At the State of the Union show on Monday night, Democrats predictably sat on their haunches when the President called for the tax cuts to be made permanent, and when he warned the Senate not to load the stimulus plan with a lot of pork. Even as he spoke, Democrats were hatching plans to add more welfare spending for even more people who don’t pay taxes.
So along comes an AP article that blows the lid off liberal economics. AP reports that economists are concerned that “the affluent” are cutting back on spending –which will hurt the economy — and, “deliver more pain to lower-income workers, who are dependent on their business and fat tips.”
AP’s economists say– surprise!– that when the wealthy cut spending, there’s a”ripple effect across all consumer spending.” Households making over $150,000 account for almost 40 percent of all spending and two-thirds of all economic activity. Our economy depends on the affluent to “spend with enthusiasm,” because the top 20 percent of earners spend almost five times as much as the bottom 20 percent. When they stop spending, everybody suffers.
By gosh, folks!It’s atotal vindication of supply-side economics!And Ronaldus Magnus!These affluent Americans are the very people Democrats hate– and say don’t deserve tax cuts–who aren’t even included in this so-called stimulus package. The same people who pay for every big government program the Democrats propose.
Conservatives know this. Liberals know it, too, but they can’t dare admit it,which is why electing real conservativesmatters. Ihope thatthis AP reporter still has a job tomorrow!
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