With all the talk about President Bush’s tax cut extension, we continually hear from liberals like Robert Reich, President Clinton’s former Secretary of Labor, that raising taxes is good for a weak economy and that, as a result of Clinton’s tax hike, the economy started to boom and gained 2.2 million new jobs. Therefore, to Reich and other “tax-the-rich vigilantes,” raising taxes is good thing for the economy. “What are you nuts?”
The truth, which Robert Reich and other Clinton kool-aid drinkers don’t want you to know, is that the economy and the stock market were already booming in the1990s, thanks to former President Reagan and entrepreneurs like Bill Gates and Larry Ellison of Oracle. Clinton was served up a booming economy on a silver platter. He had nothing to do with the boom, yet he thinks we sit on the stupid bench and don’t remember how he took credit for the boom he had nothing to do with, but he did not take credit for a stained blue dress that he had everything to do with!
It’s important to remember that when Clinton raised taxes, the economy was in a position to absorb it. Not like today. The economy was already out of recession in March of 1991, thanks to President Reagan and President Bush, Sr. Clinton did not even announce that he was running for President until October, yet he took credit for getting us out of the recession, when the recession was already over, and the booming tech economy was underway. What a fraud.
So, in the final analysis, it really was President Reagan who set the stage for the economic boom of the 1990s. By the time Clinton left office, the economy was butt ugly thanks to his economic team of Larry Summers, Robert Rubin, Timothy Geithner and Rahm Emanuel, the same criminals who destroyed the Reagan-Bush economic boom by abolishing, in 1999, the Glass-Steagall Act of 1933. The result of that was to create derivatives, which financially damaged the country’s working class, while making Clinton’s team wealthy through reverse distribution of wealth from the bottom up.
Also, what Robert Reich and the Democrats don’t want you to know, is that in the twelve months leading up to the time Clinton raised taxes, the economy gained 2,023,000 jobs, which was 168,000 jobs per month. To put things into perspective, in the four years during which democrats controlled Congress, we did not have a twelve-month period where the economy gained 100,000 jobs on a monthly average, let alone 168,000. It is a myth, a lie, a falsehood, created by the Clinton kool-aid drinkers, like Robert Reich, that Clinton, by raising taxes, created 2.2 million jobs.
Timing is everything. Clinton got lucky. He walked into the White House after Ronald Reagan destroyed the Soviet Union and set us on a path of prosperity by cutting taxes from the high 70% to the low 30%. Bill Gates and others were able to raise money on Wall Street as a result of Reagan’s policies. Without those policies, they would not even be around today. You can thank Reagan for all the neat electronic gadgets you hold in the palm of your hand as you send messages to each other.
Reagan’s actions created the opportunity to fund the new tech industry that was in a position to absorb the millions of jobs that were lost due to the closing of factories and transferring of the smoke stack industry jobs to China.
Margaret Thatcher, the British Prime Minister, also got it right when she cut taxes and spending. Like Reagan, she reduced the top income tax rates from 83% to 40% and the basic rate fell to 25%. Capital gains were reduced from 75% to 30% and corporate tax rates were reduced from 52% to 35%. She cut spending by nearly 40%, and the British economy exploded.
In fact, once the Soviet Union collapsed, it began to follow Thatcher’s and Reagan’s policies, but took them even further by introducing an amazing 13% flat tax. An explosive recovery followed and the Russian government's income tax revenues soared 46%. By 2007, income tax revenues were 624% higher than they were in 2000, and Russia was once again a major world power.
Then you have a pathetic leader like Vice President Joe Biden, another liar, who says that the stimulus (not tax cuts) and tax increases (not spending cuts, but rather more spending by government) will create millions of jobs. He lies. Government spending and stimulus has not produced a single net new job in more than a decade. At the end of 1999, 131,402,000 Americans were drawing paychecks. Today, 131,198,000 Americans are drawing paychecks.
To find out what Wall Street and the Government doesn’t want you to know, join me on my nationwide, self-syndicated “Phil’s Gang” radio show each weekday from 3:00pm to 4:00 pm, EST, or join me online at PhilsGang.com, where I’ll see you on the charts!
Happy New Year to you all.