Political Economy category archive
Thom explains that, for Big Pharma profits, a cure is worse than the disease.
Paul Krugman discusses the economic divide that powers Trumpery and Republicanism. He points out how voting for Donald Trump and his enablers and sycophants is likely to have precisely the opposite effect that his supporters desire. A snippet:
And when it comes to national politics, let’s face it: Trumpland is in effect voting for its own impoverishment. New Deal programs and public investment played a significant role in the great postwar convergence*; conservative efforts to downsize government will hurt people all across America, but it will disproportionately hurt the very regions that put the GOP in power.
This, of course, is why the Republican Party focuses so much on cultural issues and the politics of hate. They know their economic goals cannot pass muster.
Follow the link for the complete article.
*That is, between poorer and richer states after the Depression and up till Reaganomics.
At El Reg, Kieran McCarthy deconstructs Donald Trump’s tirades against Amazon. A snippet:
In 2016, it (Amazon paid in state, local, and federal texes–ed.) paid $412m; in 2015, $273m; in 2014, $177m. As the company grows and brings in more revenue, it pays, well, more in taxes. There are companies that make far larger profits – like General Motors and United Airlines – but pay next to nothing in US income taxes.
Not that Amazon pays a large sum as a percentage of profits. According to an extensive market analysis of the company last year, Amazon pays an overall 13 per cent in federal, state and local taxes. This is much lower than the average large company – which pays around 27 per cent – so you can imagine why Trump is furious.
If, that is, you ignore his persistent calls for a 15 per cent corporate tax rate.
Full disclosure: I am not a fan of Amazon and its attempt to assimilate American retail. I avoid using it as much as possible, but I do use it from time to time, primarily for books.
David Dayen’s article mentioned in the video is here.
Paul Krugman notes a disturbing trend (one among many) at Donald Trump’s White House: The devolution of “advisers” into “yes-men.” The article focuses on Trump’s economic adviser, Peter Navarro.
Here’s a bit (emphasis added):
Ben Sprage reveals the con hidden (not very skillfully) in Donald Trump’s “infrastructure” plan:
But make no mistake about it: Trump’s ultimate goal is to shift the cost of infrastructure improvements directly to ordinary Americans through their property taxes and state income taxes. Further gaps will likely be paid for by all of us through increased road tolls and additional surcharges when traveling by plane, rail or boat. Fewer projects likely will take place, and the ones that do will cost more for ordinary citizens, who already pay a good deal in taxes each year.