For a long time, the Democrats have denounced "income inequality" in America. All we heard for years was that only the rich get richer while the middle class and poor are stuck with stagnant or declining incomes. And the Democrats always blame the Republicans for this condition, even though that is not true. For the Democrats, the rich don't pay their "fair share" of taxes, and that is due to GOP tax cuts. The reality, though is that the wealthier 50% of households pay 97% of all federal taxes while the poorer 50% pay just 3% of the taxes. Indeed, the top 10% of households pay over 70% of all federal taxes and the top 1% of households pay over 27% of all federal taxes. These facts don't matter to the Democrats, however, the wealthy just don't pay their fair share.
Under Obama and the Democrats, though, the policies that were followed did actually result in stagnant middle class and working class incomes. In general, only the rich got richer. Indeed, if you look at the election results, you quickly see that the Democrats are actually the party of the wealthy. Super wealthy districts like Manhattan's east side, Beverly Hills, and wealthy sections of San Francisco are all strongly supportive of Democrats. The super-rich understand that while the Democrats denounce the wealthy, they actually follow policies designed to aid the wealthy and hurt the middle and lower income groups. For example, think about unrestrained illegal immigration, a main tenet of the Democrat party these days. If an extra 100,000 poor, uneducated immigrants arrive in a city like Los Angeles, it doesn't affect the salaries of the highly paid wealthy residents. These new illegal residents offer them no competition. These illegals, however, do compete with the poor Americans and keep wages from rising. The poor take it on the chin because their incomes are held down through more competition from new low skilled workers. The wealthy, however, get to hire illegals in their businesses at very low wages.
What has happened, though, in the three years since Trump was elected is that the problems of the poor and middle income groups have finally been addressed. The tax cuts were designed to give additional after tax income to those in the middle income groups and they have worked. Removal of unnecessary regulations and lowering of corporate taxes have brought manufacturing jobs back to the USA. Remember when Obama told us that only a magic wand could bring manufacturing back to the USA? In less than three years, the Trump policies have returned over 500,000 new well-paying manufacturing jobs to the USA. That's half a million more middle income or poor families where someone has gotten a job that provides enough income to live a comfortable middle class life. And it didn't take a magic wand, just good policies.
The incomes of the middle class have risen faster than inflation for the first time since before Obama was president. That's right, middle class incomes are RISING under Trump unlike FALLING or STAGNANT under Obama. Many millions of people are no longer on food stamps. That's not because of any change in the requirements to get food stamps, but because millions now have higher incomes. Minorities who seem always to vote Democrat are also getting the benefit of the Trump/GOP policies. The Democrats always talked a good game about "helping" minorities, but the GOP is actually doing that. Black, Hispanic and Asian unemployment is at the lowest level ever, EVER. Just think how many millions more blacks and Hispanics have jobs now than was the case under Obama and the Democrats. Even better, the creation of new businesses by minorities is soaring. New minority owned businesses are being started at a rate close to three times higher than was the case under Obama and the Democrats. Just think what that means. A minority man or woman who starts a new business has a chance to actually become wealthy. Sure, many of these businesses will not succeed, but many will prosper. And each prosperous new minority owned business will provide jobs for many other people. This business creation is the bast way to establish a larger and more prosperous minority middle class and to bring more minorities into the wealthiest Americans.
So what is it that the 2020 Democrat candidates want to do with the economy? They want to go back to the old Obama policies on steroids. They want to have major increases in taxes and regulations. The current front runner Elizabeth Warren wants to destroy certain industries like oil and gas drill, health insurance, health care (doctors, hospitals, nurses), and mining. She has no answers as to how the tens of millions of people who are supported by jobs in these industries will live. She actually has said nonsensical things like that the 2 million people who work in health insurance should transition to selling life insurance. But wait....aren't there already enough life insurance salesmen? Where do the new jobs come from? Will the government now mandate that we all buy life insurance a la Obamacare? Warren also wants to tax capital gains each year by making stocks to market and taxing the "profits". Understand what that means; if you have an IRA or a 401K where you have retirement savings and the investments go up in a year, Warren wants to tax that increase. There won't be anyone saving for retirement anymore. Remember over 50% of all Americans own stock either directly or through their retirement plans. Much higher taxes of the sort Warren wants to impose will also soak up a great deal of cash that is now getting invested into new businesses. All those new businesses started by minorities that I mentioned above need cash in order to survive. You can't open a store without inventory, and that takes money. You can't run a service business without and office, phones, computers, and supplies and that takes cash. If you open a business and it take three or four months before people start using your services in substantial numbers, you can't survive for those months if you don't have the cash to tide you over until you start earning a profit. Your business fails. Warren, however, wants to raise taxes that will sop up nearly all the cash that is needed to start new businesses.
