As several economists have told me, we get the economy we want. If we think the economy is good, we will buy what we want or need. Our purchases will increase sales for retailers. That will increase manufacturing, and the economy will thrive. As a result, tax revenue grows and our deficits decrease.
On the other hand, if we think the economy is going to be bad, we will restrict spending and increase saving. If enough people do this, our economy will be pushed into recession, jobs will be cut, tax revenues drop and our deficits and national debt will grow.
Most people know this, especially large corporations, the wealthy and politicians. And they often manipulate these principles in order to cash in on easy money. The losers of this sort of manipulation are almost always ordinary working people.
Everyone knows about the principle of buy low, sell high. So if youre among the wealthy and powerful, it doesnt benefit you if the economy grows at a steady, sustainable rate. In order to really cash in, you need to create periods of high growth, followed by recessions. In the midst of a recession, you buy low. Then at the peak of growth, you sell high. Thats why a chart of our economic history looks like a ride through the Rocky Mountains.
The interest of the wealthy and powerful is obviously money. But why would politicians be interested in such a strategy of manipulation?
In a word, Power.
If the opposition is in power, the GOP (Guardians Of Privilege) starts screaming about inflation, deficits, debt and other issues in order to frighten ordinary people. If they scream loud enough and long enough, a large percentage of our population will hold onto their cash in preparation for the coming calamity and delay purchases. As a result, the economy struggles.
Thats whats been happening for the past 3+ years.
In order to make President Obama fail, Teapublicans have howled about outrageous deficits. They talk about saddling our grandchildren with oppressive, overwhelming debt. Theyve scared voters about illegal immigrants taking their jobs. Theyve talked about an out-of-control government and the end of freedom.
Unfortunately, the Tea Party, the religious right and others have scooped up this load of dung as if it were gold in the streets.
The only way to avoid being buried by the dung is to call it what it really is. And to let everyone know that the people spreading the dung are the southern-most end of a north bound elephant.