I thought the John Kerry train wreck couldn't get worse but there it was, spattered across the Wall Street Journal. Should I drink my morning coffee or simply drown myself in it?
Kerry is actually trying to convince the American public he is CEO material. "As I travel across this country, I meet store owners, stock traders, factory foremen and optimistic entrepreneurs. Their experiences may be different, but they all agree that America can do better under an administration that is better for business" Kerry professes. He compares stock traders with store owners? And yes Mr. Kerry, one of the criteria for entrepreneurs is "optimism." The top liberal in congress says he is better for business. I also still believe in the tooth fairy.
Kerry is back to "fuzzy math" quoting statistics of lost jobs without mentioning new jobs, with the fact these new jobs are actually paying more. Income is up but Kerry only discusses the expense side of the income statement. Unemployment is the lowest since 1996 and adjusting for inflation it is gauging towards full employment. Kerry loves to discuss the Great Depression and Herbert Hoover, Vietnam, and his famous on again, off again trivial pursuit.
"Today, American companies are investing less and exporting less than they were in 2000 -- the first time investment and exports have been down during any presidential term in over 70 years. At the same time, our trade deficit has grown to more than 5% of the economy for the first time ever, a troublesome and unsustainable development."
Time for a reality check! With the Bush tax cuts, investment by small business is up, the economy is steadily growing at 3.3% and adjusting for inflation, the trade deficit is not the worst ever. Kerry and Edwards are using the Great Depression to scare votes out of the unassuming public. Small Business, who Kerry wishes to tax, are the wheels of the economic vehicle. Small Business creates new jobs and sustains economic growth, yet Kerry is proposing increases in spending, tax increases on the percentage of Americans who produce jobs. When more money is invested in more productive economic activities, there is more output and more jobs are created while increasing output. The Kerry campaign believes in "Trickle Down Economics", taxing the "Rich" and paying the poor, which is revisiting welfare reform in reverse and not investing in the economic future.
Kerry is comparing the war on terror to previous administrations. Not once does he mention the military downturn created by the Clinton administration, which left the American defensive capabilities vulnerable. Nor does Kerry mention the huge costs of rebuilding our military (which was downsized by 285,000 by Clinton/Gore) and the addition of Homeland Security. The sudden attack on the American homeland invoked billions in economic suffering, yet the economy has steadily recovered. President George W. Bush came into office inheriting an economic downturn that began at the end of the Clinton administration. Then the September 11, 2001, terrorist attacks and the reactions to them disrupted the economy.
Kerry likes to use the deficit as a scare tactic but his facts and interpretation of economics doesn't add up. THE FEDERAL DEFICIT, measures the difference between how much money the government takes in and how much it spends. Most economists say deficits aren't necessarily a bad thing. "When the economy is underemployed, government deficit spending helps put people back to work to get businesses profitable and get the economy back where it's supposed to be," said Benjamin Friedman, a professor of economics at Harvard University. "At times deficits are unavoidable, notably during war." In fairness, Friedman argues fueling a deficit is dangerous business and it's difficult to grow out of huge deficits without reduced spending. The problem with Kerry's proposals are he can't pay for his increased social spending plans based on the tax increases he proposes. Taxing job creators further displaces a Kerry economic plan. However, steady economic growth does, in fact, lower deficits.
If you provide the entrepreneur with incentives (seeds, water and tools) businesses will grow the economy and create jobs. If you take away the seeds, water and tools the economy suffers, unemployment grows and further business investment dies. Kerry doesn't understand this premise, he has married twice into wealth while consistently voting for anti-military measures and voting for advanced social programs and more government control.
"I am not trying to stop all outsourcing, but as president, I will end every single incentive that encourages companies to outsource" Kerry said. (Notice the Flip-Flop in one sentence) Outsourcing U.S. service jobs abroad is probably a plus for the economy in the long run because foreign workers can do the jobs more cheaply, reducing costs for U.S. consumers and companies. Outsourcing is just a new way of doing international trade. In addition, lost jobs in Wisconsin may very well reappear in California, not in India. Outsourcing is an easy target as a political football. Many of these jobs, like low-level computer programming and call-center operators, usually have low retention and high turnover in the U.S., but in India, you can fill them with computer-science engineers who are way overqualified. Companies often can get better work from a stable, low-cost work force by going overseas. Between 1995 and 2002, annual U.S. gross domestic product grew about 0.3% faster than it would have without globalization.
More "Fuzzy Math." "By rolling back the recent Bush tax cuts for families making over $200,000 per year, we can pay for health care and education" Kerry proclaims. Kerry wants to punish the entrepreneurs who create jobs and the numbers don't equal the spending proposals for social programs.
"By cutting subsidies to banks that make student loans and restoring the principle that "polluters pay," we can afford to invest in national service and new energy technologies" Kerry suggests. Kerry believes incentives are subsidies and he would cut incentives to encourage advanced edcuation while also criticizing the Bush education plan, "No Child Left Behind." But pork barrel subsidies are Kerry's best friend. Kerry wishes to increase costs of corporations who "pollute" while promising 5% tax cuts to 99% of corporations. The net effect will remove income incentives for further business growth.
"I am not waiting for next year to change the tone on fiscal discipline", Kerry exclaims. Kerry is the number one liberal in the Senate. His fiscal discipline is for military cuts and increasing social programs. He believes incentives to his union pals and taxing businesses is the best way to increase government regulation while reducing capitalistic policies. Kerry has great disdain for the corporate environment as if they are big brother and he is Robin Hood. We live under Capitalism, it's our form of democracy. The free marketplace is one of our great freedoms. Kerry proposals shift fiscal responsiblity further into the hands of big government.
In the end Mr. Kerry, you don't make Lemonade with social programs and government regulations. Please, America doesn't want to participate in your train wreck!