An article by By Chris Baines at The Motley Fool explains why the deficit isn’t really a problem. Future articles here will show why the “fiscal cliff” is a smokescreen that is promoted by large corporate interest to promote tax reform legislation that further tilts the policy advantages in their direction. If the intended result is realized, the hollowing out of the middle class that we have witnessed over the past few decades, particularly since the Reaganization of U.S. economic policy, will escalate.

Figure 1. The Defense Boondogle

It’s quite obvious why the middle class’ wealth has disappeared.

Defense spending

Figure 1.5

military spending

Figure 2. Republican Deficit Spending

It does 2 things: a) funnels money to corporate constituents; b) creates deficits that give Republicans an excuse to pressure Democrats to cut programs for the 99%.

Debt ceiling

3. The Corrupt Tax Code

It is designed to redistribute wealth from the earners to those who live on their labor.

tax rates

Advertisements