Wintery Knight

…integrating Christian faith and knowledge in the public square

Hillary Clinton’s views on the economy, taxes and jobs

The video above explains Hillary Clinton’s views on how jobs get created. She doesn’t think that private companies create jobs.

Here’s the story from economist Stephen Moore writing at Investors Business Daily.

Excerpt:

Hillary Clinton is getting deservedly attacked for her imbecilic statement at a Democratic political gathering in Massachusetts on Friday about business and jobs.

“Don’t let anybody tell you that, ah, you know, it’s corporations and businesses that create jobs,” she preached, to loud applause. “You know that old theory, trickle-down economics. That has been tried, that has failed. It has failed rather spectacularly.”

It may not be too surprising that Hillary can’t connect the dots that it takes an employer to create an employee to create wages and salaries.

That’s how some 150 million Americans get paid every week. Ms. Clinton has made her millions in the cattle futures market, as a government employee and giving speeches for fees of $250,000 a pop. Nice work if you can get it. The rest of us mere mortals need a paycheck.

Hillary’s witless statement might be written off as campaign hyperbole, and some might think the Democratic front-runner for president simply got carried away speaking to her “progressive” base and didn’t really mean it. Sometimes Republicans get into the act, as when Mitt Romney’s GOP rivals attacked him in 2012 for being rich and a successful investor.

But the scary thing is she really DID mean it. Her sophomoric comment, alas, reflects a long-simmering ideologically driven war against business that has become a central platform of the modern-day Democratic party.

Her remarks were simply an extension of President Obama’s “you didn’t build that” statement denigrating businessmen and women who have created companies — large and small.

In the left mindset, economic output and jobs are achieved collectively and thanks to the beneficence of government, not because of the ambition, drive, vision, risk-taking and guts that it takes to start a new enterprise out of nothing.

So who creates jobs then? Well, if it’s not private sector businesses then the only thing left to create jobs is the government. She thinks government creates jobs. And the more government raises taxes, the more money government has to give people jobs.

But is that really how it has worked in the past?

Let’s see.

Consider this article by the Cato Institute, a libertarian think tank, which discusses how the Reagan tax cuts affected the unemployment rate.

Excerpt:

In 1980, President Carter and his supporters in the Congress and news media asked, “how can we afford” presidential candidate Ronald Reagan’s proposed tax cuts?

Mr. Reagan’s critics claimed the tax cuts would lead to more inflation and higher interest rates, while Mr. Reagan said tax cuts would lead to more economic growth and higher living standards. What happened? Inflation fell from 12.5 percent in 1980 to 3.9 percent in 1984, interest rates fell, and economic growth went from minus 0.2 percent in 1980 to plus 7.3 percent in 1984, and Mr. Reagan was re-elected in a landslide.

[...]Despite the fact that federal revenues have varied little (as a percentage of GDP) over the last 40 years, there has been an enormous variation in top tax rates. When Ronald Reagan took office, the top individual tax rate was 70 percent and by 1986 it was down to only 28 percent. All Americans received at least a 30 percent tax rate cut; yet federal tax revenues as a percent of GDP were almost unchanged during the Reagan presidency (from 18.9 percent in 1980 to 18.1 percent in 1988).

What did change, however, was the rate of economic growth, which was more than 50 percent higher for the seven years after the Reagan tax cuts compared with the previous seven years. This increase in economic growth, plus some reductions in tax credits and deductions, almost entirely offset the effect of the rate reductions. Rapid economic growth, unlike government spending programs, proved to be the most effective way to reduce unemployment and poverty, and create opportunity for the disadvantaged.

The Daily Signal describes the effects of the Bush tax cuts.

Excerpt:

President Bush signed the first wave of tax cuts in 2001, cutting rates and providing tax relief for families by, for example, doubling of the child tax credit to $1,000.

At Congress’ insistence, the tax relief was initially phased in over many years, so the economy continued to lose jobs. In 2003, realizing its error, Congress made the earlier tax relief effective immediately. Congress also lowered tax rates on capital gains and dividends to encourage business investment, which had been lagging.

It was the then that the economy turned around. Within months of enactment, job growth shot up, eventually creating 8.1 million jobs through 2007. Tax revenues also increased after the Bush tax cuts, due to economic growth.

In 2003, capital gains tax rates were reduced. Rather than expand by 36% as the Congressional Budget Office projected before the tax cut, capital gains revenues more than doubled to $103 billion.

