The Catoosa County News

More myths exploded

- LOCAL COLUMNIST| GEORGE B. REED JR.

ADdolph Hitler claimed (and proved, I might add) that if one tells lies big enough and often enough, by the mere repetition itself people will begin to believe them.

Accordingl­y, Republican spin doctors, including the one in the White House, have hammered away with the assertion that everyone knows the U.S. economy grows faster under Republican administra­tions until it has been generally accepted as gospel. But the historical record suggests otherwise.

Extensive research by the Woodrow Wilson School of Economics at Princeton University reveals that the U.S. economy has performed better by most measuremen­ts under Democratic administra­tions. National income (GDP) and privatesec­tor job creation have grown 1.6 times and 2.5 times faster, respective­ly, under Democrats than under Republican­s.

GOP attack dogs crow about lagging economic growth under President Obama. But after inheriting the worst economy since the Great Depression in 2009, by 2012 GDP and private-sector job creation resumed a steady upward growth under Obama. Trump inherited an already growing economy in 2017, he didn’t create one. Job creation had grown for 71 straight quarters under Obama, averaging 2% annually. In the period following Bush’s 2003 “tax relief” cuts we experience­d some of the slowest economic growth in decades. Doubt any of this? Google it up and see for yourself.

I would not be so presumptuo­us as to suggest that all the higher growth numbers under the Democrats are due to their superior policies and leadership. Economic performanc­e is often beyond the control of any administra­tion. Economies can also be affected by demographi­c shifts, world energy price fluctuatio­ns, wars, interactio­n with foreign economies and Federal Reserve policies. Neverthele­ss, the Democrat’s numbers have been consistent­ly better.

In the case of Ronald Reagan’s economic growth figures compared to those of his predecesso­r, Jimmy Carter, they were not as rosy as Republican­s advertise: a 3.64% average GDP increase compared to Carter’s respectabl­e 3.32%. But Reagan’s growth figures can appear rather average compared to other Democrats.

The most disconcert­ing statistic is the soaring growth of our national debt. And this has grown alarmingly faster under the GOP. Republican­s will spend when necessary, particular­ly military spending, their pet. They just balk at raising the taxes to pay for it and it winds up adding to our already-bloated federal debt. I’ll ask again, which is worse, “Tax-and-spend” Democrats” or “Borrow-and-spend” Republican­s?

The Republican power structure caters largely to the tiny wealthiest segment that comprises much less than 1% of our population but is a major source of GOP funding. Because of so-called “tax relief” legislatio­n, this tiny elite group is taxed at a substantia­lly lower rate than their counterpar­ts elsewhere. The justificat­ion for this favored treatment claims the wealthy will invest their tax savings and create more economic growth and jobs. This is repeatedly-failed supply-side economics. Conservati­ve by nature, the wealthy 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 shouldn’t tax cuts be given to lower and middle-income families who will spend it on real estate, transporta­tion and consumer goods? This would create more demand, and thereby stimulate growth and investment. Tax cuts for the wealthiest few only create more income disparity, not growth.

George B. Reed Jr., who lives in Rossville, can be reached by email at reed1600@bellsouth.net.

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