Intellectual Squeeze

Excellent piece by Charles Hugh Smith via Zero Hedge, which presents clearly that as governments squeeze the top earners, who are also the employers, through taxation and regulation, it is in fact the middle class and lower income earners ( just the folks the rhetoric claims to attempting to help)  who pay the price.  Simply put, when you tax something, it produces less utility; or it cost more.

Charles Hugh Smith/oftwominds.com

It is simply to observe the lack of knowledge the low information crowd has in the realm of basic economic theory.  A classic example of this is the recent protests in front of fast food chains, demanding a higher hourly wage because the employer can supposedly afford it, rather than due to superior work performance by the employee.

Extra costs placed on corporations, or employers, are not just simply absorbed.  They place reductions on revenues, profits and limit choice, each of which negatively affects the consumer.  In fact, the pain is greater upon those who can least afford it; the low income/information crowd.

If the a large faction of the citizenry fails to recognize terrorist organizations of evil aiming the destruction of the US, we certainly cannot expect them to grasp basic economic principles.

Even at upscale and elite Harvard University, we have mind boggling levels of intellectual vacancies.