Backwards Economics

Recently I was privy to an online conversation about the economy.  The well educated participants brought up the obvious fact that the Republicans have not created jobs, and some wondered if that was even possible.

One very astute comment was about the fact that for 31 years Republicans have had a monster-sized boner to cut taxes for businesses, stating that concept will help create jobs.  This person made the case that it doesn't work that way.  It's exactly backwards from reality.

The reality is that big businesses in this country are profiting like never before.  They're making out like bandits, reporting huge profits every damned quarter in the last few years.  So if the businesses are profiting in extraordinary amounts, why are they not creating jobs?

Well, why should they, while they are profiting by doing nothing?  Creating jobs is an investment in your business, a plan to increase your product or service that you sell/provide.  An investment in the future.  But it normally takes away from your gross bottom line.

So then what is the incentive to make them do this?  Higher Taxes on Business.  I'm going to repeat this so you know you read it correctly:  HIGHER TAXES ON BUSINESS.

If I run a business and you raise my tax rates, I am going to look for ways to cut my taxable income because I just hate to pay taxes.  It's not even about avoiding a loss to my stockholders. 

It's about Idon'twannapaynodamntaxes. 

But it's also a truth that with higher taxes I won't profit as much unless I produce more.  So, what better way to produce more and avoid paying taxes and gain good profit, than to expand my business? In the expansion, I will need more employees at every level.  I WILL CREATE JOBS. 

Wowweee!  What a concept!  More people working means more spending, more money going into the coffers of all businesses including my own, and more money going into the government FROM THE WORKERS in the form of taxes.  A rejuvenated economy.

With record profits every quarter, and taxes at their lowest ever, our economy is tanking.  The country is losing its middle class, the backbone of the economy.  Plutocrats and oligarchs are making out, and the rest of us are being flushed into impoverished servitude.

It's backwards economics.  And I'm going fucking insane trying to figure out, why are we doing this ourselves?