Final yr, Robert Reich posted a video on his Fb web page that he had recorded a number of years earlier, that shortly took social media by storm. Within the viral video, the writer of “Saving Capitalism,” and the Web’s hottest economist (judging by his million+ followers) lists the 7 largest financial lies that Republicans like to inform America, and shortly debunks them with details.
As the newest GOP Tax invoice, which is extensively being decried as a large giveaway to the wealthy that may add $1.7 trillion to the federal deficit, is shortly driving via congress and Trump’s pen awaits, we thought it was a great time to re-run this necessary video.
Robert Reich makes it clear, that when Republicans begin making an attempt to promote us the identical previous tax cuts, trickle down, and security internet slashing, the arguments for them are based mostly on lies. Maybe better of all, he destroys these lies with lovable cartoons and pithy remark.
Under, you’ll be able to learn the transcript of the video, with the lies that Robert Reich lists and his responses.
1. Tax cuts to the wealthy trickle down on the remainder of us.
“Flawed. Each Ronald Reagan and George W. Bush reduce taxes on the wealthy and nothing trickled down. The truth is, adjusted for inflation, the median hourly wage stagnated and dropped.”
2. Excessive taxes on the wealthy harm the financial system.
“No. Take a look at historical past. The highest tax price was over 70% between WWII and 1980 and the financial system grew quicker than it has since. Small enterprise house owners who create most jobs gained’t be deterred by larger taxes. Fewer than 2% of them are within the prime tax bracket.”
three. If we shrink the federal government we’ll create jobs.
“No. A smaller authorities means fewer instructor, firefighters, social staff, cops, and everybody else who delivers public providers. And fewer jobs for everybody working for corporations that authorities pays to construct and keep roads, bridges, transit techniques, and faculties.”
four. Slicing the price range deficit is extra necessary now than boosting the financial system with further spending.
“Flawed. The lengthy-time period objective is to scale back the debt as a % of the financial system. Until we get jobs and progress again, that ratio worsens, so we’d like jobs and progress earlier than we reduce something.”
5. Medicare and Medicaid are killing the price range.
“No. Their prices are rising as a result of healthcare prices are rising. And one of the simplest ways to get healthcare prices beneath management is to make use of Medicare’s bargaining leverage to get decrease costs on medicine, medical provides and hospitals, and to maneuver from payment for providers to payment for wholesome outcomes. And since healthcare has decrease administrative prices than personal insurance coverage, open Medicare to everybody.”
6. Social Safety is a Ponzi scheme.
“Incorrect. It’s strong for 26 years, and can be for the subsequent century, if we lifted the ceiling on revenue topic to Social Safety payroll taxes.”
7. It’s unfair that decrease revenue People pay decrease revenue taxes.
“Mistaken. The unfairness is decrease revenue People pay a a lot greater portion of their incomes in Social…