Surprise, Surprise. . .The universal laws of economics are still alive!
I know it’s been a while since I last wrote to you, but at some point, I felt as though I had made my case and the need for a daily chronicle of how we were doing everything wrong was draining on me and pointless for you. I write today to add fuel to a growing fire. As elections loom and the country seems to have had enough with the depressed economic situation we find ourselves in, it’s time to compare our plight with those who have taken a different course.
Last year I wrote an article about the enormous amount of government programs the new administration was passing through. They were spending like there was no tomorrow, telling us all the while that government was the only one who could get us out of this mess. The private sector had tried and failed. The article was “That’s Great, but what do you do for an encore.” Feel free to take time to read it now if you like. . .I’ll wait. . .OK, done? I liked to turn your attention to the massive THROW DOWN I issued to Germany and Hungary. While we are spending like crazy, those two countries decided to cut taxes. Not much mind you. But cut they did. I told Germany and Hungary IT. . .IS. . .ON!!! Let’s see if spending beats cutting. . .you know. . .for like. . .the first time. . .EVER! Come on America, we can do it this time!
A year has passed and let’s check the report card. Last year, when I wrote the first article unemployment here at home was sitting at 9.5%. Over the last year, the rate has fluctuated from 9.5 to 10.2%, the highest it has been in more than 17 years. Overall though, it has remained basically flat. Meanwhile, in good ole Deutschland, the unemployment rate was 7.6%. Already, they’re a step ahead of us. Initially, unemployment went up to 9.1% in January but then began to plummet. This week the headline I saw said, “German Jobless Rate Falls to 18-year Low.” Yes, in a little over a year, Germany’s unemployment rate has actually DROPPED! Not to mention the fact that is dropped more than two points from it’s high earlier this year. Even the vaunted New York Times (are they still publishing?) has to admit that, “In Germany, a Broad Recovery is Under Way.”
If you take the time to read these articles, you will hear how exports are way up and that’s the cause of all this economic growth. While that may be true, it is usually tax cuts which takes the burden off businesses and consumers which creates the environment for business to be able to respond to the rising demand, wherever it comes from. So, once again, tax cuts have saved the day. Only this time it was in Germany.
This leads us to consider a few questions: If I, a lowly TV technician with a simple Bachelor’s degree in Communications, can figure out that tax cuts work every time they’re tried, why can’t the brightest minds in the most powerful halls of Congress and the White House? If they are willing to ignore the overwhelming record of tax cuts and economic growth (documented very well in the pages of this blog, if I do say so myself), then what are they really trying to accomplish with all this federal spending? How many licks does it take to take to get to the center of a Tootsie Roll Pop? (The world may never know, but I digress. . .)
These are questions that many of us have already answered in our own minds and will tell the world on Tuesday what our decision is. Either we will go on with the leadership who has shown an unwillingness to consider broad tax cuts and even worse, actually raised taxes during this time of crisis; or we will choose new leaders and hope they keep their promise to restrict spending and reduce the tax burden on businesses and consumers. Here’s hoping!