| A small businessman would rather his customers had money than his lenders. |
| The Bush administration has substantially reduced taxes for the wealthy while offering only token tax cuts (if any at all) for working people. The theory being that wealthy investors will have money to lend to small businesses. These businesses will borrow money from "the investment class" to invest in equipment and hire more workers. Currently there is a glut of available investment capital. Interest rates are at record lows. Most businesses have excess capacity, and warehouses are full. There is no need to invest in more equipment and workers to produce more goods. Businesses do not need investment capital. What businesses need is customers with money to spend. When inventories are bought down by consumers, businesses will again begin hiring workers to produce more goods. Tax cuts for the wealthy produce investment capital which does nothing to help the current economy. Tax cuts for working people would stimulate consumer purchasing, which would jump start the economy. |
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