The further to the left or the right you move, the more your lens on life distorts.

Thursday, September 01, 2016

An Economic Plan

Florida is a battleground state, so TV ads from Hillary Clinton are ubiquitous. In one of the most common ads (that doesn't attack Donald Trump), Hillary touts an "economic plan" that is nothing more than Democrat orthodoxy.

"The rich don't pay their 'fair share'," she says. Therefore, Clinton will tax the rich at even higher rates, as well as tax "the corporations" at the same high rate that forces many off-shore. The tax dollars raised, she claims, will be used to "create millions of high paying jobs."

Steven Moore comments:
This economic mumbo jumbo defies basic common sense and helps explain why we still have more than 40 million Americans on food stamps — evidently, the more that get free food, the more prosperous we become. This is the crux of the continuing curse of Keynesian economics, which says that the more the government spends, the more the economy grows. A dollar of government spending leads to as much as two dollars of additional economic output, according to Professor [Nancy] Pelosi.

Hillary Clinton is apparently one of Mrs. Pelosi’s A students. The entire Clinton recovery agenda is to spend $1 trillion more on government public works programs, free day care and college education, and expanded entitlements. She would raise investment and personal income tax rates (paid by many small businesses) to finance all of this.

Hillary has been parading around a study by economist Mark Zandi of Moodys, which claims that this fairy dust will mean happy days are here again. He claims millions of new jobs and billions in added output. But Mr. Zandi has been one of the wrongest economists in America for the past decade. It was Mr. Zandi who claimed massive job gains and GDP growth from the Obama stimulus plan with food stamps and other giveaways.

Oops. Instead we got what The Wall Street Journal recently disparaged as “the weakest recovery since the 1940s” with stagnant wages.
It is likely that Hillary Clinton will be elected president. That means we'll continue the economic policies of Barack Obama. The problem is an Obama 3.0 economy will be no different or better that 1.0 or 2.0. Higher taxes to fund an expanding Big Intrusive Government, and as a consequence, more wage stagnation, more dependency, more poor economic performance, more government debt, and fewer jobs. That's one hell of an "economic plan."