The cuts also juiced irrational exuberance on Wall Street. Giving a huge tax advantage to investment income inflated the dot-com bubble, observed Stiglitz, “by making speculation more attractive.” And by eliminating capital gains taxes on home sales, the cuts fueled the housing bubble: A study by the Federal Reserve estimated that the tax giveaways boosted housing transactions by 17 percent through 2007.
Looks like every “rich” country (including France) went down the same alley. So if we know where this came from, and how to fix it (fix tax loopholes, and increase taxes for the rich), then why our “leaders” tell us that we should pay for those guys? Are they naïve/stupid/corrupt? Do they still believe that people sitting on piles of money are going to magically create tons of jobs by intelligently spending their money? I believe that the majority of them just don’t care. They speculate ; They prefer to employ useless people to make the best of tax loopholes ; They just want more of it, and they’ll find every way to have it all.
Our beloved politicians need to step up and fix this, or be replaced.