The CBO incorrectly calculated that the post-March 2003 tax cuts would lower 2006 revenues by $75 billion. Revenues for 2006 came in $47 billion above the pre-tax cut baseline.

Here’s what else happened after the 2003 tax cuts lowered the rates on income, capital gains and dividend taxes:

  • GDP grew at an annual rate of just 1.7% in the six quarters before the 2003 tax cuts. In the six quarters following the tax cuts, the growth rate was 4.1%.
  • The S&P 500 dropped 18% in the six quarters before the 2003 tax cuts but increased by 32% over the next six quarters.
  • The economy lost 267,000 jobs in the six quarters before the 2003 tax cuts. In the next six quarters, it added 307,000 jobs, followed by 5 million jobs in the next seven quarters.

The timing of the lower tax rates coincides almost exactly with the stark acceleration in the economy. Nor was this experience unique. The famous Clinton economic boom began when Congress passed legislation cutting spending and cutting the capital gains tax rate.

So in the past, the trickle-down supply-side tax cuts that Hillary Clinton derided in her speech created lots of jobs. We have to do what is known to work.

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Religion and politics: Wayne Grudem’s 2012 Pulpit Freedom Sunday sermon

My church probably isn’t doing anything for Pulpit Freedom Sunday, because they are a gospel every week church. It’s really not clear to me whether my minister is even pro-life or pro-marriage, because he never talks about anything practical. However, I was able to dig up this 2012 sermon from Dr. Wayne Grudem, an amazing pastor who does have a position on many issues relevant to the Christian worldview.

The topic is “Moral and spiritual issues in the 2012 election”.

Here it is: (68 minutes, Dr. Grudem starts 4 minues in)

Details:

This message was delivered by Dr. Wayne Grudem at Calvary Chapel Chino Hills on Pulpit Freedom Sunday. Dr. Grudem addresses directly and poignantly the spiritual and moral issues we face in the upcoming 2012 Election. He urges believers to vote according to a Biblical world view. Dr. Grudem has an excellent understanding of not only the Bible and Theology, but also how the United States political system really works. He is author of the bestselling, “Systematic Theology” (used in numerous seminaries), “Politics According to the Bible,” and he is also the General Editor of the bestselling “ESV Study Bible.” Please dedicate an hour and listen to him; more importantly, please heed his wisdom and vote responsibly.

The sermon notes are free to download. (PDF) I recommend printing them to follow along with the sermon.

Here’s one of slides, just to show you what Wayne Grudem can do:

Pulpit Freedom Sunday: can your pastor do this?

Pulpit Freedom Sunday: can your pastor do this?

Can your pastor do that? Mine can’t.

I think a lot of people like to think of Christianity as something that is about your personal well-being, or maybe your personal morality. If you attend a pretty typical gospel-every-week church, then you may never learn how the Christian worldview applies to the political issues of the day. It’s “too divisive”.

If you’re looking for the best book on the Bible and policy, it’s Wayne Grudem’s “Politics According to the Bible”. I really really endorse that book.

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Clinton book publisher shipped 1 million copies, but only 160,000 copies sold

Hillary Clinton addresses Planned Parenthood

Hillary Clinton addresses Planned Parenthood

From the leftist Huffington Post.

Excerpt:

If books can make presidencies — and Barack Obama proved they can– then hold the talk about the inevitability of Hillary Clinton.

The Huffington Post has learned that new survey figures show sales of her foreign policy memoir, Hard Choices, are falling fast.

According to authoritative numbers from Bookscan, which monitors sales at 80 percent of bookstores nationwide, retail sales of Hard Choices plummeted another 50 percent in the third week — down to 26,190 from 48,200 the week before and 85,900 the first week of publication.

Books whose sales drop off by half in successive weeks generally don’t become blockbusters, which could be a problem — a big one — for Clinton’s publisher, Simon & Schuster.

S&S reportedly shipped 1 million copies of the book to stores and is said to have paid Clinton an advance approaching $14 million. At the current rate, it would take many months to sell the million copies — an unlikely prospect according to industry sources.

“It looks like they are going to be pulping a lot of paper,” said a top industry source, who declined to be quoted by name because of the sensitivity of the matter in the industry. A Simon & Schuster spokesman declined immediate comment.

Total sales are only 160,000, according to the leftist Washington Post.

I think this probably has to do with her much publicized comments about being “poor”, despite having millions of dollars. The flagging book sales is good news for us who want Hillary to be the nominee for the Democrats in 2016.

