The Last White Fan
July 21, 2002, 06:00 PM
In response to Suzanne bringing up the tired old cliché
“the rich get richer and the poor get poorer”
suzanne, It simply picking up on a very old democratic party tactic used during the Regan re-election that seems to keep being fed to young minds in less than reputable community colleges.
The deal was that during the Regan administration there was 8 years of economic growth that quite honestly had little to do with Regan, however since the economy was growing there was very little need for social programs of the previous administration, along with massive amounts of deregulation Regan drastically reduced public spending. Ergo there was less of a need for taxation, Regan’s tax plans chose to reward the “rich” well these were the people who were making the economy grow and Regan look good.
What the democrats did was come up with this slogan that said
“The Rich get richer and the poor get poorer”
Well that wasn’t exactly true, they used some funny math to get that statement to work out. They counted the increase income of the richer Americans, as well as the money they saved as addition income, to make the rich look even richer,
For example say if I made netted 1,000,000 after taxes under Regan, and I would have only netted 800,000 under the former Carter tax code in the democrat calculations they estimated that I made 1,200,000 even though I only have 1,000,000 in my pocket.
So even though the rich did get richer they over estimated how much they did increase.
The inverse side of the statement had funny math as well, almost everyone prospered during the economic growth of the 80s, lower income families did have a slight increase in income, however the democrats calculated all the funds that were cut in social programs and subtracted it from the net income of the lower tax bracket in their estimations,
For example say I make 20,000 under Carter and 24,000 under Regan even factoring in the 9% inflation of the time they poor guy was still doing better. However the democrats factored in a loss of $16,000 of POTENTIAL benefits from social programs that were no longer available to American’s. So the democrats reported that the guy with 24,000 had only 8,000.
So by their skewed math “The Rich got Richer and the Poor got Poorer”
Like I said the economic growth of the 80s had very little to do with Regan, but it is true that most American’s across the board did better in the 80s as opposed to the Carter years.
Please keep in mind politicians react to the economy not the other way around, people have a tendency to feel that the economy is a direct result of the actions of politicians.
When the fact remains that politicians actions are a direct result of the economy, sure they can make minor tweaks here and there but by in large do have a great impact.
Now if anyone is interested, during the Carter years, across the board everyone did worse except for the Ultra rich who made MEGA money. This was do to a direct result of the Carter administration’s blunder.
Let me know if you would like me to explain in detail.
Cheers,
LWF
“the rich get richer and the poor get poorer”
suzanne, It simply picking up on a very old democratic party tactic used during the Regan re-election that seems to keep being fed to young minds in less than reputable community colleges.
The deal was that during the Regan administration there was 8 years of economic growth that quite honestly had little to do with Regan, however since the economy was growing there was very little need for social programs of the previous administration, along with massive amounts of deregulation Regan drastically reduced public spending. Ergo there was less of a need for taxation, Regan’s tax plans chose to reward the “rich” well these were the people who were making the economy grow and Regan look good.
What the democrats did was come up with this slogan that said
“The Rich get richer and the poor get poorer”
Well that wasn’t exactly true, they used some funny math to get that statement to work out. They counted the increase income of the richer Americans, as well as the money they saved as addition income, to make the rich look even richer,
For example say if I made netted 1,000,000 after taxes under Regan, and I would have only netted 800,000 under the former Carter tax code in the democrat calculations they estimated that I made 1,200,000 even though I only have 1,000,000 in my pocket.
So even though the rich did get richer they over estimated how much they did increase.
The inverse side of the statement had funny math as well, almost everyone prospered during the economic growth of the 80s, lower income families did have a slight increase in income, however the democrats calculated all the funds that were cut in social programs and subtracted it from the net income of the lower tax bracket in their estimations,
For example say I make 20,000 under Carter and 24,000 under Regan even factoring in the 9% inflation of the time they poor guy was still doing better. However the democrats factored in a loss of $16,000 of POTENTIAL benefits from social programs that were no longer available to American’s. So the democrats reported that the guy with 24,000 had only 8,000.
So by their skewed math “The Rich got Richer and the Poor got Poorer”
Like I said the economic growth of the 80s had very little to do with Regan, but it is true that most American’s across the board did better in the 80s as opposed to the Carter years.
Please keep in mind politicians react to the economy not the other way around, people have a tendency to feel that the economy is a direct result of the actions of politicians.
When the fact remains that politicians actions are a direct result of the economy, sure they can make minor tweaks here and there but by in large do have a great impact.
Now if anyone is interested, during the Carter years, across the board everyone did worse except for the Ultra rich who made MEGA money. This was do to a direct result of the Carter administration’s blunder.
Let me know if you would like me to explain in detail.
Cheers,
LWF