Bad logic abounds in the Republican mindset. For a quick example, check out a recent CNN story about New York’s own Rudy Giuliani.
According to Giuliani, our country will lose money if CEOs aren’t allowed large bonuses. Quoted from CNN’s website:
If you somehow take that bonus out of the economy, it really will create unemployment…It means less spending in restaurants, less spending in department stores, so everything has an impact.
Initially, his logic may make sense. If money is not getting poured into stores/restaurants, then businesses won’t make money. But why do the money pourers have to be rich people? Spending money isn’t this burden that the super-rich are graciously shouldering for the rest of America. I’d be more than happy to take that money and spend it for them. And I’m sure that the 7.2% unemployed in this country would spend it too.
If a company’s CEOs don’t receive their bonuses, that money doesn’t just disappear – “bonus money” can be invested in the company. Employees wouldn’t have to be laid off, corporate growth wouldn’t have to be stifled, projects wouldn’t be canceled.
I remember when I was mayor, one of the ways in which you determine New York City’s budget, tax revenue is Wall Street bonuses.
This is stretching the truth, to say the least. “One of the ways” is a nice way of saying “We took it into consideration” without giving any qualifier on how important of a factor it was. New York’s state income tax rate for 2004 was 7.7% for the highest income bracket. In order for these bonuses to affect the state to the point of concern, the percentage taken by the state would need to be much higher.