Where the Dollars Go

Great article today by Robert Reich, former Secretary of Labor, on why giving tax breaks to the middle class makes more sense than giving them to the wealthy. Essentially the argument is that the problem with the economy is that there's not enough spending. Our industries are producing in great amounts and are capable of producing more--but if people can't buy the products, well, that production doesn't do us any good.

He stated " . . . the members of the royal class are spending about as much as they want to spend. No amount of extra money in their diamond-studded pocketbooks will cause them to spend much more. . . . The president's plan responds to the nation's two overarching economic problems -- overcapacity and widening inequality -- by worsening both."