History Lessons

As we approach the Labor Day weekend with our economy in the worst shape in 30 years, it seems that a history lesson on how to get out of it is in order.  As Richard Bernstein writes here, "In recent American history three presidents, Republicans Ronald Reagan and George W. Bush—and Democrat icon John Fitzgerald Kennedy—all lowered taxes in response to economic recessions. In all three cases, more money flowed into federal coffers than expected, and all three recessions ended."  This is proven economics, yet our President continues to talk about increasing our taxes at the end of 2010.  The question is why?  Bernstein believes it is about idealogy and power.  "Unlike JFK, today’s “progressive” Democrats favor higher rates of taxation because they believe government is the best entity for allocating resources. Underlying this assertion is the Democrats’ assumption that most Americans are incapable of running their own lives and should defer to the “superior” wisdom of the political ruling class....Taxation is also an extension of power. Democrats want more of it centralized in Washington, D.C. Republicans want it spread among individuals across the country. Democrats want to be the nation’s arbiters of “fairness” and “social justice.” Republicans believe fairness and social justice can be distorted beyond all recognition by elitist political ideology, so it is far better if such concepts are determined by millions of Americans free to act in their own self-interest." 

The Forgotten Man has seen this idealogy before, particularly in the state of Minnesota with the likes of Mark Dayton, Larry Pogemiller, Margaret Kelliher and others.  They just want higher taxes to pursue their goals, while most of us want to keep more of our own money to pursue our own goals.

 

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