"Economically, the 'progressive' income tax is completely unjustifiable, as the wealthy invest disproportionately in economic (and job) growth, while lower income people spend more on consumption goods."
That's bass-ackwards. All the money in the world can be available to fund companies; if there's no money to realize demand, it'll sit around unused. If there is demand for goods and services, people can borrow money to provide it, to be paid back out of the revenue stream. That's healthy. What we've been doing lately (and more especially pre-crash) is borrowing to consume instead, and as you say, "borrowing to finance regular spending will eventually fail as a policy" - as partly evidenced by the crash.
That's bass-ackwards. All the money in the world can be available to fund companies; if there's no money to realize demand, it'll sit around unused. If there is demand for goods and services, people can borrow money to provide it, to be paid back out of the revenue stream. That's healthy. What we've been doing lately (and more especially pre-crash) is borrowing to consume instead, and as you say, "borrowing to finance regular spending will eventually fail as a policy" - as partly evidenced by the crash.