From: Gerald Levy (jerry_levy@verizon.net)
Date: Sun Jul 27 2008 - 10:36:49 EDT
Hi Phil: Here's the analysis from a recent article on the current crisis which I referenced in my last post and objected to: "Unless the government goes back on this implicit guarantee, the lion's share of mortgage losses will now be paid by U.S. taxpayers, in the form of interest payments on the extra funds the Treasury will need to borrow inorder to cover these losses. This does not mean, however, that the working class will ultimately foot the bill. Under capitalism, wages and salaries are ultimately governed by economic laws that higher taxes do not suspend.Thus, the extra government borrowing isn't likely to have much effect on the*after-tax* income of working people. If taxes increase, their pre-tax incomes are likely to increase as well, so that the bill will ultimately bepaid by employers". You don't accept that nonsense, do you? In solidarity, Jerry _______________________________________________ ope mailing list ope@lists.csuchico.edu https://lists.csuchico.edu/mailman/listinfo/ope
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