WILSON’S LOCAL PRINT AND DIGITAL COMMUNITY INSTITUTION SINCE 1896

The secret to a great economy

Posted 1/3/20

People have been bragging about how great the economy is under the current administration. Clearly, the stock market is booming and unemployment rates are the lowest in decades. “President Trump is …

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The secret to a great economy

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Posted

People have been bragging about how great the economy is under the current administration. Clearly, the stock market is booming and unemployment rates are the lowest in decades. “President Trump is a towering economic genius. We can’t afford not to re-elect him!”

Since supply-side economics became the mantra of the GOP in the 1980s, the party’s goal has been to lower income tax rates on those with the most money to invest — and that approach was extended to businesses. We’ve had a sizeable deficit for more than 60 years. As income tax rates were lowered, mainly on those who made the most income, federal deficit amounts grew. No politician could get elected by telling us that we needed to pay back what we owed, so nobody has.

Imagine your household budget is $100,000 a year — before taxes. Then you use a credit card to pay roughly a third of your bills. You have a sweetheart deal so you can keep borrowing money as long as you pay the interest on the balance. Thus, you have more money to buy more things. The only catch is that after you die, your heirs will have to pay not only the interest on your credit card, but also the balance you’ve borrowed throughout your life.

The wealthy and the big business are doing great with lower tax rates. They have more money to spend on hiring people. Yes, the economy is currently boiling as an annual stimulation of cash — the deficit money year after year — is pumped into our economy.

And while people are deliberately being distracted to argue about a host of often unrelated political issues, the national debt is growing like a lethal ticking time bomb. But don’t worry. The great news is that no power on earth can force us to pay back our debt because we’ll be dead. And won’t those who follow us feel tremendous gratitude for the economic situation we have left them?

And what does this behavior demonstrate about how much we actually care for those we claim to love?

Ron Taylor

Wilson

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