A Bit of Schooling for Red Scare Bots

Once again, new numbers indicate that corporate profits are at an all-time high, and employee wages just hit an all-time low (as a percentage of GDP).

Way too many ignorant Republicans believe the president is a communist, harkening back to the Red Scare era of disgraced Republican fearmonger Joe McCarthy.

If the president were really a communist, these numbers would be significantly different. Corporations would be entirely owned by the government and workers would be paid the same wage. Instead, business is booming and, due to a lack of regulation, corporations aren’t investing profits in hiring new workers.

In fact, corporations are sitting on record cash assets therefore logic dictates that tax cuts won’t convince them to spend more money on workers if the Bush tax cuts (the largest tax cut in history) didn’t motivate them either.

Duh.

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  • chris castle

    My wife, who does inside sales for a major corporation, has no back-up at work and, as a result, barely has time to take a lunch. The firm will not hire more staff, but yet they report record profits.

  • i_a_c

    Certainly, Obama is the most anti-business president in history, what, with record profits and the Dow Jones nearly doubling since his inauguration.

    Wait a minute. Could someone (preferably in the media) try to reconcile this? How can it be that companies are sitting on fat wads of cash but aren’t hiring anybody? Isn’t that Money’s entire economic platform? Doesn’t he say that they need another $5 trillion tax cut?

    Apparently this incongruity goes right over the heads of Chuck Todd and Mark Halperin.

    On a side note, remember that “gaffe” where Pres. Obama said the private sector is doing fine? Yeah.

    • Brutlyhonest

      Beat me to the private sector is doing fine. I’d love to see an ad running against the rmoney scary ad that lays out just how well the people with big money, i.e. the private sector, are doing. Instead, I just see an endless flood of anti-obama attack adds funded by the flood of money that isn’t corrupting, or appearing to corrupt (see supreme ruling against montana), politics.

      Someone read my emails and they’re countering! http://www.huffingtonpost.com/2012/06/25/obama-campaign-doing-fine_n_1623809.html

  • bphoon

    Sorta pokes a hole in the supply side economic theory that holds that supply will create its own demand. I wonder if Arthur Laffer ever wonders why, given the profit position of and the amount of cash held by private businesses these days, these guys don’t just willy nilly start hiring people and stocking up their shelves with all sorts of flotsam and jetsam?

    Question for all you supply-siders out there: If job creation hinges on tax cuts for the wealthiest among us, and they have benefited from lowered tax rates since 2001, where are all the jobs?

    Hmm…crickets…

  • D_C_Wilson

    Billionaires can’t create jobs without another tax cut, but they sure don’t have any trouble cutting multi-million dollar checks to the Romney campaign faster than the Duggars can get pregnant.

  • nathkatun7

    Thank you Bob for finally writing about the fallacy that corporations, and all the rich people in general, are job creators. You would think with the record profits corporations are sitting on we would have had more jobs created by now. Not only that, corporations, and the rich people in general, have enjoyed tax cuts since 2001 yet the country is still suffering from high unemployment? Sadly, our tabloid media never see fit to ask Republicans why is it that the so called “job creators” are enjoying record profits but are still not creating jobs?

    I am not an economist but I have common sense. Any one who believes that laying off public workers (teachers, cops, firefighters, garbage workers, social workers, and other civil servants) creates jobs and reduces unemployment needs their heads examined. By the way, the last time I checked all these public employees are consumers who spend their money supporting private businesses. Public employees buy/rent homes, buy groceries, buy cars, buy clothes, put their money in banks, retirement plans, and some even save money to invest in stocks. Exactly why is laying them off good for the economy and for lowering unemployment?