Wednesday, April 11, 2012
How dumb can you get?
Conventional Wisdom is a substitute for thought. Right now, as we enter the silly season of political campaigning Conventional Wisdom is all you'll hear until the elections. And then afterwards too.
1) Cutting taxes worked for Reagan. We need to cut taxes to stimulate the economy.
This is so wrong on so many levels. First, Reagan raised taxes 11 times. Second, when he did cut taxes it was in a MASSIVE SURPLUS ECONOMY. Third, tax rates were 70 percent.
Cutting Taxes from 70% to 50% in a surplus economy is not similar to cutting rates from 35% to 30% percent in a DEFICIT economy.
Any moron can see that. Sorry, apparently many morons can not see that.
For those tiny brained people: Imagine a big fat person named Joe with heart trouble. Let's say 6 foot tall 300 pounds. Doc says "Lose a hundred pounds it will help your heart. Joe loses 100 pounds and his heat improves. Could be coincidence. But still, losing weight didn't hurt him.
Now Bob 6 foot tall and 150 pounds walks in with heart trouble. Doc says, "Gee better lose 100 pounds. Look how that helped Joe." Bob loses a hundred pounds. Now he's 6 foot tall and fifty pounds. He dies.
Can you see that the two cases were different?
The fact that this must be explained to those Leading the Country is exactly why nothing is going to get better soon.
2) How about this one: The top 1 percent pays 40 percent of the Taxes. That's too much!
You hear this one from tiny brained people continuously. But Percentages by themselves are meaningless. Everywhere and Always. The top 1 percent owns 70 percent of the financial assets. So for them to pay 40 percent of the taxes is actually way too low.
3) Here's a Big One from the Keynesians like Paul Krugman. "Flooding the economy with printed money helped during the collapse of 2008. So even more printed money should help even more now as the economy slows again."
Again, wrong on so many levels. First, this is only 2012. We have NO IDEA how much long term damage the Money Flood of 2008 will cause. Can't you see that? We propped up Moribund Banks. They're still propped up. Does that mean we're any healthier?
Second, this is the same Moronic Logic used by Reagan Tax Cut Crowd. IE; What worked in one specific case should work in every case, no matter how dissimilar.
How stupid can you get - just on the level of sheer logic? What has happened to us as a culture that we can't think?