The debate on the economy has been framed as a choice between (a) tax increases or (b) starving children and the elderly. Unfortunately, we’re not hearing a word about a very credible choice (c): CUTTING SPENDING. What happens in our businesses and in our homes when we end up spending more than we have in the bank? We cut spending. We cut it to meet, or fall below, our maximum level of fiscal resources. WHAT is so irrational about demanding that our government leaders run our country under the same set of rules and procedures we run our homes and businesses with?
The New York Times has put together a piece reminiscing about “the good ol’ days” when the GOP voted for an increase in tax rates. That was 1990 — when the first President Bush went back on his “No New Taxes” pledge. Bush was promised spending cuts by Democrat congressional leaders in exchange for an increase in tax rates. Bush held up his end of the deal, but the Dems DID NOT. Just like the Dems played President Reagan in 1986. Both episodes — tax increases and no spending cuts — led to an economic downturn. WHY – WHY should we believe THIS TIME will be different?
The Times rolls out paleolithic RINO relics Jim Leach, Bill Frenzel and Pete Domenici to bash current Republicans for holding onto the “heresy” of tax cuts AND spending cuts. Reagan economic advisor Arthur Laffer — who came up with the concept of supply-side economics — gets targeted for inspiring these current Republicans to resist compromising with Dear Leader Barry. Supply-side economics, illustrated by Dr. Laffer’s eponymous Laffer Curve, shows that government revenue rises when tax rates are reduced. The curve also shows that, as tax rates increase, government revenue decreases — because people decide the tax burden is so high that it is just not worth it to work and earn money.
Democrats and their allies in the media are successfully riling up class envy among the folks who haven’t achieved the country club lifestyle against the folks who HAVE. Confiscating the wealth of EVERY millionaire won’t run the government for A MONTH. It might make some folks feel good. But it doesn’t do anything good for the country. Our side needs to step up and do a better job of preaching the gospel of free-market capitalism BEFORE it’s too late.