Wintery Knight

…integrating Christian faith and knowledge in the public square

Are libertarians right to say that lifting sanctions on evil regimes leads to liberalizing reforms?

Has liberalizing relations with China caused their government to introduce pro-liberty reforms? Libertarians like Rand Paul who cheered Obama’s appeasement of Cuba think that it has, but what are the facts?

This is a news article from the ultra-leftist UK Guardian.

Excerpt:

China’s drift towards a new authoritarianism under the unsmiling leadership of Xi Jinping has found new expression in a series of alarming year’s-end moves to curb personal freedoms and free speech. The country’s implacable president and Communist party chief is forcefully driving China towards economic and geopolitical superpower status. But the social cost is mounting steadily.

With the ruthless crackdown on dissent in Hong Kong still fresh in the memory, Xi’s latest anti-democratic coup came in the form of expanded action to block Gmail, Google’s email service, presumably because it gave users a degree of autonomy that Xi and his unelected party cadres find threatening. China already regularly blocks foreign websites such as Facebook and YouTube. Google pulled most of its business out of China in 2011 after a row over censorship.

Aspects of Xi’s policy of “autocracy with Chinese characteristics” are familiar to the country’s academic community, which is under renewed pressure to toe the party line. Instructions issued by the president after a higher education conference on Monday included the demand that universities do more to promote Marxist doctrine and Communist party ideological guidance, the Xinhua news agency reported.

“Enhancing [party] leadership and party-building in the higher learning institutions is a fundamental guarantee for running socialist universities with Chinese features well,” Xi was quoted as saying.

Political indoctrination is already a routine feature of university life for Chinese students, while their teachers are subject to monitoring to ensure political correctness. In an echo of the Stalinist era in the Soviet Union, this year reporters from state-controlled media were ordered to attend university lectures and detect and denounce teachers whose ideas might be considered “scornful of China” or pro-western.

Christians are hit especially hard:

China’s estimated 60-70 million Christians have not escaped persecution during the Christmas period, according to reports from Beijing suggesting their plight has worsened under the new leadership. Members of Shouwang, a Beijing Christian group, told Agence France-Presse that several pastors had been under house arrest since they tried to arrange Easter services in a public square in 2011.

Most Chinese Christians shun state-run churches and worship in “house churches” beyond government control. But official tolerance of such independent activity is waning, judging by a crackdown on 400 churches in eastern Zhejiang province, some of which were reportedly demolished.

Offering an insight into paranoid party thinking, an official recently told Beijing worshippers to “resolutely resist the use of Christianity by foreigners to infiltrate China”. Crosses have been torn down at many churches and at a nursing home. The authorities have made an issue out of Christmas lights, which are increasingly popular in Chinese cities, saying they may pose a safety hazard.

The ultra-leftist New York Times had more to say. (H/T Dennis Prager)

Excerpt:

They pounce on bloggers who dare mock their beloved Chairman Mao. They scour the nation’s classrooms and newspapers for strains of Western-inspired liberal heresies. And they have taken down professors, journalists and others deemed disloyal to Communist Party orthodoxy.

China’s Maoist ideologues are resurgent after languishing in the political desert, buoyed by President Xi Jinping’s traditionalist tilt and emboldened by internal party decrees that have declared open season on Chinese academics, artists and party cadres seen as insufficiently red.

Ideological vigilantes have played a pivotal role in the downfall of Wang Congsheng, a law professor in Beijing who was detained and then suspended from teaching after posting online criticisms of the party. Another target was Wang Yaofeng, a newspaper columnist who voiced support for the recent pro-democracy protests in Hong Kong and then found himself without a job.

“Since Xi came to power, the pressure and control over freethinkers has become really tight,” said Qiao Mu, a Beijing journalism professor who was demoted this fall, in part for publicly espousing multiparty elections and free speech. “More and more of my friends and colleagues are experiencing fear and harassment.”

