04/10/2017

Has Middle Class America Been Fleeced?

Hunter Lewis, Against Crony Capitalism

Noah Smith, writing in Bloomberg, says that it has indeed been fleeced by our national economic policies. We agree. But which policies have been responsible?

Smith mentions and immediately dismisses trade, immigration, economic regulation, and welfare policies. The real villain in his view is an alleged turn toward managing the economy on free market lines: “Your prosperity was taken by the very people who promised to ensure and enhance it. The decades from 1980 through 2008 were the age of neoliberalism — the ideology of the free market.”

This is a story that we hear more and more. Neoliberals, the favorite new epithet on the left for free market exponents, have ruled the roost for decades ( note how the Obama administration is simply ignored in the preceding quote), and have left the poor and middle class far worse off than they were.

The truth is that the Bush-Clinton-Bush-Obama era had much in common, and it was not free market principles. It was an era of unrestrained crony capitalism, in which special interests formed stronger and stronger alliances with government in order to secure economic monopolies and other privileges.

It was also, not coincidentally, an era of repeated boom and bust, as the Federal Reserve and other central banks created immense amounts of new money to keep the crony capitalist game going. The Fed did not create all the new money to help the poor and the middle class. They did it primarily to support the government debt machine, which they worried was on the verge of collapse in 2008. The result is that government debt has now doubled in the few years since then.

Read full article



You May Also Like:

An Honest Comey Interview Kimberley A. Strassel, The Wall Street Journal

Democrats Are Getting Desperate As Mueller Stalls Michael Goodwin, New York Post

The $173 Million IRS Tech Team #Failed Adam Andrzejewski, Forbes.com

Melania Trump Brought Two Special Guests In Honor Of Barbara Bush To Her Funeral Jenni Fink, Independent Journal Review

The Most Dangerous Democrat In America Michael Walsh, PJ Media

Eric Holder For Prison, Not President Daniel John Sobieski, American Thinker

18 Spectacularly Wrong Predictions Made Around The Time Of The First Earth Day In 1970. Expect More This Year. Mark J. Perry, Foundation for Economic Education

Gorsuch Strikes A Blow Against The Administrative State George Will, National Review

The Left’s Latest Creepy, Orwellian Education Tactic Karen Efrem and Jane Robbins, American Spectator

This Is How The Government Will Spend Your Taxes In 2018 Brian Riedl, New York Post

Visualizing The Pension Time Bomb: $400 Trillion By 2050 Tyler Durden, ZeroHedge

In Defense Of Cash William J. Luther, Reason

#BoycottYeti Movement Erupts After Cooler Maker Ditches NRA Foundation AWR Hawkins, Breitbart News

Hammer Time: Author Brad Thor Vows 2020 Challenge To Trump Sarah Rumpf, RedState

Newly Revealed Government Statistics Hidden From Public Dismantle Liberal Gun Control Narrative Chris Enloe, TheBlaze

Chappaquiddick Rescues The Truth: Kopechne Needn’t Have Died Nathaniel Peters, Library of Law and Liberty

For More go to the Home Page >>>

Join Our Email List



section

Bookshelf

FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference

section

In Search Of History

The Reagan Tax Cuts Worked

Thanks to "bracket creep," the inflation of the 1970s pushed millions of taxpayers into higher tax brackets even though their inflation-adjusted incomes were not rising. To help offset this tax increase and also to improve incentives to work, save, and invest, President Reagan proposed sweeping tax rate reductions during the 1980s. What happened? Total tax revenues climbed by 99.4 percent during the 1980s, and the results are even more impressive when looking at what happened to personal income tax revenues. Once the economy received an unambiguous tax cut in January 1983, income tax revenues climbed dramatically, increasing by more than 54 percent by 1989 (28 percent after adjusting for inflation).

 

-- Daniel J. Mitchell,

Shadow Stats Snapshot


FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.07%
    FreeMarket Central Shadow Stats: 21.7%
  • Inflation:
    FreeMarket Central March Year-to-Year: 2.21% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.9%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]

section