Remember something over 50% of all new jobs in this country are created by small businesses, and a big percentage of those are new businesses. Warren not only wants to throw millions out of work by destroying their industries, but she also wants to destroy the ability of new businesses to provide the means to create new jobs that can take these unemployed people back into the economy. It's a plan for a major DEPRESSION. But it won't just be a depression. It will also mean the end of the American dream. No longer will someone be able to succeed through hard work and luck to move up into the wealthy. That has always been the hallmark of America. We don't have an aristocracy, a privileged class that stays in place. Sure, there are super rich people across the country, but unlike nearly every other country on earth, the wealthy in America change. On average, every ten years something in the area of 40% of the top fifth of American households by income change. People move into wealth and out of wealth on a regular basis. There's upward mobility in our country. Someone born poor may one day become super-rich. It's not just the Bill Gates, Mark Zuckerberg, types who create a mega-company from nothing who take advantage of that mobility. The army vet who leaves the service and starts a security company that quickly provides him and his family with an income of $300,000 per year is suddenly wealthy. The minority family that opens a dry cleaning business which succeeds and provides a similar income is also quickly wealthy. The Democrats, and Warren especially, would destroy that possibility. Their idea of income equality is that everyone would be poor, equally poor!
The Socialist plans of the Democrats actually hark back to a famous remark made by former British prime minister Margaret Thatcher who said that Socialism doesn't work because sooner or later you run out of someone else's money. Look at Warren's 6% wealth tax. Warren says it's no big deal; she says that the super wealthy can make more than that in to stock market where average returns over the last ten years have been 8%. Sounds nice, doesn't it? But then you have to remember that gains in the stock market will all be taxed at 50% each year so even were that 8% growth to continue, it would only amount to 4% after tax. But those 8% returns wouldn't continue; stock prices would fall big time. Corporate earnings would collapse due to the depression and what earnings there were would be eaten up by high federal taxes that the Democrats want. Stocks might lose half of their value or more. So think what that means: all those tax revenues that Warren is already spending won't be there. There won't be any taxes on rising stock prices cause the prices won't rise. There won't be high incomes to tax, because they will fall in a major way due to the depression. All those new minority businesses that are still in shaky start up mode will fail, so much for upward mobility for minorities. But what would Warren and the Democrats do? They would tell us all that this is the fault of the rich not paying their fair share and raise taxes further. Remember, the Democrats raised taxes to 90% at the end of the depression in the 1930s, and people like Bernie Sanders still thinks that is a good rate to shoot for. The wealthy who can flee will leave the country, but those who stay will see their wealth eaten up quickly by the government. The wealth that is the seeds for future economic growth in the USA will be destroyed. We will indeed run out of other people's money. We will become an economic basket case like Venezuela.
Under Obama and the Democrats, though, the policies that were followed did actually result in stagnant middle class and working class incomes. In general, only the rich got richer. Indeed, if you look at the election results, you quickly see that the Democrats are actually the party of the wealthy. Super wealthy districts like Manhattan's east side, Beverly Hills, and wealthy sections of San Francisco are all strongly supportive of Democrats. The super-rich understand that while the Democrats denounce the wealthy, they actually follow policies designed to aid the wealthy and hurt the middle and lower income groups. For example, think about unrestrained illegal immigration, a main tenet of the Democrat party these days. If an extra 100,000 poor, uneducated immigrants arrive in a city like Los Angeles, it doesn't affect the salaries of the highly paid wealthy residents. These new illegal residents offer them no competition. These illegals, however, do compete with the poor Americans and keep wages from rising. The poor take it on the chin because their incomes are held down through more competition from new low skilled workers. The wealthy, however, get to hire illegals in their businesses at very low wages.
What has happened, though, in the three years since Trump was elected is that the problems of the poor and middle income groups have finally been addressed. The tax cuts were designed to give additional after tax income to those in the middle income groups and they have worked. Removal of unnecessary regulations and lowering of corporate taxes have brought manufacturing jobs back to the USA. Remember when Obama told us that only a magic wand could bring manufacturing back to the USA? In less than three years, the Trump policies have returned over 500,000 new well-paying manufacturing jobs to the USA. That's half a million more middle income or poor families where someone has gotten a job that provides enough income to live a comfortable middle class life. And it didn't take a magic wand, just good policies.