Two years into a sweeping offensive against dissent, Mr. Xi has been intensifying his focus on perceived ideological opponents, sending ripples through universities, publishing houses and the news media and emboldening hard-liners who have hailed him as a worthy successor to Mao Zedong.

[…]Mr. Xi’s recent orders and the accompanying surge of pressure on political foes further dispelled initial suspicions that his ideological hardening was a feint to establish his credibility with traditionalists as he settled into power. Instead, his continuing campaign against Western-inspired ideas has emboldened traditional party leftists.

This is why libertarians like Rand Paul can never be the Republican candidate for President. Foreign policy is one of the main responsibilities of the President. When it comes to choosing our leaders, we have to choose someone who sees what has and has not worked in the past. Trade is not a solution to reining in strong anti-Western nations, something else (maybe like Reagan in the Cold War?) is needed to deal with evil regimes. We made a mistake throwing Cuba a lifeline just as we had them on the ropes. We have to look at the world and ask what comes after stage one of foreign policy decisions – for all parties. The trouble with libertarians is that they don’t apply the economic way of thinking to foreign policy.

Filed under: News, , , , , , , , , , , , , ,

Was Stalin an atheist? Is atheism or communism responsible for mass murders?

Let’s take a look at what Josef Stalin did during his rule of Russia in the 1920s and 1930s.

The Library of Congress offers this in their “Soviet Archives exhibit”:

The Soviet Union was the first state to have as an ideological objective the elimination of religion. Toward that end, the Communist regime confiscated church property, ridiculed religion, harassed believers, and propagated atheism in the schools. Actions toward particular religions, however, were determined by State interests, and most organized religions were never outlawed.

The main target of the anti-religious campaign in the 1920s and 1930s was the Russian Orthodox Church, which had the largest number of faithful. Nearly all of its clergy, and many of its believers, were shot or sent to labor camps. Theological schools were closed, and church publications were prohibited. By 1939 only about 500 of over 50,000 churches remained open.

Let’s see more from a peer-reviewed journal article authored by Crispin Paine of the University College, London:

Atheist propaganda and the struggle against religion began immediately after the Bolsheviks seized power in 1917. While social change would, under Marxist theory, bring religion to disappear, Leninists argued that the Party should actively help to eradicate religion as a vital step in creating ‘New Soviet Man’. The energy with which the Party struggled against religion, though, varied considerably from time to time and from place to place, as did its hostility to particular faith groups. The 1920s saw the closure of innumerable churches and synagogues (and to a lesser extent mosques) and the active persecution of clergy and harassment of believers. From 1930, though, Stalin introduced a less aggressive approach, and wartime support for the government earned for the Russian Orthodox Church, at least, a level of toleration which lasted until Stalin’s death. Under Khrushchev antireligious efforts resumed, if spasmodically, and they lasted until the end of the Soviet Union.

An article from the pro-communism Marxist.com web site says this about Stalin:

During the ultra-left period of forcible collectivisation and the Five Year Plan in Four an attempt was made to liquidate the Church and its influence by government decree. Starting in 1929 churches were forcibly closed and priests arrested and exiled all over the Soviet Union. The celebrated Shrine of the Iberian Virgin in Moscow – esteemed by believers to be the “holiest” in all Russia was demolished – Stalin and his Government were not afraid of strengthening religious fanaticism by wounding the feelings of believers as Lenin and Trotsky had been! Religion, they believed, could be liquidated, like the kulak, by a stroke of the pen. The Society of Militant Atheists, under Stalin’s orders, issued on May 15th 1932, the “Five Year Plan of Atheism” – by May 1st 1937, such as the “Plan”, “not a single house of prayer shall remain in the territory of the USSR, and the very concept of God must be banished from the Soviet Union as a survival of the Middle Ages and an instrument for the oppression of the working masses.”!

Now, if all you read were atheist web sites, you’d think that Stalin loved religion and wasn’t opposed to Christianity at all. An atheist I know told me that Stalin was a Christian because that’s what he was as a child at one point. Funny sort of way to carry out your Christian faith, isn’t it? If you read atheist web sites, you’d expect Stalin to have had the career of a William Lane Craig or a J.P. Moreland. And yet in the fever swamp of atheist web sites, this is what they tell themselves. They believe it because they want to believe it. They have to believe it, in order to keep God at bay.

