WASHINGTON (Reuters) – A pickup in consumer spending and strong exports powered economic growth ahead at its fastest rate during the third quarter since the beginning of 2006, according to a government report on Wednesday.

While the Democrats and my colleagues continually complain about how bad this administration is, I PTL every day we don’t have a (more) socialized economy like the ones in Europe.

The final nail in the middle class coffin
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One thought on “The final nail in the middle class coffin

  • This might belong on the previous post, so forgive me, but this continued obsession with the “income gap” has the potential to be quite exhausting, so to preserve my sanity I’m going to get this out now:

    Free markets are the MOST useful way to create total wealth in an overall economy…domestic and global. They also GUARANTEE “inequality” in wages, incomes, assets, and wealth. That inequality will cycle up and down over decades and are the result of a PLETHORA of factors, including most recently:

    1) globalization factors out of the hands of any domestic tax code.
    2) CEOs grossly overpaying themselves.

    If one were to argue for “more taxes on the rich” (not that anyone has…but just in case) they are NOT addressing the issues which really cause “income inequalities” (and are not acknowledging the benefits and realities of said income inequalities).

    Better (as in…better for U.S. corporations) international trade and tax agreements, and pressure from boards of directors to stop paying their CEOs exorbitant salaries (and severence umbrellas in their contracts) will solve a lot of problems.

    Taxing the rich more and giving it to the poor will NOT “buttress the middle class,” it will erode it…slowly but surely…because, among other things, they will have less incentive to “move up.” This is not rocket science, and it’s not new.

    The middle class ALWAYS loses out on income distribution. The estate tax and the capital gains tax HURT the middle class more than they hurt the upper class…period.

    SO…in summary:

    1) Pretending we don’t already have a progressive tax code by saying that Warren Buffett pays a lower percentage in taxes will not solve the “problem” of “income disparity”.

    2) Pretending that the only adjustments to our tax code should be sticking it to the “rich” when said “sticking” would affect middle class (especially small business owners) WORSE than the “rich” will not effectively solve any problems.

    3) Pretending that’s it’s still the 1940s when only the “rich” had a large portion of their retirement in stocks will not solve any problems either.

    4) Stakeholders in major U.S. corporations (employees, customers, stockholders, etc.) should put pressure on their boards of directors to stop putting NINE FIGURE severence packages into CEOs umbrella contracts. (Does anyone know how many Boards Warren Buffet sits on?)

    5) The Bush tax cuts should not be allowed to die, since they have a) kept us out of a recession, and b) have very little to do with “income inequality”

    6) AND…Most importantly: Income inequality is a “necessary evil” in a free market economy. The existence of the “middle class” is a RESULT of free markets, and (as is evident by the Warren Buffett story) attempts to distribute wealth only negatively affects the middle class while leaving the truly wealthy unscathed, and the truly poor completely unaffected because they aren’t paying taxes anyway.

    As far as I know, noone has calculated an “ideal” income disparity in a free market, so endless stories about the “income gap” is shameless political poppycock for the purpose of somehow blaming tax cuts (and thus the EVIL Republicans) for all that is wrong with the world. It’s real easy to do, but it’s just not based on reality.

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