An Elitist Political Class Makes Better Spending Decisions?

___The guiding premise of the Progressives is that an elitist political class can make better spending decisions than individual Americans. History demonstrates that the premise is false. The economy did quite well under Kennedy, Reagan and even George W. Bush after taxes were reduced. The “roaring 20s” were still the most prosperous for government with budget surpluses for each of Coolidge's six years. Critics would say that the “excessive exuberance” of the 1920s led to the 1929 stock market crash, but that was a small part. The isolationist tariffs and high minimum wages caused the 25% unemployment. We also had “excessive exuberance” before the “junk bond crash” in 1987, “dot.com crash” in 2000 and the “real estate/credit crash” in 2007. These followed periods of good growth.

___Corporations and the very wealthy are the villains of the Progressive century-old conspiracy. History again shows the error. The oil giant that became Standard Oil, Inc also saved the whales! Most lighting used whale oil as a fuel. Rockefeller made kerosene so cheap that whale oil sales became insignificant. U.S. Steel made it possible to build buildings with more than 3 stories. General Electric and Westinghouse lit our world and powered our appliances. Ford made the car affordable. J.P. Morgan had to bail out the United States treasury when Gould cornered the gold market.

___It is more often the government's fiscal policy that drives jobs to another city, state or country. Examples are the shortstop for the New York Yankees being a resident of Florida, and the co-founder of Facebook becoming a citizen of Singapore. States have adapted by putting a tax on income where it is earned. Athletes should boycott [Super Bowl] games in high-tax cities and states. Internet sales are now taxed. Multinational corporations pay foreign taxes on profits and U.S. taxes on the same profits if they bring them back to the United States (so the capital is left overseas stimulating our competitors). You have an absurd case of a $50 Billion U.S. corporation being “bought” by a $10 Billion Irish corporation, and the headquarters address being Ireland (for tax purposes).

___The United States became the most powerful economy with the written Constitution giving balance of power, property rights and the rule of law, and The Wealth of Nations as economic theory. Progressives say the Constitution was written by “a bunch of dead white guys,” and Karl Marx and John Maynard Keynes provide the “updated” economic theory. The 2009 “stimulus” took over $700 Billion from taxpayers, and elitist politicians spent it on solar and wind projects. Some was spent on “shovel-ready” projects which had been planned for future years and were completed earlier. Most was spent on loyal Progressive supporters.

___Most people should not go to college. The lotteries were sold as “free college education for the masses.” Basic economics says that a dramatic increase in demand (students) and a relatively static supply (colleges) will mean an increase in costs. Thatcher said pretty soon you run out of other peoples' money, so a B average was required. Thugs threatened teachers. An additional requirement of 18 on the ACT was hastily added. When costs rose rapidly, the taxpayers guaranteed student loans (currently over $1.3 Trillion with a rising default rate). The Progressives want to forgive the debt and make college tuition free. Graduates will make $15/hr even if they cannot find a job in their field! Unemployment was extended from 26 to 99 weeks years ago. Who needs to work?!

___We have a problem with entitlement programs. Dr Williams calls Social Security a Ponzi scheme with a gun. Actually, if you refuse to pay FICA payroll tax, you would be sent to prison – maybe GiTMo! The population demographics of the United States, Japan and Europe does not support a welfare state. You need a pyramid with few elderly and disabled (takers) at the top and many (workers) at the base.