They didn’t call Ronald Reagan “The Great Communicator” just because he knew how to deliver a speech. The fact is, he—more than any president in recent memory—knew how to bring a complex idea to life in ways the public wouldn’t just understand but would embrace.
Sometimes this required some simplifications the media—which continually tried to prove Reagan a dunce—used to distort what he was saying. That’s not to say he didn’t get a few things wrong; every president does. On the big things, however, like the importance of economic growth and how to get it, he was very, very right.
Growth matters. The Republicans who followed Reagan into the White House either didn’t get it or couldn’t explain it. That left the door open for the media and progressives to slander and then dismiss pro-growth measures as deficit-enhancing tax cuts for the wealthy that produced greater income inequality.
The Republicans who tried but failed to follow Reagan into the White House—Bob Dole, John McCain, Mitt Romney—didn’t make it in part because they didn’t understand the need to explain how growth happens. They never communicated how the right kinds of tax cuts and deregulatory measures would cause economic expansion, leading to rising wages, more jobs and new businesses, making everyone better off while eventually bringing into the U.S. treasury as much revenue or more as the liberals claimed the tax cuts “cost.”
Reagan honed his ability to explain the politics and economics of growth to working Americans over years. As a spokesman for General Electric, he went around the country to the company’s various plants and facilities to talk to employees about the virtues of the free market system. More recent Republicans’ comparative inarticulateness may in part explain why the country appears to be embracing the soft socialism Joe Biden and his congressional colleagues are offering.
Pollster Scott Rasmussen just released a national survey of 1,200 registered voters that found 35 percent of them saying economic fairness was more important than economic growth. The fact that just over a third of the country thinks equality of outcomes deserves more focus than equality of opportunity—a key component of any pro-growth policy—should alarm Republican leaders and growth hawks.
Even when the numbers are broken down by party, the results are disheartening. According to Rasmussen, a third of Republicans now believe fairness is more important than growth. In the Reagan years and throughout the Gingrich era, which saw the first balanced budget in decades alongside a period of continued growth, a number that high would have been inconceivable.
It’s not that the GOP doesn’t believe in fairness. The free market is the fairest system ever conceived for the exchange of goods and services between willing sellers and willing buyers. It’s that they reject—or ought to, anyway—the idea that no matter where anyone starts, we all need to end up in the same place.
It’s really that kind of outcome that’s the most unfair. It presumes that no matter how creative a person is, how hard they work, how good their innovation might be or even how lucky they are, no one should do any better than their neighbor. Identical per capita income for every family—that’s the ticket.
Except it’s not. The progressive politicians’ response to the COVID crisis—shutting down the marketplace state by state while the federal government borrows trillions, inflating the debt while doing nothing to stimulate the economy—leads to disaster. It won’t take too much more of this before the United States starts to resemble Greece, and not in a good way. We’ll be comparatively lucky if it stops there, without the U.S. sliding all the way down into the same space as Venezuela.
There is a bright spot in Rasmussen’s data. “Those respondents who believe focusing on economic growth is the most important rated cutting spending and taxes as the best prescriptions” for doing so, as did those “who would rather focus on economic fairness.” Both sides agree on what needs to be done and, at least by implication, reject the Biden White House’s tax-and-spend plans. This means the growth wing of the GOP has a chance to carry the day—if it’s smart and can find leaders who can explain what is going on in ways the public can understand, even through the filter of the elite media and the opposition’s critique.
Washington, DC — The race to the 5G generation of telecommunications technology is on. By 2035 it will be responsible for more than $13 trillion in global economic output.
The nation getting the best technology to market the quickest will enjoy an incredible competitive advantage. For America to produce the first fully functional 5G network involves many things that must happen. The development of the hardware that will make things happen and the writing of software to control it all is only part. Anything operating wirelessly, as many of these new applications will, needs enough clean spectrum to carry the load.
Without it, the U.S. will end behind the Chinese and others who are already clearing the midrange C-Band to deploy 5G. In the U.S, that space is occupied, allocated to satellite companies who are using it, putting the issue before the U.S. Federal Communications Commission, which has regulatory authority over the spectrum.
The chairman of the FCC, Ajit Pai, has been a real leader in the campaign to keep the government from doing anything stupid that would slow the evolution of the Internet or hamper the technological progress needed to support it. Late last week, he announced his proposal for dealing with the C-Band issue so the folks prepared to use it for the next level of what cyberspace can do can get it, and the folks who have it can be compensated adequately.
To remove the potential roadblock to progress, the companies who’ve already made investments in the C-Band space need to be compensated fairly and have their relocation costs addressed. We’re talking of course about a communal public asset regulated by the government, but that doesn’t mean the feds can just take it back because it wants it for something else. “It’s only fair,” Pai said while revealing his plan, “that every single reasonable cost should be covered. So, under my draft rules, the winning bidders in the C-band auction would be required to reimburse satellite operators for their reasonable relocation costs.”
