It’s safe to say that the economy has had a sluggish attempt at recovery under Obama with tax increases, massive federal spending and new regulations stunting business growth.
Wall Street Journal recently outlined the pathetic US productivity in the article, “Productivity Slump Threatens Economy’s Long-Term Growth.”
“The longest slide in worker productivity since the late 1970s is haunting the U.S. economy’s long-term prospects, a force that could prompt Federal Reserve officials to keep interest rates low for years to come,” writes the Wall Street Journal. The U-6 underemployment rate (those workers who are part-time purely for economic reasons) is double the traditional unemployment (U-3) rate.
This will only continue if Clinton gets elected.
“Her program would raise taxes on so-called rich people, corporations, capital gains, death, and stock transactions. She would spend massively on infrastructure and again mandate rules for private businesses. Remarkably, she has no corporate tax reform (even Obama had a plan) to revive corporate investment and boost productivity, wages, and living standards,” writes Larry Kudlow, host of The Larry Kudlow Show and former Reagan economic advisor for CNBC.
Clinton’s plan will only keep the economy in the state it is, all for the notion of keeping things “fair” for Americans.
“The contrast between the two economic-policy strategies couldn’t be clearer. Clinton has a recession strategy. Trump has a recovery strategy,” writes Kudlow for CNBC.
The past has shown that tax cuts and reforming welfare leads to economic growth. But, again Clinton wants to increase taxes and regulations.
In Detroit, Clinton kept stating that the 1% needs to pay its fair share. But a recent CBO study shows that this group already pays almost everybody’s share. The recent Tax Foundation study with IRS data revealed that in 2013, the 1% paid an average of 34% of all federal taxes. The middle class paid only 12.8%.
Clinton doesn’t take into account that by reducing business taxes, the middle and wage earners benefit the most.
“Plainly, Trump intends to reward success, while Clinton will punish it. She wants the government to run the economy. He believes in the growth engine of free enterprise,” writes Kudlow.
Trump is first and foremost a businessman. He understands that healthy businesses mean good-paying jobs. While Clinton has never run a business, so she hasn’t seen first-hand how overregulation and taxes ultimately hurt the workers with less hours and wages.
Editor’s note: While Hillary is no Bernie Sanders, she still has a socialist bent. She plans to tax “rich” people but the numbers say if she taxed the top 1% at a rate of 100% it would hardly put a dent in the budget deficit. It will however reduce the ability of business owners to produce jobs.