The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Monday, August 10, 2015

Rand Paul Decrees You Are Suffering Income Inequity Due To "Not Working Hard"

The Eyes Depict The Soul

Huffington Post 8/09/2015
"The thing is, income inequality is due to some people working harder and selling more things," Paul told host Chris Wallace on "Fox News Sunday." "If people voluntarily buy more of your stuff, you'll have more money." 

Paul has proposed what he calls a "flat and fair tax," which would put a flat 14.5 percent tax on all types of income. An analysis by the Tax Foundation found that under the plan, households earning more than $1 million per year would see their after-tax incomes rise by 13 percent. Households earning between $50,000 and $75,000 per year, meanwhile, would see their after-tax income rise only by 3 percent. 

"Doesn't your plan massively increase income inequality?" Wallace asked. 

"It's a fallacious notion to say, 'Oh, rich people get more money back in a tax cut,'" Paul responded. "If you cut taxes 10 percent, 10 percent of a million is more than 10 percent of a thousand dollars. So, obviously, people who pay more in taxes will get more back.""We all end up working for people who are more successful than us," Paul went on, "and that's a good thing, that more money will be back in the economy."
And therein lies the Republican answer to an obvious economic problem that beset the nation in the early 1980s. Who served in the Oval Office between 1981 through the late 1980s? Hint: the nation's 40th US President promulgated and nourished an economic theory that without question led to the current income inequality as surely as he sold arms to Iran for hostages and to fund the Nicaraguan Contras. Linked for those too young to recall or for the political novice. 

Ronald Reagan and his adaptation of Paul Harvey's Trickle- Down Supply Side economics: Reaganomics. 

In 2014, The New Yorker's John Cassidy published a piece with six charts based on noted economist Thomas Piketty's position on Reaganomics.

Piketty’s Inequality Story in Six Charts


If you read the Cassidy piece you have a greater understanding of the scope and depth of Rand Paul's lack of acumen regarding matters of income inequality. Moreover, and more likely Paul is spewing common GOP strategy mantra when pushed to answer question that no politician can effectively answer. In much more simple terms Paul is doing what he and his Dad do best: spew inane verbiage while sharing undiluted manure  to their listeners. 

Now, think about Paul's remarks again.
"The thing is, income inequality is due to some people working harder and selling more things," 
Does the following graphics validate or refute Paul's asinine and insensitive remarks? Look closely at the Top 1% red trend-line and pay particular attention the time period fer 1976.

If you actually need more credible data to understand Rand Paul is as empty a suit as the GOP can muster, follow the PowerPoint slides from the Federal Reserve Bank.

The Federal Reserve Bank of San Francisco

Learn about the U.S. household income distribution as a jumping-off point for understanding income inequality. (Larger version)

Additional FRBSF resource information
"The Evolution of Top Incomes in the United States." FRBSF Video: Economics in Person (June 28, 2012).

"Rising U.S. Wage Inequality: Whither the Middle Class?" FRBSF Video: Economics in Person (June 28, 2012).

I doubt from his teen years forward Donald Trump never word as hard as the construction workers who now build his buildings. He cannot have worked as hard as his kitchen workers at his various failed casino enterprises. Additionally, there is no way Paul's comments stand to logic when we compare compensation levels of CEOs and pay scales of the vast majority of the CEO's employees.

Paul should be forced to address the lack of support for increasing the minimum wage as a matter of GOP policy. Maybe he should be forced to address gender pay inequity for 53 percent of the nation's a workforce: women. And, considering weak remarks regarding taxation, he should be forced to provide more definitive answers as to why the GOP refuses to increase taxes for the wealthy.

While inception income inequity predates the Bush "Dubya" years by two decades, all members of the GOP should be forced to view the following chart on a daily basis. There Great Bush Recession probably resulted in part from the vestige of Trickle-down GOPism.

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