In response to the recent letter from Ken Welton on tax reform:
Mr. Welton is following the media’s lead in the picking and choosing of facts. He first does not acknowledge what the Reagan economic policies did. From the congressional Joint Economic Committee in April 2000: “His policies resulted in the largest peacetime economic boom in American history and nearly 35 million more jobs.”
The theme of Mr. Welton’s letter seems to be the national debt. But how can anyone write such a letter and omit the doubling of our debt under Barack Obama? It was $9 trillion when George W. Bush left office and $19 trillion when Mr. Obama left. Mr. Obama added more to the debt than all other presidents combined, yet Mr. Welton didn’t mention that at all.
Lastly, Mr. Welton belongs to the “we have a pie” club, a distorted view of the U.S. economy. This idea, held by most on the left, is that the economy is a static pie: it is only so big, it only has so much to be distributed. But that is not so. Our capitalistic system is dynamic — it changes constantly, and it can be induced to grow at much greater rates than it is growing now.
Mr. Obama said 2 percent GDP growth was the new normal because he also shared the pie idea. He tried to induce the economy with government spending, which never works. Can you say Solyndra? We are presently on a track for 3 percent growth and that is after only one year of economic policies based on the private sector. All money is generated in that sector.
Here is the seemingly contradictory idea that Democrats will never acknowledge: Tax cuts increase government revenues.