 

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Libertarian blogger endorses Wisconsin Governor Scott Walker in 2016

Wisconsin Governor Scott Walker

Wisconsin Governor Scott Walker

Here’s the post from Liberty Without Apologies blog. (H/T Well Spent Journey)

Excerpt:

I believe Scott Walker is the best possible candidate for the Republican 2016 election. I have believed this since before I moved to Wisconsin, and living here has solidified that belief.

I understand that Rand Paul is by far the most popular candidate for libertarians. I lived in Kentucky during Rand Paul’s primary fight against McConnell toady Trey Greyson, although I stayed home, as he was dominating in the polls. I did vote for him for Senate. I’m proud of my former Senator (I have since moved to Wisconsin, which has a conservative Tea Partier and a Marxist lesbian in the Senate) and think he’s doing a fine job.

He lists five reasons why he likes Walker.

Here are the first three:

1. Competence matters as much as ideology. I remember when Democrats enthusiastically elected a charismatic, ideological liberal with almost no real experience running anything. He then proceeded to screw up one of the most important left-wing issues so badly that Democrats barely even want to say the word “healthcare” anymore, let alone make you extravagant promises about it. Obama’s self-defeating hubris is the only reason we have a chance in 2016. If Obamacare had been a smartly devised system of creeping bribes like Medicare was, the fight would be over. Ideologically, I like Rand Paul, but I have simply no reason whatsoever to believe he would be a competent executive. He’s a risky unknown, and the Presidency is too important. If he turns out to be incompetent, four years of an incompetent executive ensures the liberty movement will be finished for years as a voice in the Republican Party and in American politics as a whole. Scott Walker’s proven he can establish the kind of record that makes limited government more popular, not less. We’re not talking about Chris Christie’s progressive Republicanism. We’re talking about a guy whose signature accomplishments are cutting off public employee unions and balancing the budget.

2. Institutions matter. If there’s one thing that characterizes Scott Walker’s tenure as governor, it’s disarming, defanging, and throttling institutions that serve as the source and foundation of left-wing power. We don’t just need someone who likes capitalism and freedom in the White House. We need someone who understands how the institution of government has been turned into a tool for destroying the right and creating reliable, government-worshiping, Democrat voters. I know Scott Walker understands this, because he’s made it central to his agenda while governor. And I know he doesn’t just understand it, he knows how to do it.

3. The federal bureaucracy has metastasized. Scott Walker has an army of boring, pudgy, bespectacled guys quietly doing everything they can to undermine and confound the progressive agenda at state bureaucracies. He knows who to get the right people doing the grunt work of reforming government. The greatest enemies a Republican President will face are the permanent employees in executive branch agencies, not Congressional Democrats. The petty functionaries that weaponized the IRS are smart, they are vicious, and they will fight. I know Walker knows they need to be fought, and I know that he knows how to win, because he’s winning his fights here in Wisconsin. I’d have more faith in Rand Paul if he’d been the governor of Kentucky and successfully fought the public school establishment or something, but he hasn’t been, so I don’t have it. Making speeches on the Senate floor is important, but it’s not the same as going through the laborious grind of cleaning out a bureaucracy that’s metastasized and is feeding on the body politic. Paul is probably more ideologically libertarian than Walker, but Walker’s won as many battles against government as you could hope to get out of any governor.

I think that in 2016 we should be looking at candidates who will take the fight to the Democrats. We don’t need another Mitt Romney. I want to see a candidate who sticks his neck out for what he believes in and comes out on top. Real accomplishments, this time. Not rhetoric. Why do we always have to care what our opponents think of us? Why not just beat them up and then be magnanimous in victory? If he runs for President on the platform of zeroing out manufacturing income tax, he will win. Every union worker will vote for him.

During the Christmas vacation, I read governor Walker’s new book, which was a Christmas present from my friend ECM. If you want to learn more about governor Walker, I recommend picking that up. I actually got the audio version, and it’s read by governor Walker himself.

Frankly, there is only one person running in 2016 right now who destroys government, and it’s Walker. I want to see them out of a job, or with their salaries and benefits chopped. No mercy. Walker is the man who can do it, because he’s done it. Over and over and over again.

