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.