Now, if you were going to pick a hero of the Christian faith, you’d probably pick a real fundamentalist like William Wilberforce, who freed the slaves – because of his evangelical Christian convictions. Wilberforce took Christianity seriously – he believed every verse of the Bible, he tried to convert people to his faith, and he pushed his faith on others by passing laws. He was the worst nightmare of atheism – a politically active Evangelical Christian.

But who is a great atheist who was politically active? When I think of a great atheist, someone who really did the most to oppose the “lie” of God’s existence, I think of Josef Stalin. So what kind of morality can we expect from someone who takes the message of Richard Dawkins and Dan Barker seriously and has the political power to really do something about it?

The Ukraine Famine

Take a look at this UK Daily Mail article about a great achievement of the atheist Josef Stalin, which occurred in 1932-1933.

Excerpt:

Now, 75 years after one of the great forgotten crimes of modern times, Stalin’s man-made famine of 1932/3, the former Soviet republic of Ukraine is asking the world to classify it as a genocide.

The Ukrainians call it the Holodomor – the Hunger.

Millions starved as Soviet troops and secret policemen raided their villages, stole the harvest and all the food in villagers’ homes.

They dropped dead in the streets, lay dying and rotting in their houses, and some women became so desperate for food that they ate their own children.

If they managed to fend off starvation, they were deported and shot in their hundreds of thousands.

So terrible was the famine that Igor Yukhnovsky, director of the Institute of National Memory, the Ukrainian institution researching the Holodomor, believes as many as nine million may have died.

[…]Between four and five million died in Ukraine, a million died in Kazakhstan and another million in the north Caucasus and the Volga.

By 1933, 5.7 million households – somewhere between ten million and 15 million people – had vanished. They had been deported, shot or died of starvation.

This is what follows when you believe that the universe is an accident, that there is no objective good and evil, that human beings are just animals, that no God will hold us accountable, and that human beings are not made in the image of God for the purpose of freely choosing to come into a relationship with him. The Ukrainian famine is an action that came from a man whose worldview was passionate atheism.

Atheism today

You might think that today’s atheists are much different than Josef Stalin, but understand that according to a recent survey of atheists conducted by atheists, 97% of atheists are pro-abortion. How many people have been killed by abortion? 56 million in the United States alone. Atheists in a society like ours, founded on Judeo-Christian values, are obviously going to live a lot better than Stalin. For one thing, they don’t have the power that Stalin had to eradicate theism, although you can see Stalinism in the anti-Christian activities of groups like the Freedom From Religion Foundation. But take away the Judeo-Christian foundations of this society, and what would you see atheists doing?

Remember the words of Richard Dawkins:

The total amount of suffering per year in the natural world is beyond all decent contemplation. During the minute that it takes me to compose this sentence, thousands of animals are being eaten alive, many others are running for their lives, whimpering with fear, others are slowly being devoured from within by rasping parasites, thousands of all kinds are dying of starvation, thirst, and disease. It must be so. If there ever is a time of plenty, this very fact will automatically lead to an increase in the population until the natural state of starvation and misery is restored. In a universe of electrons and selfish genes, blind physical forces and genetic replication, some people are going to get hurt, other people are going to get lucky, and you won’t find any rhyme or reason in it, nor any justice. The universe that we observe has precisely the properties we should expect if there is, at bottom, no design, no purpose, no evil, no good, nothing but pitiless indifference.

(“God’s Utility Function,” Scientific American, November, 1995, p. 85)

Now, having said that, I readily admit that many atheists adopt Judeo-Christian values if their society is saturated with them, but they are acting better than their worldview requires. They are acting inconsistently with what atheism really teaches. It’s good for us that they do, but for how long?

