How will Jill’s (or Bernie’s) economic polices affect various income levels

Robn wrote this to someone who was either very honestly worried about the proposed Economic/tax ideas or trying to propagandize and discredit them. Either way it deserves an answer.

Where do you get the idea that tax changes are the only way to benefit or lose from policy changes?

Bernie’s policies would enable consumers to increase spending, which increases demand, which grows the economy, which benefits EVERYONE.

Austerity stalls the flow of money which stagnates the economy and hurts everyone. Yeah, it is a lot more complicated than that with excess debt being one of the problems. It is much more responsible to tax and spend then to borrow and spend.

Bear in mind that increased Marginal taxes (which are not on one’s entire income, but only on the amount above the lower tiers) are not the only impact on one’s well-being. If the middle class gets relief, then the economy will grow faster. If the pie gets bigger and income grows then, even with higher taxes, one can come out ahead.

Paying less in health insurance premiums also increases net income so that most will come out ahead. With a health care system geared towards improving health instead of profits other forms of well-being are improved as well. A healthier work force means less absenteeism and greater productivity for example.

Also, with relief for poorer people there is less social unrest. Less crime, less anger, less stress. This also increases the well being of even the rich. If Marie Antoinette had understood this she might not have lost her head! I see no current risk of violent revolution but that’s the point. Let’s fix things before we get there.

For the ultra rich I would like to know how their standard of living would be impacted by a drop of net income even if it did occur. As far as I can tell, the only true impact on how they live their lives would be an increasing feeling of victim hood. The talk is all about how they EARNED their money and how it should not be taken away.

Nothing to convince me that they would suffer in any way other than bruised egos. Nothing about paying their share for all the benefits received in this country, nothing about responsibilities. I hear nothing to convince me that these or higher tax rates would be an unfair burden on them. These are the same people who claim that our paid for SS benefits need to be cut even though this would most definitely impact our quality of life.

They claim that the current lower taxes enable them to provide jobs. What jobs? I see no connection between what few jobs have been added and these lower taxes. You can not add jobs to create products that no one can afford to buy. The middle class (and the poor) are not just a labor pool, they are also your customers. It is THEIR demand that creates jobs.


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