Friday, 6 June 2014

"A Rising Tide Lifts All Boats" John Fitzgerald Kennedy


Last week, Hillary Clinton warned America to "deal with the cancer of inequality"  or face another "Gilded Age of the robber barons".  She then rattled off interminable statistics about the gap tween rich and poor.  OMG!  Another Barack Obama clone poised to take the presidency in 2016.  Higher taxes, bigger government, more freebies, more centralized control of our lives and less support for the private sector -  the real builders of wealth through job creation, capital investment and technological innovation.  Why don't these "progressives"  stop peddling their simplistic ideas and examine the research done by professionals more concerned with real solutions to income equality than spouting left-wing twaddle.  For example, study the work of Stephen Moore (chief economist of the Heritage Foundation)  and Richard Vedder (professor of economics at Ohio University).  These academics have spent 25 years examining why some American states grow much faster than others.  They weren't looking for results that simply supported predetermined conclusions.  They experimented with economic models, did impartial research and accepted the outcomes.  They found that high income-tax rates, budget deficits, union dominance, rejection of right to work laws, over-regulation by burgeoning bureaucracies and fuzzy "social justice"  programs chased away workers, businesses and capital.  Hillary Clinton would be wise to study their work and ponder their final conclusion:

"When politicians get fixated on closing income gaps rather than creating an overall climate conducive to prosperity, middle and lower income groups suffer most and income inequality rises.  The past 5 years are a case in point.  Though a raft of President Obama's policies were designed to more fairly distribute wealth;  inequality has unambiguously risen on his watch....... Our view is that John F. Kennedy had it right that a rising tide lifts all boats.  It would be better for low and middle income Americans if economic growth and not equality became the driving policy goal in the states and in Washington, D.C."

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