Some in Congress are also trying to make sure compensation happens, but on the cheap. Louisiana GOP Sen. John Kennedy’s SMART Act that would delay an FCC auction and, unintentionally to be sure, give the Chinese time to take a great leap forward on 5G faster than America can. His bill allocates just $5 billion in reimbursements to the companies involved as incentive to relocate to another part of the spectrum and grants them no more than a $1 billion share in the revenues the auction is sure to generate.
As an incentive to cooperate rather than sue, that’s not much. Even Kennedy admits the auction could generate $60 billion in revenues — and that’s probably a low estimate. A $5 or $6 billion buy-out of a 40-year, $50 billion investment in building out C-Band based businesses that currently provide content to 120 million U.S. households just won’t cut it.
Some folks say the push for a more realistic incentive is merely crony capitalism. That’s not so, and the people saying it is are trying to manipulate the opinions of President Donald Trump and his supporters. The SMART Act undermines U.S. technology innovation and investment because it signals to the marketplace that private companies cannot be sure their capital spending in government-regulated space is safe from federal confiscation sometime in the future if needs change or political winds shift.
The commission’s scheduled to take up Chairman Pai’s proposal on February 28. So far, under his leadership, it’s been doing a lot of good things. The Pai-led FCC has been protecting a huge percentage of the economic growth that’s occurred in the U.S. economy over the last several years. And we’ll all benefit if his colleagues stand with him regarding what’s to happen with the C-Band spectrum. Trillions in future economic growth are at stake. He’s found a way to thread the needle and keep everyone, the people to whom it is licensed and the people who want it, happy. If his proposal fails, or of the Kennedy plan is adopted by Congress, the whole thing almost surely ends up in litigation for years as someone else, probably the Chinese, take control of the world’s telecommunications sector.
We don’t have forever. We must move fast. We need the private sector to lead the way to U.S. dominance in 5G. The federal government can’t do it fast enough to beat the Chinese. President Trump and Chairman Pai need to offer a fair deal with real incentives from which the taxpayers will ultimately benefit because of the jobs and wealth a 5G global network led by America will produce for us.
Think of it as keeping America’s telecom sector great!
Bull Market: Amid all the political noise in Washington, a milestone was passed Wednesday, one you may not have noticed. The bull market for stocks has now become the longest since World War II. Can it continue? That depends on federal policies.
We’re grateful to CNBC for actually counting the days: 3,453, starting on March 9, 2009. That’s a long time — 9.46 years to be exact.
Yes, it’s been a bull for the record books. Even so, we would note that the bull hasn’t been without tests to its longevity. And some might even deny it’s been a bull market all this time.
One common definition of a bear market is a decline of a major stock index by 20% or more from its previous all-time high, or 52-week high. Well, way back in 2011, the market was actually off more than 20% from its previous high, but on an intraday basis. So, technically, some think the bull ended. But it snapped back by the end of the day’s trading, so others say no.
But however you look at it, the fact is that the market has been on a long-term tear. The bull run began Continue reading
Change: A just-released IBD/TIPP Poll shows big gains in key sentiment indicators. Given the pervasive negativity in the media these days, you might doubt these positive polling numbers. If so, have you looked at the economy lately?
When it comes to President Trump and the national mood, something seems to have happened in recent weeks, as shown by our IBD/TIPP Poll of 900 people taken from July 26 to August 2. Keep in mind that anything over 50 is optimistic; under 50, pessimistic.
Start with our Presidential Leadership Index, which jumped 3.2% in August to 45.7, the highest level since President Trump’s first full month in office.
Equally important, the Direction of the Country Index, which gauges how Americans feel about our nation’s current course, surged 13% to 50.1 in August. That’s the highest level since 2005.
By Adam Mill • The Federalist
Recently, Jesse Kelly wrote a worthy article forecasting the United States’ decline and eventual suffocation in the quicksand of socialism. He correctly notes that as government gets bigger, freedom must get smaller.
Kelly clearly fears a socialist America will follow the failures of Greece, Venezuela, and every other country that has followed a welfare state model to its logical conclusion. While he is absolutely right that economic failure and socialism are inexorably related, he is not correct that the United States is on an unstoppable path to this oblivion.
Take cheer, Kelly: we have reason to be optimistic as a result of President Trump’s brief but dazzling experiment with cutting taxes and regulation. While government is growing, it’s not growing fast enough to crowd-out all freedom. One byproduct of the Trump boom is that economic growth is actually outpacing growth in government spending. The government’s share of gross domestic product has fallen to Continue reading
By Stephen Moore • Investor’s Business Daily
T.S. Eliot famously wrote that “April is the cruelest month,” but when it comes to America’s fiscal picture, nothing could be further from the truth about this April. The latest government numbers confirm that last month was a blockbuster for growth, federal revenues, and deficit reduction.
One of the key principles of Trumponomics is that faster economic growth can help solve a multitude of other social and economic problems – from poverty, to inner-city decline, to lowering the national debt.