Filed under: Polemics, , , , , , , , , , , , , , , , , , , , , ,

Does foreign policy matter? Obama’s appeasement policy comes with a cost

Obama shakes hands with communist dictator Castro

Obama shakes hands with communist dictator Castro

Just a quick rundown of the foreign policy news that just ruined my day.

Investors Business Daily:

Just as its patron Venezuela hit the rocks, Cuba got a last-minute rescue from none other than President Obama, who announced a Santa Claus-like package of wish-list goodies for the Castro brothers. Why?

In many ways, President Obama’s announced plan to normalize relations with Cuba, lift the embargo, extend trade credits and remove Cuba from the state sponsors of terror list is about on par with the rest of his foreign policy.

It was done by executive order without consulting Congress, just like last month’s decision to temporarily legalize 5 million illegal immigrants.

It was justified by a claim the U.S. embargo was “not working,” comparable to Obama’s claim the U.S. immigration system is “broken.” In reality, the problem in both cases is that of a halfhearted willingness to enforce the law, rendering it full of holes.

As for the hostage swap in the bargain, that of U.S. Agency for International Development subcontractor Alan Gross and another U.S. agent for three professional Cuban intelligence officers linked to the murder of U.S. citizens in the 1996 Brothers to the Rescue shootdown, it was a deal that gave far more than it got, just like the hostage swap with the Taliban of U.S. army deserter Bowe Bergdahl for five terrorists.

[…]One is the strange timing of the announcement, coming just as Venezuela and other nations ruled by petrotyrants are on the verge of collapse.

Venezuela has played sugar daddy to Cuba for years, shipping 100,000 barrels of free oil to the communist state. It can no longer afford to. Rather than use that as leverage, Obama rescued Cuba despite its repressive human rights record. That’s one odd bailout.

And the bailout won’t be free for U.S. taxpayers.

Obama administration officials have said they are moving swiftly to extend trade credits to Cuba so the $483 million in American goods Cuba now pays for in cash can expand further, thanks to taxpayer-supported U.S. ExImBank trade credits.

In effect, we’ve handed the odious Castro brothers Uncle Sam’s credit card. Given that the Castroites have defaulted on all of their trading partners since 1961, to the tune of at least $70 billion, it’s assumed the Castros, having no sustainable economic model, will eventually default on us too.

Washington Post:

IN RECENT months, the outlook for the Castro regime in Cuba was growing steadily darker. The modest reforms it adopted in recent years to improve abysmal economic conditions had stalled, due to the regime’s refusal to allow Cubans greater freedoms. Worse, the acceleratingeconomic collapse of Venezuela meant that the huge subsidies that have kept the Castros afloat for the past decade were in peril. A growing number of Cubans were demanding basic human rights, such as freedom of speech and assembly.

On Wednesday, the Castros suddenly obtained a comprehensive bailout — from the Obama administration. President Obama granted the regimeeverything on its wish list that was within his power to grant; a full lifting of the trade embargo requires congressional action. Full diplomatic relations will be established, Cuba’s place on the list of terrorism sponsors reviewed and restrictions lifted on U.S. investment and most travel to Cuba. That liberalization will provide Havana with a fresh source of desperately needed hard currency and eliminate U.S. leverage for political reforms.

[…]No wonder Yoani Sánchez, Cuba’s leading dissident blogger, concluded Wednesday that “Castroism has won” and predicted that for weeks Cubans will have to endure proclamations by the government that it is the “winner of its ultimate battle.”

[…]Mr. Obama says normalizing relations will allow the United States to be more effective in promoting political change in Cuba. That is contrary to U.S. experience with Communist regimes such as Vietnam, where normalization has led to no improvements on human rights in two decades. Moreover, nothing in Mr. Obama’s record of lukewarm and inconstant support for democratic change across the globe can give Ms. Sánchez and her fellow freedom fighters confidence in this promise.

The Vietnam outcome is what the Castros are counting on: a flood of U.S. tourists and business investment that will allow the regime to maintain its totalitarian system indefinitely. Mr. Obama may claim that he has dismantled a 50-year-old failed policy; what he has really done is give a 50-year-old failed regime a new lease on life.

