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Tax the rich, and invest in U.S.A.'s middle class

Richard E. Metayer Mystic

Publication: The Day

Published 02/19/2013 12:00 AM
Updated 02/18/2013 04:46 PM

We are not recovering from the "Great Recession." The major problem is unemployment and underemployment. The cause is lack of demand.

Why? Because the middle class doesn't have the money. The top 1 percent owns more than one-third of the nation's wealth. In 2007 the top 20 percent earned after tax more than the bottom 80 percent. The top 1 percent gained 93 percent of the additional income of 2010.

Now let us look at the 99 percent.

House prices fell by more than one-third from 2006 through 2011 (worse for minorities). The income of a typical worker has stagnated for the last 30 years (inflation adjusted).

If we are to recover, we must increase taxes on the wealthy and increase spending on government programs that get people back to work and raise the Gross Domestic Product (GDP). This is what helped get us out of the Great Depression. It's Economics 101.

Don't believe that tax increases reduce investments; history shows otherwise. (Note: President Clinton era!)

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