Facts--How we compare right now. From Obama speech at Forsyth Tech.

Here are some facts that everyone should think about:

". . as it stands right now, the hard truth is this: In the race for the future, America is in danger of falling behind. That's just the truth. And when -- if you hear a politician say it's not, they're not paying attention. In a generation we have fallen from 1st place to 9th place in the proportion of young people with college degrees. When it comes to high school graduation rates, we're ranked 18th out of 24 industrialized nations -- 18th. We're 27th in the proportion of science and engineering degrees we hand out. We lag behind other nations in the quality of our math and science education.

When global firms were asked a few years back where they planned on building new research and development facilities, nearly 80 percent said either China or India -- because those countries are focused on math and science, and they're focused on training and educating their workforce. "

These quotations are from the speech President Obama gave at Forsyth Technical Community College at Winston Salem, North Carolina on December 6, 2010.  Transcript is at this link: 

http://www.chicagotribune.com/topic/wghp-story-obama-transcript-101206,0,3385092.story?track=rss-topicgallery

He also included this somewhat more upbeat statement:

"Now, in the last century, America was that place where innovation happened and jobs and industry always took root. The business of America was business. Our economic leadership in the world went unmatched. Now it's up to us to make sure that we maintain that leadership in this century. And at this moment, the most important contest we face is not between Democrats and Republicans. It's between America and our economic competitors all around the world. That's the competition we've got to spend time thinking about. (Applause.)

Now, I have no doubt we can win this competition. We are the home of the world's best universities, the best research facilities, the most brilliant scientists, the brightest minds, some of the hardest-working, most entrepreneurial people on Earth -- right here in America. It's in our DNA. Think about it. People came from all over the world to live here in the United States. That's been our history. And those were the go-getters, the risk-takers who came here. The folks who didn't want to take risks, they stayed back home. (Laughter.) Right? So there's no doubt that we are well equipped to win."

Who is it that believes tax cuts for the rich creates jobs?

The economist for President Kennedy, John Kenneth Galbraith, supported lowering the tax rate on the wealthy from more than 90%.  He later rote many books saying that should only seldom be done and that the tax cuts under Reagan should not be done.

The Budget Director for President Reagan who promoted reduced marginal rates on the wealthy ,  David Stockman, has been on CNN, CBS 60 minutes and other major network interviews recently saying that taxes on wealthy should be increased. By the end of the Reagan administration the tax rates had been raised.

Recent polls report that more than 50% of population do not want to extend the cuts for the wealthy.

Empirical evidence shows that tax cuts on the wealthy do not stimulate the economy but may in fact depress it. See the charts I posted earlier.

Reports are that $ trillions are now available from banks, funds, venture capitalists and the wealthy for good investments.  The argument that there is insufficient capital for investment is specious. The problem is lack of demand not lack of supply.

The wealthy do not support reduced taxes on themselves, at least those who are willing to speak about it including  Bill Gates, his father and Warren Buffett.

Reported estimates are that only 30% of money from tax cuts to the wealthy actually enter the economy.  So they are depressive not expansive. Tax cuts to the lower income segments including unemployment benefits are all spent and are reported to create $2 of activity for $1 spent.

So, who is it that really wants to see the taxes reduced on those making more than $1 million?  It seems to only be the Republicans in congress and what James K Galbraith (economist like his father John Kenneth Galbraith) defines as the Predator Class. See his book, "The Predator State."  The Congressional Republicans appear to be servants of this Predator Class.