We lost our diplomatic leverage by propping up a communist regime.

But maybe communism is working well for the middle class and the poor in Cuba? Is it?

City Journal:

Marxists have ruled Cuba for more than a half-century now. Fidel Castro, Argentine guerrilla Che Guevara, and their 26th of July Movement forced Fulgencio Batista from power in 1959 and replaced his standard-issue authoritarian regime with a Communist one. The revolutionaries promised liberal democracy, but Castro secured absolute power and flattened the country with a Marxist-Leninist battering ram. The objectives were total equality and the abolition of money; the methods were total surveillance and political prisons. The state slogan, then and now, is “socialism or death.”

[…]Cuba has a maximum wage—$20 a month for almost every job in the country. (Professionals such as doctors and lawyers can make a whopping $10 extra a month.) Sure, Cubans get “free” health care and education, but as Cuban exile and Yale historian Carlos Eire says, “All slave owners need to keep their slaves healthy and ensure that they have the skills to perform their tasks.”

[…]The police expend extraordinary manpower ensuring that everyone required to live miserably at the bottom actually does live miserably at the bottom. Dissident blogger and author Yoani Sánchez describes the harassment sarcastically in her book Havana Real: “Buses are stopped in the middle of the street and bags inspected to see if we are carrying some cheese, a lobster, or some dangerous shrimp hidden among our personal belongings.” Perhaps the saddest symptom of Cuba’s state-enforced poverty is the prostitution epidemic—a problem the government officially denies and even forbids foreign journalists based in Havana to mention. Some Cuban prostitutes are professionals, but many are average women—wives, girlfriends, sisters, mothers—who solicit johns once or twice a year for a little extra money to make ends meet.

[…]Citizens who take public transportation to work—which includes almost everyone, since Cuba hardly has any cars—must wait in lines for up to two hours each way to get on a bus. And commuters must pay for their ride out of their $20 a month. At least commuter buses are cheap. By contrast, a one-way ticket to the other side of the island costs several months’ pay; a round-trip costs almost an annual salary.

[…]As for the free health care, patients have to bring their own medicine, their own bedsheets, and even their own iodine to the hospital. Most of these items are available only on the illegal black market, moreover, and must be paid for in hard currency—and sometimes they’re not available at all. Cuba has sent so many doctors abroad—especially to Venezuela, in exchange for oil—that the island is now facing a personnel shortage.

[…][A]lmost everyone in Havana lives in a Detroit-style wreck, with caved-in roofs, peeling paint, and doors hanging on their hinges at odd angles.

[…]Even things as simple as cooking oil and soap are black-market goods. Individuals who, by some illegal means or another, manage to acquire such desirables will stand on street corners and whisper “cooking oil” or “sugar” to passersby, and then sell the product on the sly out of their living room. If they’re caught, both sellers and buyers will be arrested, of course, but the authorities can’t put the entire country in jail. “Everyone cheats,” says Eire. “One must in order to survive.

When Barack Obama uses American taxpayer money to prop up communism, he keeps this system going. The only solution is for the people to revolt against communism, but when he hands money to the government, they buy more guns and keep the people down in poverty and squalor while the rich communist elites rule over them. It’s evil.

Meanwhile, North Korea is able to attack our private industry without even a peep from cowardly Obama and his retreat from Iraq now allows Islamic State terrorists to execute 150 captured women, many of them pregnant, who refused to become “wives” to the terrorists. Any husbands they had would have been shot right in front of them. There is only one way to do something about these problems in the world and that’s with a strong U.S. military, strong sanctions and tough negotiations. Obama has failed these victims in every way because of his approval of the evildoers and his rejection of our democratic allies. We need to have more confidence in the goodness of American power and the American way of life.

Filed under: News, , , , , , , , , ,

Obama on stay-at-home moms: “that’s not a choice we want them to make”

Breitbart reports:

During a speech in Rhode Island today, President Obama stressed the importance of public pre-school in America, pointing out that the cost of daycare was getting too high.

