It is incredible to me that we are still having this debate after all we now know about the world financial collapse and its cause.
But we are nonetheless, so when I saw former Congressman Bill McCollum, R-Fla, on the television saying that he, Newt Gingrich and the Republican party believe wholeheartedly in supply-side economics and want to return to this failed policy if they get back into power, it really bothered me.
Let me tell you what is wrong with this ideology. Supply-side economics, or trickle-down economics as Ronald Reagan called it, simply does not work. Yes the rich get richer, but it never trickles down like it is supposed to do. What happens, and in fact what did happen when the trickle-down model was foisted on the American people, is best shown by the actions of Willard "Mitt" Romney. He made a lot of money in the private sector, and no one, especially not me, objects to him making money. That is the American way. But the problem started when instead of Mitt reinvesting his millions into a brick-and-mortar business or taking a chance on a young entrepreneur, or purchasing municipal bonds, which would be good for his country and its economy, he instead put his money to work making money, through hedge funds and the purchase of "exotic financial instruments" or "credit default swaps," which are just made-up things to avoid the taxman and the regulators, or worse, tucking it away, out of the sight and reach of the IRS in numbered Swiss accounts and Cayman Islands Banks, which does nothing for America or its economy and is about as un-American as you can get.
The U.S. and European law enforcement agencies have said there are only two reasons that someone would put money into these offshore accounts, one is to hide the money from the IRS and the other is to hide where the money came from. All the rich are doing what Mitt did. It is no wonder the economy failed, because all the money made at the top is untaxed and outside the U.S. borders leaving the struggling middle class holding the bag.
James F. Gilbert