This is one for the cost effective seats. THERE HAS NEVER BEEN AN ECONOMY IN THE HISTORY OF THE WORLD WHICH HAS RECOVERED AS A RESULT OF GREATER REGULATION AND HIGHER TAXES. The Financial Reform Bill of 2010 is not a reasonable or thoughtful response to the Financial Crisis of 2008 - it is barely clearly nothing higher than government over-reach, intrusion into the private sector, and policies which have not ever worked prior to and will not work now. Our free, democratic society HAD rules in location to govern excessive behavior within the financial markets, but we did not enforce them. Obama's pick for the No.
2 post at the Federal Reserve, Janet Yellen, testified this was the case oversight, not regulation, was the key element of failure within the 2008 crash, AP, Yellen: Lax regulation contributed to 2008 crisis. Think about just for 2nd little bit of history. We had been taught in college that FDR President Roosevelt was a transformative figure which his progressive platform saved us from the ravages regarding the Best Depression. By the time FDR had taken over as President in early 1933, the economy had recovered from the Stock market crash of 1929, but then double-dipped repeatedly into a fearsome recession. FDR's progressive response was a massive government intrusion into the private sector.
Institution of Wage and Cost controls 2. Encouraged people to join unions 3. Slice farm production to raise prices against deflation 4. Corporate Security program along with dozens of other government bureaucracies was created The conclusions were dismal: 1. Tax revenue to the government collapsed by20% 2.
The Federal debt exploded to 40% of GDP, 5 times higher than at any previous time in history. Employment improved during the decade but was NOT restored to 1920 grades until the war drafted 40 million into overseas service. Economy essentially did not recover for the entire decade. Republicans running on first conservative platform won the 1938 mid-term elections and repealed a good portion regarding the New Deal with the exception of sure programs within Corporate Security look Taft-HartleyAct. In retrospect, the New Deal lengthened and worsened the Best Depression.
America did not emerge from this economic collapse until the near full employment of World War II. The past shows as fact that massive government intrusion into the private economy does not halt a depression, it stifles growth. It did not work, so howcome should we do something that the past has taught us does not work? Listed below are examples of what does work. Let us learn from history. President Peter Kennedy did the following: 1.
JFK instituted throughout the board tax cuts and tax revenue to the government grew by 6. The deficit fell from $7. 5% from 1961 through 1968, compared to 2. 1% growth below the higher nominal tax brackets regarding the 1950's. 91% highest nominal tax bracket from 1946-1961, Kennedy lowered them to 71%.
Local Center for Policy Analysis Hmmm. Do we look a trend? Facts are stubborn things. There is a spot where taxing gives diminished returns, and that you have knowledge of over-taxed the taxpayer. This conclusions in sheltering income, decreased productivity, and fraud thereby REDUCING tax receipts to the government. Let us see, do we have another example? Of course the Reagan era.
What did our most successful modern President achieve? 1. Reagan came into office with 13% unemployment, 16% interest rates, and 9% inflation. The misery index as envisioned by Arthur Okun was 21. 98% He also termed it stagflation, the combination of stagnant growth and inflation. Reagan lowered the highest tax rate from 71% to 28%.
Economic growth from 1981-89 below Reagan went from contracting below Carter in 1978, to 3. 6 percent average annual growth for Reagan's 8 years in office. Most importantly, tax receipts to the government during the Reagan years went from approximately $500 billion in 1980 to $1. I can hear liberals right now Houston, we hold a problem. But now, let us turn to the dreaded George Bush.
Just the utterance of his name sends Stuart Smalley, er-Al Franken into a frothing-at-the-mouth seizure. But these are the facts, and they can be not in dispute. Economic policy below George Bush included 3 massive tax cuts: 1. According to the IMF not a conservative or liberal group, but the Worldwide Monetary Fund total US GDP grew 19% from 2001-2008 INCLUDING THE ECONOMIC MELTDOWN OF 2008! This is subsequent to the 2001 and 2003 Bush tax cuts. Tax revenue increased to the government from 2001 to 2008: going from $1.
6 trillion, an increase of 37% in revenue collected by the government over that period of time. So in review, what can we speak has not worked, and what can we speak has worked? Here is the short, simple answer: 1. Massive government intrusion into the private economy destroys markets, capital allocation, economic growth, and dampens revenue to the government. Borrowing and spending destroys the ethic of a free society. Lowering excessive tax rates, deregulation, and freer markets improves the economy, creates jobs, and increases tax revenue to the government.
Which one have we been doing since the new Administration has taken office? You do the math. The clock is ticking on our children's future, and the adults seem to have left the room. If cutting taxes improves the jobs numbers as well as the income stream to the government, howcome should we do anything else? This reform bill is about creating government bigger and more powerful, while creating the average American poorer and fewer free. Our politicians should reject this bill, and if they shall not, let us elect leaders who shall vow to repeal it.
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