Economic myths exploded
Adolph Hitler claimed — and proved, I might-add — if one tells a lie big enough and often enough, by the mere repetition people will begin to believe it. In line with this theory Republican spin doctors, especially the one in the White House, have hammered away with the assertion that the U.S. economy grows faster under Republican administrations until it has been widely accepted. Independent objective economic assessments, however, suggest otherwise.
An in-depth study by the Woodrow Wilson School of Economics at Princeton University over a sixty-five-year period completed in July of 2014 indicates the U.S. economy has performed better by virtually every measurement under the Democrats. Over the study period National income (GDP) growth averaged 4.35% under the Democrats and 2.54% under the Republicans. And private-sector job creation grew 1.6 times faster than under the Republicans.
GOP attack dogs crow about lagging economic growth under President Obama. But after inheriting the worst economy since the Great Depression, by almost any measurement the economy performed better under Obama than in the previous eight years under Republicans. And job creation began to grow impressively during his last two years. Private sector job growth averaged over two percent annually under Obama while we actually lost jobs in some years under George W. Bush.
I would not be so presumptuous as to suggest that all the higher numbers under the Democrats are entirely due to their superior policies and leadership. Much economic performance is subject to independent factors largely beyond the control of any administration, Democrat or Republican. Economies can be affected by demographic shifts, world energy price fluctuations, wars, interaction with foreign economies and Federal Reserve policies which, supposedly, are independent of politics.
In the case of Ronald Reagan, for whom, incidentally, I voted twice, economic growth figures compared to those of his predecessor, Jimmy Carter, were not as rosy as Republicans originally advertised, a 3.64 percent GDP growth compared to Carter’s respectable 3.32 percent. And Reagan’s growth figures appear rather puny when compared to some Democrats.
Of primary concern to me is the skyrocketing growth of our national debt which has been consistently higher under GOP administrations. Yes, Republicans will spend when necessary; they particularly love military spending. But they balk at raising the taxes to pay for it and this winds up adding to our already-bloated national debt. Again, I’ll ask, which is worse, “tax-and-spend” Democrats or “borrow-and-spend” Republicans?
The Republicans cater mainly to the tiny wealthiest sector that comprises considerably less than one percent of our population but is the source of most of the wealth and much of the GOP’S funding. With “tax relief” legislation this elite group is taxed at a substantially lower rate than their counterparts in other developed nations. The Republican Party line claims the wealthy will invest their tax savings and thereby create economic growth and jobs. This disproven supply-side economics theory is the most outlandish Republican myth of all. Conservative by nature, the wealthy elite will invest only when they see opportunities for increased dividends and capital growth. And their investing is never inhibited by a lack of money anyway. To best grow the economy tax cuts should be given to lower and middle-income families who will spend it on real estate and consumer goods, create more demand and stimulate growth and investment. Tax cuts for the wealthiest few only further widen the alreadydisparate income gap.
George B. Reed Jr., who lives in Rossville, can be reached by email at reed1600@bellsouth.net.