We’re not quite at a sustained elevated growth rate of 3% yet, but the latest economy snapshot tells us we are knocking on the door. The growth rate over the last four quarters came in at 2.9% — which Continue reading
By Ali Meyer • Washington Free Beacon
The Tax Cuts and Jobs Act, which was signed into law by President Donald Trump in December, is projected to push GDP growth higher than previously expected. Growth is forecast to rise to 2.7 percent in 2018, according to a report from the International Monetary Fund.
The changes from tax reform are expected to add to economic growth through 2020 so real GDP will be roughly 1.2 percent higher than it would be without tax reform.
The IMF previously projected that GDP would increase by 2.3 percent in 2018 and 1.9 percent in 2019. The group now projects GDP will increase by 2.7 percent in 2018 and by 2.5 percent in 2019.
“The growth forecast for the United States has been revised up given stronger than expected activity in 2017, higher projected external demand, and the expected macroeconomic impact of the tax reform, in particular the Continue reading
Trump should set a goal: fix the business climate so a million Americans a year can start companies.
By Carl J Schramm • Wall Street Journal
This week more than 160 countries are celebrating Global Entrepreneurship Week. The Kauffman Foundation, which I once led, created this event eight years ago to encourage other nations to follow the American tradition of bottom-up economic success. Yet this example has been less powerful in recent years, as American entrepreneurship has waned. Fortunately, President-elect Donald Trump has plenty of options if he wants to resurrect America’s startup economy.
Consider the economic situation that the president-elect is inheriting. Despite the addition of 161,000 jobs in October, the labor-force participation rate fell to its second lowest level in nearly 40 years, according to the St. Louis Federal Reserve. More people have joined the ranks of the chronically unemployed, slipping into poverty at alarming rates as their skills decay and dependency on public assistance grows. Considering population growth, America needs at least 325,000 new jobs every month to stanch the growing numbers of discouraged workers, according to the Bureau of Labor Statistics. Continue reading
by Steven Horwitz • Foundation for Economic Education
Critics of liberalism and the market economy have made a long-standing habit of inventing terms we would never use to describe ourselves. The most common of these is “neo-liberal” or “neo-liberalism,” which appears to mean whatever the critics wish it to mean to describe ideas they don’t like. To the extent the terms have clear definitions, they certainly don’t align with the actual views of defenders of markets and liberal society.
Economists have never used that term to describe their views. Another related term is “trickle-down economics.” People who argue for tax cuts, less government spending, and more freedom for people to produce and trade what they think is valuable are often accused of supporting something called “trickle-down economics.” It’s hard to pin down exactly what that term means, but it seems to be something like the following: “those free market folks believe that if you give tax cuts or subsidies to rich people, the wealth they acquire will (somehow) ‘trickle down’ to the poor.” Continue reading
By Michael J. Coren • Quartz
We’re supposedly living in the age of startups when people can create new businesses, enrich themselves, and employ their fellow Americans. That narrative, like much economic optimism these days, is now mostly a tale for coastal cities, and a tenuous one at best.
Fewer new businesses were created in the last five years in the US than any period since at least 1980, according to a new analysis (pdf) by the Economic Innovation Group (EIG), a bipartisan advocacy group founded by the Silicon Valley entrepreneur Sean Parker and others. Businesses that did form are also far more concentrated than ever before: just 20 counties accounted for half of the country’s total new businesses. All of them were in large metro areas.
America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.
by Anthony B. Kim • Daily Signal
According to the 2016 Index of Economic Freedom, an annual publication by The Heritage Foundation, America’s economic freedom has tumbled. With losses of economic freedom in eight of the past nine years, the U.S. has tied its worst score ever, wiping out a decade of progress.
The U.S. has fallen from the 6th freest economy in the world, when President Barack Obama took office, to 11th place in 2016. America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts. Continue reading
Americans are increasingly foregoing paychecks due to disability, school or retirement
by Kasia Klimasinska
How come more people are retiring in their early 20s? Why are middle-age men becoming stay-at-home dads? What’s keeping women out of the workforce other than illness, kids or school?
Those are some of the questions raised in a new Bureau of Labor Statistics report that shows changes over the past decade in why people stay out of the labor force. Finding answers is key for the Federal Reserve as it maps the contours of a job market that’s becoming harder to predict with the aging of the baby boomers and shifting household priorities.
Here’s what the bureau found, broadly: Thirty-five percent of the U.S. population wasn’t in the labor force in 2014, up from 31.3 percent a decade earlier. (You’re considered out of the workforce if you don’t have a job and aren’t looking for one. That’s distinct from the official unemployment rate, which tracks those out of work who are actively job hunting.)
Drilling down into the numbers reveals more about the shifts in the reasons some people forego a paycheck. In all age groups, for instance, more people cited retirement as the reason for being out of the labor force, and it wasn’t just older people. Continue reading