Monday, December 15, 2003

Bush and the Economy

Not much has changed since my last piece – the liberals are still whining, and they are still wrong.The liberal complaint I will deal with today is: “Bush ruined the economy!” I still hear people say this; it a symptom of the disease I call “ignorance” which is amply represented in our school, and all the way up to the top of the Democratic party, where they should know better.The problem with this claim (and the problem with all liberal claims) is that it is unfounded in reality. Our economy is booming. Don’t laugh – if you actually check the facts, you will find that our economy’s GDP growth rate for the third quarter is 8.2%. That is tremendous – our economy has not expanded this rapidly for twenty years. Let us think now: Who was President 20 years ago? Reagan.Reaganomics, which was tremendously successful, rebuilt our economy after Jimmy “Pinky” Carter managed to put our country into a heck of tailspin. The tax cuts are an important key to the success of Reaganomics (and now “Bushanomics”). They give surplus money back to the guys who gave it to the government in the first instance. When people get some of their money back, they spend it, and that’s what makes the economy grow.There are a few complaints with tax cuts themselves. The most simplistic is: “We are squandering our surplus on tax cuts.” Please let me explain: Surplus money is extra money. It is money that the government took from you that, try as it might, it could not spend. You were over-billed by the government, so it seems reasonable that you should get the balance back.This leads us to the next liberal claim (you’ve heard this before). It goes something like this: “President Bush is the most fiscally irresponsible President ever – giving the most tax relief to the top 1% of all tax payers.” The reason that the top tax payers get the most relief is because THEY PAY THE TAXES. The top 1% of wage earners in America pay 37.42% of all federal income taxes. The top 50% of America’s wage earners account for more than 96% of federal income taxes. This leaves only 3.97% of income taxes for the bottom half of US taxpayers, even though their income share is much larger. We are cutting taxes for the people who pay taxes. If the Democrats were in charge, people who pay no taxes would actually get tax refunds – we would be paying for them to live here. Please remember redistribution of wealth is something we don’t have in a country where people are allowed to keep what they earn.There has been even more noise from the left: “No jobs! Two million jobs lost on Bush’s watch.” Look how phony this is: First, jobs are always a lagging indicator – they pick up after the rest of the economy. They are picking up now: 1 million new jobs over the last year; 57,000 new jobs last month. The government predicts the economy will soon be creating 200,000 jobs a month. Unemployment continues to fall – it is now down to 5.9%. Senate minority leader Daschle finds this disheartening.Now to the ‘Two million jobs’ statistic. This is a masterfully deceptive statement. The democrats didn’t mention that, while some jobs were lost, others were being created. Their stat counts the number of people fired, but doesn’t mention the number of people hired. The change in number of jobs since Bush took office, while negative, is much smaller than it appears to be. This means that Bush will be back in positive territory by Election 2004.Remember that our economy started its downward turn when Clinton was still in office, the recession was declared only seven weeks after Bush became President – not enough time for him to make a dent in the economy. Then of course there was 9/11, which would have dealt a bad blow to the economy even if Clinton was President. Now, however, Bush has solved the problem that was left behind by his predecessor and made far worse by Bin Laden. Giving money back to the people who earned it in the first place never fails.