If decreasing taxes on the rich leads to prosperity for everyone....?

Question

...why has the disparity between the incomes of the rich and the poor grown during the era of the Bush tax cuts?

http://lawprofessors.typepad.com/business_law/2008/04/income-disparit.html

Answer 1

The disparity between the rich and the poor has grown because the rich are getting richer faster than the poor.  But that's ok as long as everyone is benefiting.  

Answer 2

The variable you aren't considering is that of total wealth. If the top people become three times as wealthy as they were, and the poor get twice as wealthy as they were, that's still increased wealth for both, even with the increased disparity. I haven't looked at it, and I'm sure snapshot peeks could "prove" either side of the argument, but there's the logic.

Answer 3

Because the poor always look for an excuse to spend and the rich look for where the poor are spending their dollars. Its called investing.

You spend $400 on a PS3 to play with. The investor looks at where you spend your money and says, I want to own stock in that company.So the more money is spent on PS3, the more money the investor is going to make. Same with oil stocks, banking, medical (and this is where your money should go), solar energy, etc., etc.

You can't condemn the rich for wanting to make money. You really have to examine how you are making the rich richer.

Answer 4

No, decreasing taxes for EVERYONE leads to prosperity.  What the Bush administration did was just move taxes around, less for the rich, more for the other %99.9 of us.    Moving taxes around just transfers wealth from one group toanother, less prosperity for %99.9, more for %0.01.    

Answer 5

For all their bluster of tax cutting,  what has happened under the almost eight years of the bush tax plan. DISASTER.  Equally, with all their talk of "redistribution of wealth" this is precisely what happened when they raided the social security trust fund to give the tax breaks for the rich.

Their theory of republicans economics has been exposed as a sham. So much for the idea of thinking that the rich create jobs if you give them incentives through tax breaks. The rich will never invest in large enough numbers to justify the advantage they have received under the republican tax plans.