The incomes of the middle class have risen faster than inflation for the first time since before Obama was president. That's right, middle class incomes are RISING under Trump unlike FALLING or STAGNANT under Obama. Many millions of people are no longer on food stamps. That's not because of any change in the requirements to get food stamps, but because millions now have higher incomes. Minorities who seem always to vote Democrat are also getting the benefit of the Trump/GOP policies. The Democrats always talked a good game about "helping" minorities, but the GOP is actually doing that. Black, Hispanic and Asian unemployment is at the lowest level ever, EVER. Just think how many millions more blacks and Hispanics have jobs now than was the case under Obama and the Democrats. Even better, the creation of new businesses by minorities is soaring. New minority owned businesses are being started at a rate close to three times higher than was the case under Obama and the Democrats. Just think what that means. A minority man or woman who starts a new business has a chance to actually become wealthy. Sure, many of these businesses will not succeed, but many will prosper. And each prosperous new minority owned business will provide jobs for many other people. This business creation is the bast way to establish a larger and more prosperous minority middle class and to bring more minorities into the wealthiest Americans.
So what is it that the 2020 Democrat candidates want to do with the economy? They want to go back to the old Obama policies on steroids. They want to have major increases in taxes and regulations. The current front runner Elizabeth Warren wants to destroy certain industries like oil and gas drill, health insurance, health care (doctors, hospitals, nurses), and mining. She has no answers as to how the tens of millions of people who are supported by jobs in these industries will live. She actually has said nonsensical things like that the 2 million people who work in health insurance should transition to selling life insurance. But wait....aren't there already enough life insurance salesmen? Where do the new jobs come from? Will the government now mandate that we all buy life insurance a la Obamacare? Warren also wants to tax capital gains each year by making stocks to market and taxing the "profits". Understand what that means; if you have an IRA or a 401K where you have retirement savings and the investments go up in a year, Warren wants to tax that increase. There won't be anyone saving for retirement anymore. Remember over 50% of all Americans own stock either directly or through their retirement plans. Much higher taxes of the sort Warren wants to impose will also soak up a great deal of cash that is now getting invested into new businesses. All those new businesses started by minorities that I mentioned above need cash in order to survive. You can't open a store without inventory, and that takes money. You can't run a service business without and office, phones, computers, and supplies and that takes cash. If you open a business and it take three or four months before people start using your services in substantial numbers, you can't survive for those months if you don't have the cash to tide you over until you start earning a profit. Your business fails. Warren, however, wants to raise taxes that will sop up nearly all the cash that is needed to start new businesses.
Remember something over 50% of all new jobs in this country are created by small businesses, and a big percentage of those are new businesses. Warren not only wants to throw millions out of work by destroying their industries, but she also wants to destroy the ability of new businesses to provide the means to create new jobs that can take these unemployed people back into the economy. It's a plan for a major DEPRESSION. But it won't just be a depression. It will also mean the end of the American dream. No longer will someone be able to succeed through hard work and luck to move up into the wealthy. That has always been the hallmark of America. We don't have an aristocracy, a privileged class that stays in place. Sure, there are super rich people across the country, but unlike nearly every other country on earth, the wealthy in America change. On average, every ten years something in the area of 40% of the top fifth of American households by income change. People move into wealth and out of wealth on a regular basis. There's upward mobility in our country. Someone born poor may one day become super-rich. It's not just the Bill Gates, Mark Zuckerberg, types who create a mega-company from nothing who take advantage of that mobility. The army vet who leaves the service and starts a security company that quickly provides him and his family with an income of $300,000 per year is suddenly wealthy. The minority family that opens a dry cleaning business which succeeds and provides a similar income is also quickly wealthy. The Democrats, and Warren especially, would destroy that possibility. Their idea of income equality is that everyone would be poor, equally poor!
The Socialist plans of the Democrats actually hark back to a famous remark made by former British prime minister Margaret Thatcher who said that Socialism doesn't work because sooner or later you run out of someone else's money. Look at Warren's 6% wealth tax. Warren says it's no big deal; she says that the super wealthy can make more than that in to stock market where average returns over the last ten years have been 8%. Sounds nice, doesn't it? But then you have to remember that gains in the stock market will all be taxed at 50% each year so even were that 8% growth to continue, it would only amount to 4% after tax. But those 8% returns wouldn't continue; stock prices would fall big time. Corporate earnings would collapse due to the depression and what earnings there were would be eaten up by high federal taxes that the Democrats want. Stocks might lose half of their value or more. So think what that means: all those tax revenues that Warren is already spending won't be there. There won't be any taxes on rising stock prices cause the prices won't rise. There won't be high incomes to tax, because they will fall in a major way due to the depression. All those new minority businesses that are still in shaky start up mode will fail, so much for upward mobility for minorities. But what would Warren and the Democrats do? They would tell us all that this is the fault of the rich not paying their fair share and raise taxes further. Remember, the Democrats raised taxes to 90% at the end of the depression in the 1930s, and people like Bernie Sanders still thinks that is a good rate to shoot for. The wealthy who can flee will leave the country, but those who stay will see their wealth eaten up quickly by the government. The wealth that is the seeds for future economic growth in the USA will be destroyed. We will indeed run out of other people's money. We will become an economic basket case like Venezuela.
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