The Biggest Economic Lies

Robert Reich has predicted every downturn and upswing, every trick pulled by both Parties. Even though a staunch Democrat he sees the failings in President Obama and his own Party. He recently Tweeted the following spot on comments:


Biggest economic lie #1: We must cut deficit now. Truth: Cutting deficit now robs economy of demand it needs, causing slowdown or recession.

Biggest economic lie#2: Rich are the job creators. Truth: Broad middle class are job creators through their purchases.

Biggest economic lie #3: Corporations need tax cuts. Truth: Corps sitting on almost $2 trillion, buying other corps, buying own stock.

Biggest economic lie #4: Low-income Americans pay no taxes. Truth: They pay higher share of incomes in payroll and sales taxes than others.

Biggest economic lie #5: "Markets" exist without government. Truth: Government organizes, defines, and enforces the market.

Biggest economic lie #6: Inflation is just around the corner. Truth: Recession is just around the corner.

Biggest economic lie #7: Super-wealthy over-taxed. Truth: Richest 400 Ams wealthier than bottom 150 milln together & pay pittance in taxes.

Biggest economic lie #8: Unemployment benefits responsible for high joblessness. Truth: 3 people looking for jobs for every job opening.

Biggest economic lie #9: Social Sec in dire straights, must raise eligibility age & cut benefits. Truth: SS fine for 20 yrs. Raise ceiling.

Biggest economic lie #10: Wages are rising. Truth: Median wage continues to drop, adjusted for inflation. Now 8% below 2000.

Biggest economic lie #11: Raising min wage kills jobs. Truth: It fuels demand. States with higher min wage have no higher unemployment.

Biggest economic lie #12: Medicare must be cut. Truth: It's more efficient than private health insurance & should be expanded.

Biggest economic lie #13: Raising taxes on rich slows economy. Truth: No such correlation. Ec grew faster betw '46 & '81 when taxes higher.

Biggest economic lie #14: We're creating nation of "takers." Truth: Reason for rise in public benefits since '08 is joblessness.

Biggest economic lie #15: All gov't spending the same. Truth: Public investments in infrastructure, education, & basic R&D spur ec growth.

- Robert Reich