chiefs or presidents of socialist dictatorships or democracies.
One, if you take too much of what people earn, they will stop earning by going on the "dole" or moving away or going underground. Two, the size of the economic "pie" is never fixed--it's either growing or shrinking. Keynes' macro theory completely leaves out the affects of taxation levels. It also ignores that most people are smart enough to realize when they're being robbed or cheated.
Even a 3-year-old will react if he "earns" two pennies and you come along and "take" one of them away. I dare you to test that.
The government can't "fix" the size of the pie in order to share "too much" of it without causing shrinkage. That is, if it tries to share too much of the peoples hard-earned wealth, they leave. Then your economy shrinks. We only have to look at the collapsed Soviet and Chinese economies of 20 years ago to see that Obama-Pelosi-Reid-onomics will follow the Soviet and Chinese "controlled" economies.
Look at California over the last five years to see where OPR-onomics is taking us. That is because overtaxed economies fail--just like the pre-revolution economies of France (when Louis lost his head), Britain (King Charles lost his head, King George lost America and all of the European countries that followed similar patterns.
We need to switch to a national sales tax (not on foods or medicines) that is the same for everyone. That will eliminate the overhead cost of running the IRS (at $20 Bil each year as of 20 years ago), lobbying costs to businesses trying to sway politicians for "tax breaks," accounting costs of businesses and individuals so that more people can be hired to produce goods or services instead of counting the beans for the government and looking for loopholes.
If such a thing is ever accomplished, we'll see another 100 years of economic growth without boom or bust.
