I've left the following comments:
July 17, 2011 at 1:12PM
Several corespondents have already pointed out the blatant context-dropping, selective use of facts, and outright falsehoods employed by the editors. Here are a few more:
The 1950s economy limped along through three recessions. So anemic was it that JKF ran his 1960 presidential campaign on a promise to “get America moving again”. The 1960s featured accelerated growth after Kennedy cut tax rates from 91% to 70%.
The Reagan tax cuts brought rates down from 70% to 28%. Tinkering by the Bush –Clinton--Bush administrations bounced those rates around between the upper 20s and upper 30s, but all three presidents left the bulk of the Reagan cuts essentially in place. Those cuts were a prime reason for the 1982-2000 economic boom that saw interest rates, inflation, and unemployment all trend steadily downward from double digits simultaneously – a feat that Keynesianists thought to be impossible. Clinton benefited enormously from that boom, especially after the 1994 Republicans aborted his statist schemes and pushed him to the “Right” on economic policy (ex. welfare reform, spending restrain, and capital gains tax cuts). Of course, as Melland points out, in retrospect the beginning of the housing bubble – of which Clinton and Bush share equal blame – “helped” Clinton also.
The 2001-03 “tax cuts for the rich” vastly benefited the middle class, lowering the average family’s tax burden by tens of thousands of dollars over the past decade, even as those cuts were justly spread across all income brackets.
But the Bush rate cuts – the most important aspect economically - were small. The benificial effects of those meager rate cuts were overwhelmed by other factors. The real reason for the sub-par economy of the 2000s was the terrorist attacks and subsequent onset of war, along with Bush’s large increase in government regulation, government spending and deficits, trade barriers, the draining away of investment resources to feed the government-induced housing bubble, and the subsequent bust.
The editors ridicule private job creators, as any statist who worships government must. But jobs come from somewhere – that somewhere is the energy and ability of business creators and growers. Government can not create real, productive jobs. It can only shift resources by force from some people to others, and then claim credit for the jobs “created” by the politically favored recipients of that largess but paid for by the killing of other jobs drained from those who finance government spending.
The polls may or may not favor tax hikes on the wealthy. But sound economic policy is not determined by public opinion polls, or the moral perversity of any hypocrite who beats the drum for higher taxes, but only on the other guy.
I can't pass up the chance to make a few remarks regarding this:
David_Hinderer_298 July 18, 2011 at 10:42AM
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Tax increases would be an incentive for the rich to create jobs once to see their wealth dwindle. Raising taxes would provide some motivation. They are under no preassure to create jobs since they getting richer for not doing but collect interest from their investment.
I've seen this view before. Put simply, Hinderer is essentially saying that theft is good, because it will provide an "incentive" to go out and work hard to replace what has been stolen. I trust that if a burglar robbed Hinderer's home, he would not file charges. Instead, he would be thankful, since it would encourage him to work to replace the stolen goods!
Only a slave mentality would conceive of so hideous a rationalization for tax increases.
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