Well…yeah, I know, I stole that from Al Gore but it does describe the situation here in Michigan where the misguided repubs are betting the future of job growth on tax cuts for business while raising taxes on everyone else. This idea came from a couple of columns I read this morning and caused some of the econ 101 memories to come back to the top of my head. One of the articles was by Brian O’Connor in the Detroit News…yeah, I know, with an article going against the repubs line, where is he going to go to work next? The article dealt with the repubs claim that tax cuts for business will cause the cost of labor to decrease so business will hire more people, and he used the example of a conversation with the owner of one his favorite pizza places; when asked the question, the owner wanted to know what corporation would be buying the extra pizzas he needs to sell to justify hiring new employees and expanding his business. With tax increases on everyone else, the first thing to go in discretionary spending is eating out, and without an increase in demand for his pizzas, no amount of tax cuts will make him hire even one more person.

This points to the inconvenient truth that the repubs don’t want anyone to think about…with tax cuts for business and increases for everyone else, demand is going to fall and no business is going to hire in the face of decreasing demand….gov Snyder might have made millions selling off Gateway, but he and his administration are acting like the truths of economics can be trumped by belief….a recipe for disaster for our state and country….geez…