Monday, June 30, 2014

Supply Side Economics As The New Bible In Kansas

The far right has not been able to take over the federal government but it has a program in place to take over state governments.  This article describes how a far right program to capture state governments, and put them in the service of the plutocracy, has led Kansas into a financial disaster area.  Economists, working for ALEC, which is the far right organization intent upon capturing state governments, convinced the governor that tax cuts, primarily for the wealthy and corporations, would stimulate growth in the Kansas economy.  Faster economic growth would produce more tax revenue for the state than what was lost from the tax cuts.  That is the myth that was sold to Ronald Reagan in the 1980's.  Reagan was forced to raise taxes when it turned out to be a myth.  Kansas may have to do the same thing.  The promised economic growth, and higher tax revenues, never happened.  The state budget is in deficit and its debt has been down graded by rating agencies.

The high priest of supply side economics, who sold the myth to Ronald Reagan, was part of the team that convinced the governor of Kansas to commit economic suicide.  Old charlatan's never die.  They just fade away.  Unfortunately for Kansas, ALEC found a way to bring a discredited myth, and the economist who created the myth, back to life.  Where there is a will, there is a way, and ALEC is intent upon capturing state governments, particularly in red states which have compliant governors and cooperative legislatures.  ALEC will get lots of help from conservative think tanks that helped to sell the failed tax program to Kansas.  The tax supported think tanks provide a home for economic cranks who supply the economic mythology needed by ALEC.

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