Republicans Supply An Economic Trap For the Democrats

Wall Street Journal ^ | Tuesday, October 28, 2003 | ALAN MURRAY

[presidio9]

The election of 2004 is shaping up to be the ultimate triumph of supply-side economics. That is the theory that proffers tax cuts as the solution for almost anything that ails the U.S. economy -- as well as anything that ails the Republican Party.

[gaspar]

Is Alan Murray still alive? You couldn't prove it by his presence on television -- the Democrat tool is truly snore-inducing.

[staytrue]

He argued Democrats were winning elections by playing Santa with government-spending programs, while Republicans were losing them by being responsible and focusing on deficits. The solution, he said, was for the Republican Party to abandon the green eye shades and become the Santa of tax cuts.

I agree with this. But I will add that, ever growing govt. spending will eventually destroy the private sector where wealth is created and upon which the govt. depends on for taxes. While tax cuts strenghtens the private sector and in the long run is sustainable, while the democrat strategy of govt. spending is not.

[ClearCase_guy]

The only other hope for Democrats is a grim one: a continuing deterioration in Iraq, causing economics to take a back seat to foreign policy.

No surprise to anyone here, but this points out the Great Hope of the Democrats.

They were hoping that the economy would go down the tubes.
They were hoping that millions more people would lose their jobs.
They were hoping for an greater increase in personal bankruptcies.
They were hoping for widespread pain and suffering across the land.

Alas, it was not to be. So now they must turn their attention to Iraq, and hope that our soldiers are slaughtered and our foreign policy is thwarted, paving the way for more terrorist attacks on US soil. The Dems have their fingers crossed.

[Mr. Jeeves]

"Who do ya trust? Me? I'm giving away 20 mill! And where is the Batman?" -- The Joker (Jack Nicholson), Batman

This may be the way to play Presidential politics in the short run, but Republicans are going to regret it long term.

[presidio9]

Yep, the "Politics & Policy" page of the Journal is simply rife with right wing propaganda.

</sarcasm>

[Henchman]

i agree:"the National Technology and Information Administration and the Office of Thrift Supervision YUP, let's get rid of them. Perhaps our beloved GOP will get the Treasury to stop printing (supply side) money - seems too much is floating around to thwart deflation. Alternatively, the Government can supply us all with gold, up 20% so far. Perhaps supplying us with gold instead of "paper" dollars will give us the "honest dollar" promised by Reagan! ...when is the GOP going to deliver on that promise? Of course the Degenerats never deliver anything other than politically motivated spending and higher taxes.

[AZLiberty]

The Democrats may also want to prepare for the October surprise where U.S. forces trap Osama and Saddam in their gay love nest with their adopted shaved ape baby (see this week's Weekly World News if you don't believe me).

[Blood of Tyrants]

Mr. Lieberman's response is to play Robin Hood instead of Santa Claus. He proposes not only repealing tax-rate cuts for the well-to-do, but adding five percentage points -- taking the top marginal tax rate to 44.6% -- to pay for even deeper tax cuts for the middle class.

Another person who can't remember the REAL Robin Hood story was one of a hero who stole money from an opressive, over taxing government, NOT simply rich people.

[Texas Federalist]

Excellent quote.

[conservatism_IS_compassion]

This may be the way to play Presidential politics in the short run, but Republicans are going to regret it long term.

The Democrats' conceit is that government can "solve problems" without limit. That is inherently dangerous, and led to the stagflationary '70s.

Once the price of legitimacy is raised above the market-clearing price, you get an off-the-books economy or none at all. At that point there is only one responsible policy, and that is cutting tax rates. A doubling of tax revenues followed the Kemp-Roth tax rate cut of the 1980s, and that is as much proof as life is likely to offer that tax rates had previously been above the point of diminishing negative returns.

So long as the evidence suggests that our tax rates are little if any below the point of negative returns, opposition to tax rate increases is good policy in both the short and the long run. Conservatives are what they are because of a (stated or unstated) concern for "our posterity," as the Constitution puts it. They are therefore never likely to become truly irresponsible in the way that Democrats naturally tend to do.

The idea that all problems have a solution, and that solution is government spending and regulation, is inherently irresponsible because it tends to seperate responsibility from authority.

[hobbes1]

But as long as economic policy remains up front, Mr. Bush will be driving.

The Headline should read

Bush to Democrats..."Bend over....I'll Drive."

[TUX]

W. version of Ali's rope a dope.