There are a thousand hacking at the branches of evil to one who is striking at the root. ~ Henry David Thoreau
Revelation: that the sheer size of the hoarded cash held by not only the big banks (with others not worthy of the name but awarded the function who happily collect the interest), but also industry including manufacturers means that they have absolutely no need for any tax cuts.
Clearly, the industrial portion of the new hoarder class, which these days means more service industries than ever before, is demand driven in terms of investment. In other words, their products are produced in relation to the ability of consumers to spend what is generally disposable income (excluding real estate) to acquire them.
Emergency stimulus programs, which have nothing in common with "bailouts" have had exponentially beneficial effects on the economy by enabling more labor intensive projects. These projects in turn create favorable returns on our public investments in people, who in turn give back to the above producers by buying their goods. This is how the cycle works, in contrast to the imaginary (and discredited as sham by it's very creators) "trickle down" economics to which the Teapubican party wishes to emphasize a phantasmagorical return.
The problem with the present administration's stimulus program is that no one at the time, meaning economists and others, was able to adequately gauge how deep and how wide that tremendous recession actually became. Therefore, the stimulus, politically limited by the beginning of the execution of Teapublican strategy to become not representatives of the people but of huge corporations and special interests, was not nearly large enough.
Teapublican obstructionism by non participation in the normal democratic process by voting as a partisan block against practically anything forwarded by the POTUS or other creative Democrats in the House, and enormous amount of filibusters in the Senate, all for political gain, ruined any chances we had for job creation leading up until this election.
The disloyal opposition has now hurt the Republic than any little group of foreign or domestic terrorists could dream of inflicting. Millions of people out of work are used as political semantic pawns by these disloyal partisan obstructionists in their constant lies claiming that the man with only the "bully pulpit" is to blame, not the fools in the Congress who hold the purse strings. I mean if you can not even lead the elephant to the water, how is he going to drink it all in and support again our nation ?
Unnecessary tax cuts, as outlined above, are now deemed to be off the mark when what is needed to ramp up demand is clearly government spending that targets job creation en masse. The Jobs Act and infrastructure spending that was being advanced by President Obama and critically needed by our country is not in favor by the current House of Misrepresentation and the Senate filibuster prone parliamentarians (although we do not have a parliamentary political system).
So whom do OUR so-called representatives represent ? Their primary clients clearly do not include the American people. The midterm elections of 2010 have done more damage than perhaps even the displeasured voters responsible for sending in the clowns realize. Now we are reaping what they have sown.
Therefore, the trillions banked by all the corporations under the sun have no need of deregulation or tax cuts. Those trillions need to be invested, and soon. That infers that we need tremendous support for increasing demand, and immediately so. Who provides that kind of support ? Government spending does.
Industry can not, and will not, for mainly business reasons but also some ideological boldly invest their available capital at the present time. This is in spite of the fact they are aware that they could reap much larger profits from investing the hoarded cash than simply collecting the wimpy interest. The low interest payback is made more substantial by the sheer size of the stash, but still pales in comparison to the risk taking of putting the stash to work that often yields handsome returns. What they need to remember is that they must invest in American products and workers, not in off shoring the companies' operations or outsourcing the actual work overseas either.
They are only burying their locked treasure chests further into the sand at the moment. How long do they have to keep timidly holding on to their investable cash until the American public realizes this and demands that government applies all the influence that it can ?
The new hoarding class are NOT the "job creators", people who become workers and by definition consumers are. And Congressional intransigence equals no growth. Anything else other than the last two premises is simply pandering to special interests and not relevant to the critical interests of the American people.