25th July 2010, 3:41 PM
Well, Republicans are for lower taxes in general, including the poor, which does put more money in their pockets. It's just that they're usually also in favor of lowering the taxes of the wealthy, which need it the least.
To play Devil's Advocate, their policy is of a more laizsez faire economic model, where lower taxes means that corporations can invest more money, create new jobs, and allow it to be a trickle-down effect, because it means more jobs for everyone. Which in theory sounds good, but if you don't keep strong regulation on the economy, we end up in a recession like we are now.
The problem is, over the last few decades, people have been working longer hours, while wages have stagnated. Profits and salaries for CEOs are higher, but the middle and lower classes haven't reaped as many benefits for this trickle-down effect. I can't really say whether it has made job-creation flourish because I'm not well-versed enough in economics, but there must have been some positive effect on businesses expanding. We just need more populist-focused policies so we can help everyone, not just the people who need help the least.
To play Devil's Advocate, their policy is of a more laizsez faire economic model, where lower taxes means that corporations can invest more money, create new jobs, and allow it to be a trickle-down effect, because it means more jobs for everyone. Which in theory sounds good, but if you don't keep strong regulation on the economy, we end up in a recession like we are now.
The problem is, over the last few decades, people have been working longer hours, while wages have stagnated. Profits and salaries for CEOs are higher, but the middle and lower classes haven't reaped as many benefits for this trickle-down effect. I can't really say whether it has made job-creation flourish because I'm not well-versed enough in economics, but there must have been some positive effect on businesses expanding. We just need more populist-focused policies so we can help everyone, not just the people who need help the least.