Reminder: Economic Expansion Helps Everyone
The Left derides it as "trickle-down" economics, but it works for those who need it.
A few weeks ago, Dr. Arthur Laffer was recognized by President Donald Trump at the White House with the presentation of the Presidential Medal of Freedom. And why was the father of supply-side economics, the top economic adviser to former President Ronald Reagan and coauthor of the book Trumponomics: Inside the America First Plan to Revive Our Economy, awarded the highest civilian honor? It’s presented to those who have made “an especially meritorious contribution to the security or national interests of the United States, world peace, cultural or other significant public or private endeavors.”
As most conservatives who love America know, authentic freedom is characteristic of individual self-reliance. That self-reliance comes when work, wealth, and worth are valued. Currently, America is in the midst of the longest economic expansion in our nation’s history thanks to policies that have reversed the failed beliefs that government has its own money, that jobs are created by the votes of politicians, and that Americans are best when beholden to and kept by the bureaucracies of the state.
During the presentation ceremony of this “supreme civilian decoration in precedence in the United States,” Dr. Laffer, whose policies are rooted in the soil of true freedom, was praised by Trump: “Few people in history have revolutionized economic thought and policy like Dr. Art Laffer. He developed a brilliant theory, shaped unprecedented economic reforms, and helped turn a severe recession into a remarkable boom. He proved that the most powerful way to grow the economy and raise government revenue was not to increase tax rates but to adopt strong incentives that unleash the power of human freedom and innovate, create jobs, and deliver greater opportunity to all Americans. And he’s proved it over and over again.”
In years past, the Left has scoffed at the “Laffer Curve,” a doctrine holding that if individuals keep more of their own money, along with businesses, through lower taxes and minimal regulation, economic growth would be the result and government revenue would actually increase.
In 2018, there was economic (GDP) growth of 3% after the tax cuts of 2017. Over the ensuing decade, that will leave $1.5 trillion to individuals and companies that otherwise would have been sent to Washington for the insatiable spending appetite of the incumbent class that is without partisan differentiation. For 10 straight months, average wages have grown about 3%; however, for the poorest fourth of the labor force, highs of 4.4% wage growth have been measured and reported by the Federal Reserve Bank of Atlanta. As conveyed by the Daily Signal, “The highest-income workers’ wages are growing at a more modest rate, more than a percentage point lower than those of low-wage workers.”
Americans’ wages are rising while unemployment is at a near-50-year low of 3.7%. Dealing with the illegal cash-paid workforce that undermines the particularly undereducated and lower-skilled workers has been part of “Trumponomics.” Synonymous with supply-side theories that open markets coupled with, as Trump has shown, fair trade (which also includes free trade) is the winning formula. And, not too surprising, those who need the most help are getting it, says The Daily Signal in reporting that the unemployment rate for blacks is just 6%, right at the historic low of 5.9%. Moreover, “women, Hispanics and workers without a college degree are seeing similar trends.”
There are three threats to this good news and effective policy: The failure to secure our borders to the influx and invasion of tens of thousands of illegal immigrants that require massive entitlement spending and feed the unlawful job market; the idiocy seen on the political Left that demands freedom be substituted with socialism; and the unbridled and excessive spending of all of DC.
Once again, leftists are likely stewing in their realization that a political novice, Donald Trump, has taken tried-and-true-conservative principles, applied them, and voila… We’ve found the “magic wand” that supposedly would be needed by Trump to bring back certain jobs and boost America’s world-leading economy.
The facts are that, when markets are free and fair and taxes are lower with fewer regulations, so-called “trickle-down” economics works. Let’s all enjoy and keep “Laffing.”