Galbraith: The Income Gap Will Grow

James K. Galbraith comments on how Bowles-Simpson will increase inequality:

[T]he main Bowles-Simpson proposal is an assault on the middle class, the working class and the poor.

Cuts in Social Security will gradually increase poverty and early death among the old. Cuts in the mortgage interest deduction will further drive down home values while hardly affecting those rich enough to pay cash. Killing the Earned Income Tax Credit will reverse a highly effective anti-poverty program for working people. Meanwhile Bowles and Simpson hold the line on the top rate in the income tax, and they say nothing about a financial transactions tax. This is most revealing.

Budget-balancing is crackpot economics, yet these proposals illustrate clearly the true underlying goal. Increasing inequality, it would appear, is the point.

Thanks again, President Obama, for creating the Bowles-Simpson cat food commission debacle.  Dismantling the social safety net is exactly what the country needs when we are stuck at nearly double-digit unemployment.