Tag Archives: Milton Friedman

THE FAR-LEFT (SOCIALIST) WING OF THE DEMOCRAT PARTY DOES NOT UNDERSTAND THE AMERICAN ECONOMY

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My book, “Proud to be American,” is on sale at Amazon and also can be ordered at any bookstore for $17.95. It’s a 330-page paperback book with 70 articles in nine categories, and has a provocative introduction and conclusion. “Proud to be American” focuses on the abuses of the Main Stream Media and the far-left of the Democrat Party.  It analyzes domestic, national and international issues, something that the Media does not and cannot do and it does this using easy-to-understand language. #  #  #  #

The National Democrat Party not understanding how the U.S. economy works is not new. It’s been that way for some time but is far worse today with the radical far left taking over the Party with its Socialist policies (DSA, Democratic Socialists of America). The Democrat and Republican parties have 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 exceeds the cost of those rate-cuts. This is exactly what happened with Trump’s Tax Cuts and Jobs Act of 2017 to the extent that even after the Covid pandemic locked down the economy, once it opened back up (when Joe Biden was President), jobs snapped back (and these tax-rate cuts became permanent in the recent “One Big Beautiful Bill Act of 2025,” Public Law 119-21).

President Kennedy cut tax rates, as well as President Reagan.  Why doesn’t the Democrat Party understand this, but instead sticks with Keynesian economics which doubled the duration of the Great Depression in the 1930s?  Also, many Democrat Senators and Congressmen are embracing Socialism, an economic theory that has destroyed every economy that has fully embraced it. 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 that the far left of 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.

The evidence that this is so is the relentless attacks against the huge Trump and Republican tax-rate cuts during Trump’s first term, 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%, benefited not only the stockholders of corporations but all of the people that corporations employed and everyone that purchased the products it sold.

It’s far past the time that the Democrat Party changes its posture on stimulating the economy and creating jobs based on the evidence.  Actual great results have been achieved every time by reducing tax-rates and regulations and they usually pay for themselves by generating greater tax revenues.  However, the far left of the Party would never allow this unless the Party loses elections because of its economic policies…and this is probably what will happen, but hopefully the Party will eventually return to its former renown.

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IS INCOME INEQUALITY ETHICAL?

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My book, “Proud to be American,” is on sale at Amazon for $16.95 and can also be ordered from most book stores in the United States. It’s a 300-page paperback book containing 68 articles organized into nine categories and with 70 pictures.  My book analyzes complex national, international, and domestic issues and also critiques main stream media and the far-left of the Democrat Party.

A hot political issue is income inequality.  The heart of the debate is that it doesn’t seem fair for some people to make millions while others are living close to or in poverty.  The government already redistributes wealth through taxes and a variety of welfare programs including food stamps, Medicare, Medicaid, Social Security, etc., but advocates want to see a lot more.  Is this fair?  Is it feasible? Are there unintended consequences for even more income redistribution?  Let’s check it out by first reviewing the scope of the problem:  According to the latest data, the wealthiest 1% of taxpayers pay about 40% of all individual Federal income taxes and the wealthiest 10% pay about 70%.  However, the bottom 50% of taxpayers only pay about 3% of all Federal income taxes.

The United States’ economy is fueled by free enterprise, also known as Capitalism. Being able to make a better life for yourself and your family motivates people to devote the time, energy and work necessary to become financially successful.  This system, however, does result in some being very rich and some being poor.  Free enterprise, as practiced in the United States, contains economic safety nets to help ensure that no one is destitute.  Even so, some will still be bad off.  Here’s where charities play a large roll, as well as simple government policies, such as those that require that hospitals treat everyone, even when they can’t pay.

For average-income Americans, the Social Security Administration has reported that in 2020, the medium household income was $34,612.  This poor record was the fault of the Federal government in over-regulating businesses, until President Trump’s first term tax cuts reduced the absurdly high (35%) corporate income tax rate that forced U.S. companies to relocate overseas where rates were much lower.  All of these high-tax policies are still advocated  by the Democrat Party, who, in the same breath, say they’re for the “little guy” and for the poor.

Free enterprise is not perfect but has moved billions of people out of poverty in India, China and many other countries. Winston Churchill said that, “the inherent vice of capitalism is the unequal sharing of blessings; the inherent vice of socialism is the equal sharing of miseries.”  Venezuela is the best recent example of how a wealthy capitalist country becomes impoverished when it converts to socialism.  Income inequality naturally occurs under free enterprise but can be somewhat mitigated through the tax system.  I believe that it should therefore be tolerated but great effort made by government and businesses to naturally raise lower incomes to higher incomes. 

Finally, I never got a job from someone poor.  However, when I became relatively well-off, I was able to give temporary, part-time employment to others needing jobs.  Most wealthy people want to help others in this way.  And billionaires eventually give their money away to charities, their families, etc.  However, if the government took away most of the wealthy’s money, it would surely waste it.

 

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