DEMOCRAT POLITICIANS DO NOT UNDERSTAND HOW THE AMERICAN ECONOMY WORKS

President Joe Biden touts his “Bidenomics” as being a great success in turning around the economy but Americans aren’t buying it.  No one has defined exactly what “Bidenomics” is so I assume it’s deficit spending trillions of dollars.  Inflation had been as high as 9.1% under Biden’s presidency, though it has come down significantly, probably due to the huge tax rate cuts for both individuals, businesses, and corporations that president Trump fostered and passed via the Tax Cuts and Jobs Act.  Biden and the Democrats will end the tax rate cuts as soon as they can but the tax cuts will expire in 2025 anyway. The problem of the Democrat Party not understanding how the economy works is not new. It’s been that way for a very long time.

The Democrat and the Republican parties, have completely opposite ideas and policies on growing the economy and creating jobs, but it’s difficult to understand how this can be.  No longer simply theory, but proven time-and-time again to work, cutting tax-rates and cutting regulations stimulate the economy and creates jobs to the extent that the additional tax revenues generated from the rate-cuts usually exceeds the cost of those rate-cuts. This is exactly what happened with the Trump tax rate cuts to the extent that even efter the Covid pandemic locked down the ecenomy, once it opened back up (when Joe Biden was President), jobs snapped backed.

President Kennedy did this, as well as Presidents Reagan and Trump.  Why doesn’t the Democrat Party understand this, but instead sticks with Keynesian economics which allegedly doubled the duration of the Great Depression in the 1930s?  Also, many Democrat Senators and Congressmen  embrace Socialism, which has destroyed every economy that has fully embraced it (currently Venezuela).  Understanding the economics of it is so simple that I can only conclude that the Democrat Party doesn’t want to understand it, but why not? (see Marco Rubio’s book, American Dreams; and Arthur Laffer and Stephen Moore’s book, Trumponomics)

One of the constituencies that the Democrat Party claims is the poor.  The Democrat Party’s policies, however, keep the poor being poor (see Jason Riley’s book, Please Stop Helping Us, and William Voegeli’s book, The Pity Party)  On the other hand, “Supply-side” economics (see Milton Friedman’s book, Free to Choose)  pulls up many of the poor into the working class, middle class, and some will even become wealthy.  When this happens, they frequently no longer vote Democrat.  It’s therefore in the Party’s self-interest to keep people poor, keep them victims, keep them envious and vengeful, have them believe they’re the victims of racism, discrimination, etc.

Another reason I believe the Democrat Party  wants everyone (except themselves) to be poor is that it strongly encourages equality of results or outcomes (called equity, not equality)  and with their preferred economic system (socialism), everyone except government and political officials, will eventually be equal but equally poor (ask citizens of Venezuela).

The most recent evidence that this is so was the relentless attacks against the huge Trump and Republican tax-rate cuts, using the phony pretext that the cuts only benefited the wealthy.  Since the wealthiest 1% of the population pay about 37% of Federal income taxes and the top 10% pay about 70%, they receive the largest reductions in taxes, though they are just a small amount of the population.  In addition, lowering the corporate tax rate from the very highest in the world, 35%, to a much lower and more competitive rate, 21%, benefits not only the stockholders of the corporation but all of the people that a corporation employs, as well.

It’s far past the time that the Democrat Party changes its posture on stimulating the economy and creating jobs based on reality.  Actual great results have been achieved every time by reducing tax-rates and regulations and usually pay for themselves in generating greater tax revenues.

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