And how Democrats can best defeat Republicans
Democrats need to point out that:
- Everyone knows that the wealthy are getting richer, the middle class is being hollowed out, and the poor are increasingly becoming desperate. Admit the fact that disastrous inflation is still with us. So, start with that.
- Only a Democratic Congress and White House can solve these problems. History tells us that the Republican Party and the Federal Reserve would make the economy worse for small businesses, the middle class and the poor.
- Today’s biggest causes of inflation are international and our government can’t solve them unilaterally. The best it can do is interact with other nations to reach mutually beneficial results. Swing voters can understand this if explained well.
- However, our government can and must reduce our most damaging nationally caused inflation. Wealthier persons create inflation when they buy large amounts of our nation’s resources, products and services. That’s the disaster that is going on today. Low and middle income persons also create inflation when they make more money and buy more things. But that is what we need more of.
- In the past, Congress has controlled inflation through tax and labor legislation, and the Federal Reserve by controlling money supply. Examples abound.
- Democrats reduced inflation in the past by progressively raising taxes on the wealthy and corporations, and by protecting workers rights. Republicans have always increased inflation for workers by cutting taxes on the wealthy, increasing their spending, and attacking labor. Examples abound.
- Donald Trump’s 2017 Tax Cuts and Jobs Act had an especially bad inflationary effect during a pandemic. It gave huge tax cuts for corporations and the rich, and small token tax cuts for workers. Of course, those whose incomes weren’t high enough to pay taxes got no benefits. Those on the lower end of the economic scale were, and still are, the ones most devastated by inflation. Still true and obvious.
- A Democratic Congress and White House would reduce wealth inflation by raising taxes on the wealthy and corporations, and use the money to finance infrastructure and programs that would improve our supply chain. Although wages are going up for the bottom half of Americans, they’re not enough to keep up with today’s total inflation. That is what Biden’s plan was from the beginning, but he quit selling it to the public and didn’t get support from his own party.
- When the Federal Reserve raises interest rates, it hurts small businesses, the poor and middle class because they are the ones who have to borrow money to buy what they must have. Raising interest rates actually helps the wealthy, because they benefit when others are priced out of markets, and there are more products and services available to them at lower cost. And the rich can pay cash for what they need, or, at a whim, for what want — like a trip to outer space.
- We need to make America great again, but when was that? It was between 1933 and 1980 when we created the greatest and most vibrant middle class in history. We had no middle class of consequence before that, and it’s been declining ever since. We had record high progressive taxes on the wealthy, government financed infrastructure, and other programs that increased incomes for workers.