Friday, March 29, 2013

The Rich Poor Divide and the Obama Administration

Progressives hate income inequality. It eats at their souls. It obsesses them. The progressive Obama administration has shown that it would rather wreck the world economy than pass up a chance to raise taxes on the rich.

Despite this, the gap between the rich and the poor is growing? Blame the Progressives in general and the Obama administration in particular.

Little attention has been paid to the Obama administration's actual efforts to stimulate the economy. These are separate from the stimulus. They consist mainly of pouring money into Wall Street in the hopes that it will trickle down to the rest of the economy.

The Obama Administration has been keeping interest rates near zero for years. This allows banks and other financial institutions to borrow money at almost no cost then invest it in high-return investments, many in the so-called shadow economy. Worse, these institutions have been deemed too big to fail so the government will bail them out of bad investments. Worse yet, the Obama administration has admitted that it will not prosecute illegal investments because that could cause a "loss of confidence".

The amounts involved are huge and the profits are too good to pass up, especially since the government has eliminated the risk. So everyone involved is getting richer and richer. This has nothing to do with Bush tax cuts or Republican policies. The Republicans have been pushing to remove the safety nets and let the banks rise or fall on their own.

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