McCain says he does not understand economics.
When you're right, you're right................
Here is a political response to Cainomics.
The McCain campaign fills the air with pretentious nonsense about economics and they do so very aggressively. Obama's best response is to be even more aggressive, but with logic and compassion.
Here are some examples:
1. Cainomics suggests that businesses need more profits to create more jobs. So, taxes on business must be cut or we will lose jobs.
Response: Confusing claptrap. Businesses hire more people only when they expect more sales. If profits go up with no expectation of sales increases, business owners take a vacation or buy a boat. Cutting taxes on business encourages more consumption by business owners - it does not create jobs.
What it really does is to transfer wealth from working people to business owners.
2. Cainomics states that business tax rates are about the highest in the world.
Response: That's true, but only if you consider corporations. If you consider small, unincorporated businesses, US tax rates are about average.
Also, since most jobs come from small businesses, the corporate tax rate has little or nothing to do with job creation.
Here's a proposal - let's cut the corporate, federal tax rate by 5% [to 30%] but in exchange, corporations agree to give up tax treatment that encourages job outsourcing and transferring assets to shell corporation in the Cayman Islands and Vanuatu.
3. Cainomics states that Obama will raise taxes on all people.
Response: This is a flat lie and an embarrassment from a national hero. Come on John - you're better than that.
4. Cainomics states that the economy is fine and that the Bush policies of tax cuts for the rich are working.
Response: They are working to make the rich richer and the poor poorer. The average family is in trouble and Bush tax cuts are making them worse off, not better.
75 million people in this country have no health insurance or inadequate health insurance. They don't dare get sick - they are an illness away from financial disaster. That's 42% of the population between the ages of 30 and 65.
5. Cainomics states that regulating business is a failed policy that we have tried before and that did not work.
Fact: Most high growth economies, including the USA, have extensive business regulation.
Fact: Unregulated markets were tried until 1932 when the lack of regulation created the Great Depression. Since then, every country, including the USA, has regulated markets extensively.
Fact: Unregulated free markets always create monopolies and greater income disparities - the rich get richer and the poor get poorer.
6. Cainomics states that since savings creates the pool of capital businesses need to invest, any tax increase will reduce savings and reduce job creation.
Response: Pure claptrap.
Fact: Most capital creation occurs in corporations today, not from individual savings.
Fact: The capital pool is growing and readily available to sound business expansion.
Fact: Businesses get capital from a world wide pool of banks, venture capitalists, and wealthy individuals. Changing laws in the USA does not affect the world's capital markets significantly.