Posts Tagged ‘Keynesian economics’

DEMOCRAT LEADERSHIP DOES NOT UNDERSTAND HOW THE ECONOMY WORKS!

The Democrat and the Republican Parties have completely opposite ideas and policies on stimulating 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 stimulates the economy and creates jobs to the extent that the additional tax revenues generated from the cuts can exceed the cost of the cuts.  President Kennedy did this, as well as Presidents Reagan and Trump.  Why doesn’t the Democrat Party get it but instead sticks with Keynesian economics which allegedly doubled the duration of the Great Depression in the 30s and early 40s?  Understanding this phenomenon is so simple that I can only conclude that the Democrat Party doesn’t want to get it, but why not?

One of the constituencies that the Democrat Party claim is the poor.  The Democrat Party’s policies, however, keep the poor being poor.  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 might 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, etc.

The most recent evidence that this is so is the relentless attacks against the huge Trump and Republican tax cuts, using the phony pretext that the cuts mostly benefited the wealthy.  Since the wealthiest 10% of the population pay about 70% of Federal income taxes, they receive back the most in dollars, though just a tiny amount percentage-wise.  In addition, lowering the corporate tax rate from the very highest in the world, 35%, to a much lower more competative rate, 21%, benefits not only the corporation but all of the people that a corporation can employ, as well.

It’s way past the time that the Democrat Party changes its posture on stimulating the economy and creating jobs based on reality the actual results that have been achieved every time cutting taxes and regulations have been tried.

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JOBS FOR AMERICA (audio interview)

I decided to interview Steve De Maura (25-minute audio interview…click on the red words at the bottom of this introduction) because the U.S. economic problems mostly stem from the high unemployment rate which mean less taxes for governments at all levels and high annual deficits for the Federal government (most States may not legally have budget deficits).  In addition, US energy policy and using Keynesian economics (e.g., the “Stimulous” package) have made job creation and U.S. economic problems much worse. The interview focuses on the high unemployment rate: why it is so high and what should be done to bring it back down to very low levels.

Mr. De Maura began the non-profit organization “Americans for Job Security” or “AJS” (website www.savejobs.org) in 1997 to promote pro-market, pro-jobs public policy.  He was born in New Hampshire and raised in a small town in that State.  He received his higher education at American University in Washington, DC, after which he worked as a consultant for years before becoming director of “Americans for Job Security”.   AJS has a few thousand members who favor predictable regulations and lower taxes so as to foster job growth.  It funds its activities from member dues.

In the interview, Mr. De Maura discusses many aspects of the high unemployment rate in the U.S….

  1. The real unemployment rate (the U-6 Federal government report plus…)
  2. Why the “Stimulus” created only a small number of jobs
  3. Keynesian vs. Milton Friedman’s “Supply-Side” economics
  4. Unemployment in the Great Depression,
  5. Japanese attempts to stimulate their economy,
  6. Political interference with job and economic growth,
  7. The huge U.S. natural gas reserves, U.S. has more oil than the Middle East, and much more.

To listen to Steve De Maura’s interview, please click the below Red Link

Steve. de Maura-Job for Americans – Audio

Interview by Mike Russo 

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