Richardcyoung.com

The Online Home of Author and Investor, Dick Young

Higher Taxes/Bigger Government or Lower Taxes/Smaller Government

By

By Michael D Brown @ Shutterstock.com

With the mid-term elections now behind us, it is time to recognize that there are two alternative approaches to fundamental economic policy, the Manhattan Contrarian writes: One that works. One that does not.

The big overriding fundamental issue, ex details and nuances, Francis Menton asks, is, which is better for economic success and prosperity?  Higher taxes and bigger government? Or lower taxes and smaller government?

(U)nder President Obama, we had Obamacare, some tax increases, and a regulatory explosion. From that policy mix, we got the slowest recovery since World War II, with total employment continuing to fall through 2010 and not recovering to its 2007 peak until 2015. Economic growth never reached 3% in any year of the Obama presidency.

Then President Trump adopted a lower taxes/less regulation approach (although not yet lower government spending). Suddenly economic growth hovers around 4%, the number of jobs is soaring, unemployment is at record lows, and wage growth is booming.

The more important question is, does anyone — even Democrats and progressives themselves — really believe that endlessly increasing government spending and handouts is a route to prosperity that will actually work? If so, based on what?

Isn’t it obvious that the real game (is) to use government revenues to buy enough votes to support more and more programs and giveaways to provide more and more government sinecures and power for the cadres of the left?

Read more from the Manhattan Contrarian here.

The following two tabs change content below.

Debbie Young

Debbie, editor-in-chief of Richardcyoung.com, has been associate editor of Dick Young’s investment strategy reports for over three decades. When not in Key West, Debbie spends her free time researching and writing in and about Paris and Burgundy, France, cooking on her AGA Cooker, driving her Porsche Boxter S through Vermont and Maine, and practicing yoga.