I was listening to Pandora’s “Cool Crooners” station this morning. A thought occurred: What makes Frank Sinatra, Frankie Valli and the Four Seasons, Dean Martin, Nat King Cole, and Tony Bennett, among others, stand head and shoulders above your uncle Fred who just so happens to have a good voice as he works at being a very good CPA? Is their success an accident? Certainly, many factors account for their fame, but in the hustle and bustle of life they congealed into excellence. They had a special talent.
What’s this got to do with economics? A lot. The economist Joseph Schumpeter made it abundantly clear. The economy rides on the backs of a few very talented risk takers, whether it be Henry Ford or Jeff Bezos. The accomplished few weren’t just a collection of lucky mediocrities. At the core, this is a remarkably different story than the one peddled by the Democrats.
To justify their love of the state – the key plank of Progressivism – the Dems have convinced themselves of the bottom-up falsehood. In a nutshell, their favorite suggestion for the economic riddle is to confiscate from the rich, deposit the takings in the government, and then have public employees scatter a portion of the proceeds to the hoi polloi. Leaving aside the absorption of a sizable slice of the booty by a hungry bureaucracy and the political chicanery that is endemic to government, the gimmick remains pure, unadulterated economic nonsense.
It’s as if the Dems will create jobs by punishing job-creators. That’s right, they believe that they can confiscate from the people making thousands of jobs and expect the poorer rungs to more than take up the slack with their limited and desperate consumer spending. The rich guy and gal (or the 38 other genders) can’t help creating jobs, even if they fritter away their gains on yachts, private jets, and California coastal real estate. Talk to the guys and gals building the mansions, making the yachts and fancy jets, or the hirelings who maintain or captain them. How many jobs can we expect from a Section 8 housing recipient?
Let’s face it, the donkey party isn’t about economic sense. They’re all about class identity – as well as the other identities on their long scroll – and class victimhood. They’ve got too much Marx rolling around in their heads. In the end, the scheme won’t pencil out. These materialist levelers forget that the economic pie isn’t a static thing. Yes, some peoples’ slice grows bigger than others, but in reality, all slices expand. That’s the beauty of a growing pie. The pie is dynamic, not static.
The Lefty alternative is like what happens when the Chinese bound the feet of young girls. Everything gets mangled. Specifically, it’s a mad scramble to take as much for yourself from the only treasure chest in the room. The government becomes the weapon to wield against your rivals. In the end, you’ll find the chest empty, and more than that. It just got smaller.
Now you end up like North Korea. What rich person – you know, the guy or gal who made all those jobs possible in the first place – will wait around for Bernie Sanders, et al, to confiscate their gains? The Sanders crowd will only be able to do it once. The next year, the successful are gone –- along with the jobs.
The UK called it the “brain drain” of the 50’s, 60’s and 70’s. Many talented Brits escaped their country’s King Kong taxman by fleeing to the US. The Beatles even made a song about it (George Harrison’s “Taxman”). Nancy Pelosi and company want to replicate the Labor Party’s economic reign of terror.
For Trump’s America, the proof is in the pudding. CBO numbers on the post-Republican tax cut economy are out. The tax cuts are a financial winner; unemployment is at historic lows (for all of the Democrats’ favorite identities); GDP is growing faster than Paul Krugman’s reputation is declining; wages are rising; and corporate profits are bountiful enough to demand more workers – i.e., more jobs and higher pay – and pay more lucrative dividends. Either way, it all adds up to an economic renaissance.
It’s the same playbook of the 1946/1948 Republican Congresses, JFK, and Reagan. The only response of the Democrats is the caterwauling about the filthy rich, with their emphasis on “filthy”. They deserve to be relegated to the place that used to be reserved for the psychotics, but, today, congregate in the tent cities of the Dems’ strongholds in the LA-to-Seattle corridor.
RogerG