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Wisconsin governor Walker’s reforms hit the left in their wallets

Canadian Prime Minister Stephen Harper

Canadian Prime Minister Stephen Harper is mean

First, let’s talk about Stephen Harper. I sometimes blog about conservative Canadian prime minister Stephen Harper, who Dennis Prager calls “the leader of the free world”. He has a record of putting into place laws that cut off the ability of the left to get campaign funding without consent from the people supplying the money.

Here’s an article from Canada’s National Post.

Excerpt:

While the political showdown making news this month has pitted Prime Minister Stephen Harper against Senator Mike Duffy, a more important battle is shaping up for the 2015 election. It’s between the Conservative Party and organized labour — as evidenced by the resolutions the party will be debating at its policy convention in Calgary this week.

Proposals include allowing secret ballots during strikes, banning the use of dues for political purposes, requiring increased financial disclosure by unions, and passing right-to-work legislation. The resolutions are moved by electoral district associations in Alberta, Ontario and Quebec, and together represent what appears to be the largest block of resolutions on any one theme.

Why the focus on organized labour, and why now? In part, it’s ideological. While small-c conservatives respect freedom of association, they also respect the freedom not to associate. The labour movement’s rules — particularly the RAND formula, which obliges workers in unionized workplaces to join whether they want to or not — restricts workers’ freedom of choice. Unions also spend dues on causes that workers may not support, and demand workers follow their direction on strike action, even if workers may be opposed or not be able to afford the loss in pay.

[...]The Conservatives have pledged to balance the federal budget by the time they go to the polls. One of the elements of their plan is downsizing government, which pits them directly against the Public Service Alliance of Canada. For two years now, PSAC has been fighting against Conservative cuts to the bureaucracy and the party’s policy of reduction by attrition. PSAC’s rallies and campaigns, however, have done nothing to dent the Tories’ resolve (long overdue, considering that they substantially grew the size of the bureaucracy during the early years of their mandate). Curtailing PSAC’s power and voice would help the Tories achieve their downsizing goals for both the short and long term.

Back in 2006, Stephen Harper banned political contributions from corporations and unions. Nasty! And he’s not done yet, according to this article. It’s good to win, and win, and win again. I am tired of conservatives losing, even in other countries.

Governor Scott Walker

Now when I look around at the Republican Party, I rarely see the same will to do effective things that will cripple the left financially. It’s like Republicans don’t want to offend people, especially journalists. They want to be liked at cocktail parties.

But there is one Republican who is fine with being hated by his enemies, and he is getting a lot of attention from conservatives ahead of the 2016 election.

Wisconsin Governor Scott Walker

Wisconsin Governor Scott Walker is also mean

Here’s the story from the Associated Press.

Excerpt:

The 2011 state law that all but ended collective bargaining for most public workers has hit Wisconsin’s second largest union particularly hard.

The latest tax documents available show combined income of American Federation of State, County and Municipal Employees (AFSCME) dropped 45 percent in 2012 _ the first full year of the law, according to The Capital Times.

In 2011, the four councils that make up the state organization reported a combined income of $14.9 million. In 2012 that dropped to $8.3 million. Dues revenue dropped 40 percent to $7.1 million.

Walker and supporters of the law said it was a way to help local governments reduce the costs of employee benefits, but the legislation also included measures aimed at financially weakening unions by ending automatic dues deductions.

The union’s Council 40 executive director, Rick Badger, says that while the declines in revenue stemming from the law were expected, he has been encouraged by the number of workers who have continued to pay voluntary dues.

“In fact, what (the law’s) architects might find surprising is our resilience,” he wrote in an email. He said thousands of “front-line workers are remaining engaged in fighting for their rights despite heavy-handed political attempts to silence them.”

While public unions no longer enjoy the official bargaining power that they exercised in recent decades, he said many public workers continue to value their presence as advocates for their rights and welfare.

AFSCME is second only to the Wisconsin Education Association Council, or WEAC, in members in Wisconsin. It has long been a powerful player in state politics, funneling money directly to campaigns and running independent television ads in support of pro-labor candidates, as well as providing a legion of employees and member volunteers who made sure their union brethren voted on Election Day.

The law has also hit other big unions in the state. For instance, WEAC, the state’s largest teachers union, saw its revenue drop from $26 million in 2011 to $20 million in 2012.

This is definitely someone we conservatives need to look at in 2016. He has had to face the left in a blue-ish state, and he won.

During the Christmas vacation, I read governor Walker’s new book, which was a Christmas present from my friend ECM. If you want to learn more about governor Walker, I recommend picking that up. I actually got the audio version, and it’s read by governor Walker himself.

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