Is the economy of the United States an illusion? Ask the experts; ask working class Americans. The success of the stock market is an indicator that the wealthy are doing well, but in no way reveals the struggle of one-half of all Americans who are considered low-income and impoverished.
However, a market crash affects all Americans; a loss of jobs, and eventual rationing of the necessities of life.
Jerome Powell is the Chairman of the Federal Reserve. Federal Reserve intervention in the U.S. financial system has increased since September, and the trend is expected to continue.
Fed Chair Jerome Powell admitted the dangers of an ever-expanding balance sheet all the way back in 2012 but seems to be strangely silent on the subject today.
Surging stock prices represent one area of the market experiencing excess and imbalance as a result of the Fed.
Federal interference in market growth can be credited for the current surge. In 2012 Powell warned against such actions believing that the result could be a huge crash and expose the illusion of a ‘great economy.’
In 2019 the national debt rose by 1.2 trillion dollars. Not a single word or warning has been uttered by the right-wing who claims to be the party of conservatism. The primary reason for this all-time record is undoubtedly the result of an ill-advised excessive tax cut for corporations and the super-rich.
The top corporate tax rate was reduced from 33 percent to 25 percent. Prior to Trump’s “tax reform” the actual percentage paid by corporations stood at an average of 18 percent. In 2019 the largest companies, including Amazon and Wal Mart paid zero taxes. No economy can flourish without participation by those who most benefit from doing business in America.
Now add to these facts Trump’s personal spending. He and his Klan have averaged expenditures of approximately 16 million dollars each month. The need for expanding the budget of the secret service along with other costs such as reimbursing local law enforcement for overtime pay and other related necessities.
Trump’s incessant excursions to his millionaires only club, Mar-a-Lago, combined with trips to other golf resorts and endless hate rallies needed to soothe his fragile ego are the biggest reasons for such enormous government waste. The cost of operating Air Force One alone exceeds $200,000 per hour. Once again, no complaints from fake conservatives.
Since Ronald Reagan’s administration from 1981 to 1989, and subsequent Republican presidents, including Bush 41 and Bush 43, the fiscal policy of “trickle-down economics” has failed miserably. The truth is that all Americans benefit when Democrats are in control of America’s government. Under Republicans only one percent of our nation’s people enjoy all of the privileges of living in America.
“The Truth Lives Here”
Op-ed by James Turnage
Photo courtesy of the Federalreserve
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