“Moms and dads deserve a great place to drop their kids off every day that doesn’t cost them an arm and a leg,” Obama stated. “We need better child care, day care, early child education policies.”

Obama explained that in many states it cost parents more money to put their kids in day care than it cost to put them in a public university.

“Too often parents have no choice but to put their kids in cheaper day care that maybe doesn’t have the kinds of programming that makes a big difference in a child’s development,” he said.

Because America lacks public pre-school, Obama said, women often earned less money than men.

“Sometimes, someone, usually Mom, leaves the workplace to stay home with the kids, which then leaves her earning a lower wage for the rest of her life as a result,” he said. “That’s not a choice we want Americans to make.”

Creating public pre-school, Obama explained, was not only “good for families” but “good for the children.”

So I watched this video in which Obama flat out says that he favors having the government spend more money on social programs for children, despite the fact that we know that mothers are best for young children. He is not the first to push this, Nancy Pelosi did the same in 2013. This is the view championed by Democrats.

These programs are a boon to the government workers who vote for Obama, because they will be run by secular leftist social workers. This is how they earn their living – by separating mothers from their children. They want to avoid having to please customers in the private sector – that’s too risky. They prefer to take over the job of mothering from a child’s biological mother. That’s safe. You don’t get fired from the government, and you don’t have the pressure of having to care about what customers think of you. This is attractive to people on the left – they want work to be like this, even if it means a child’s misery.

How will he achieve this?

Well, he will raise taxes on the husband, so that the husband can no longer support the family on his own. This will cause the wife to have to leave the children and go to work in order to make ends meet. This way, Obama can separate the child from her parents, and from the worldview of the parents. Instead of having parents working to raise their own child, you have the government raising children to believe what the government wants them to believe. For a secular government, this will probably be that family is bad, that religion is bad, that traditional morality is bad, that the free market system is bad, and that bigger government is good. Think of examples like sex education (abortion advocacy) and global warming (anti-capitalism), if you doubt this anti-family, anti-free-market angle exists.

Does it excite me, as a single chaste man, to get married and be a husband in a world run by feminist socialist leftists like Obama? No.

I am getting up every morning and going to work so that I and my future wife can run my family our way – to promote our worldview and our values. We would be doing the work of raising a family, so we should be allowed to pass on our values. But thanks to feminism and socialism, we have these bloated parasites in government who steal our children from us and then charge us money in order to pay for imposing their disgusting, immoral values on them. The American people somewhere along the line decided that even though I earn the money, that someone else ought to be passing on their values to my children. And this would be all the people who traditionally vote Democrat. They decided that. There are many young, unmarried Christian women who vote Democrat. They decided that. They “feel” that more powerful government is more desirable than more powerful families. Nothing they hear in church teaches them not to vote for stronger government over stronger families.

I would like more Christian leaders to be telling the young, unmarried women to stop voting for bigger secular government. Someone has to get that through their heads – that men do not like sharing the duty of leadership with anyone – especially not with clowns who have degrees in the humanities and could not find private sector jobs serving customers. Unfortunately, my friends tell me that the most common books being read by young Christian women on dating sites are books by A.W. Tozer, Francis Chan, Harry Potter, Left Behind, Phillip Yancey, Beth Moore, Nancy Leigh Demoss, Joyce Meyer, Elizabeth George, Stasi Eldgredge and so on. There is a complete lack of seriousness among many Christian women about marriage and family as it relates to economics, politics and education. It’s not just apologetics that is lacking. Everything is focused on feelings, but the attraction and feasibility of the marriage/family plan is diminishing after each election right under our noses. It is diminishing for men. And there is no marriage and parenting without a man, however much Christians seem to be turning toward and celebrating single motherhood – i.e. – marriage to the secular state.

Young unmarried women, if you expect to get married, you’d better start voting for small government. Small government means bigger individuals and bigger families, and that’s exactly what men who consider marriage and families want. Wake up.

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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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