Credit is just future consumer spending. You make more now to get less later. What we have is that the credit bubble bursts, and we are now at the point this future spending has to be paid off first. Also you can blame the tax cuts on the rich. if you divide a certain amount of money equally over a certain amount of people, instead of giving 1% of them 50% of the money, you will have a healthier economy. That's because after a certain amount of money you have saved you will stop consuming with the extra money. There's a reason they say, the rich get richer. Because the rich use their money not for consumption but for wealth creation, they will seek ROI. This can lead to bubbles and malinvestments. because if one rich person invests in houses, and more keep coming investing, then all the other ones will too, because more money inflow lead to more demand, leading to higher prices, leading to higher ROI. It is a fairy tale that tax cut for the rich will leads to more investments and better the economy, they will lead to more MALinvestments. If you don't see the danger of tax cut for the rich, just look at this forum. Everybody here wants to get rich, they have 100k, want to have 1 million, they have 1 million, want to get 10 million. They tell you you have to spend the minimum on base necessities to survive. If everybody did that the economy would be in a depression.
'ya know what, lots of people are looking back and seeing that the new deal spending prolonged the depression. Martin Armstrong concluded that government interventions only serve to increase the volatility!! The economy was struggling to expand but in 1937 there was a recession. To top it all off they confiscated the gold and put it in Fort Knox but since the 1950's they refuse to do an audit and tell us how much of it is still there!! The lifeblood of an economy is the private sector, the best thing the public sector can do is provide an environment where crooks are frustrated and well motivated people are allowed to be productive.. I think they call that the Pursuit of Happiness or somesuch...
Socialism is practically already present in America, socialism for the rich. And go back to what I said about redistribution of wealth, it seems you didn't read it properly. Who does lower dividend, capital gain, death taxes affect? 80% of people have virtually no assets for dividends, or capital gain taxes or any assets to pass on to their children. And passing on assets is important, it's why the average american is richer than the average mexican, he was able to have his parents help him. This IS a redistribution of wealth, to the top. You pay taxes on everything, highways, sales taxes, income taxes. But if you're a rich investor, you basically get a free pass. How were nobles allowed to remain in power for hundred of years in old Europe? They paid no taxes, the peasants paid all the taxes, including the expensive wars that they didn't want and the expensive dinners of the king. How were the nobles killed off by the budding capitalists? Estate taxes. By eliminating the taxes I listed above, you're creating the same "noble class" that's above all of the rat race. Their assets and power is eternal, no need to innovate, no need to work hard, all you need is to keep the status quo. That is socialism, pure and simple. I'm not advocating for jacking up those rates way higher, we're on a traders forum after all, but that's the cold facts. Now if you want to be taken seriously, you better show some sensibility in your arguments, or else you'll just be seen as a biased selfish participant. edit: and yes, someone living hand to mouth getting a $1 of tax break is way better for the economy, that's obvious. It's the fact these people spent more and more these last decades that the economy could even go on.
LOL--do you even know what communism is? Do you have any evidence for your assertion? Something to the effect that the workers sooner or later will seize the means of production, and abolish all religion and government.
I know exactly what it is and it's every leftist's fantasy. Fortunately, it has a bad wrap currently, so these guys are settling for socialism.
More great reading for the useful idiots. http://www.amazon.com/BLAME-AMERICA-FIRST-Useful-Idiots/lm/R3DAM0HS7BBIF5