The Uncompromised Case for Capitalism
Ayn Rand Institute®
July 20, 2012 by Don Watkins
It’s not “Pure class warfare,” raising taxes on the rich but not the middle class. It’s because he believes (wrongly) that economic growth comes from demand, that is what he means by “Prosperity comes from a strong and growing middle class.”
As in everything else, he has it precisely backward. A strong and growing middle class comes from prosperity.
I see him as a very conventional thinker. If you want to predict his position on any issue, just ask what the mainstream position is.
I support everything that was discussed in the video, but I think Don didn’t really answer the question Allen asked him. He didn’t really explain what is the “big deal” with tax rates going back to the same levels of the Clinton era, considering that the economy was doing well at that time.
If anyone can explain that would be useful since it seems like a valid question.
He didn’t really explain what is the “big deal” with tax rates going back to the same levels of the Clinton era, considering that the economy was doing well at that time.
I can’t speak for Don, but personally I’d strongly support returning to exactly the level of government spending, regulation and economic interention of the Clinton era — which would mean, of course, the repeal/rollback of vast amounts of additional government regulation imposed since that time and a huge rollback in federal looting (spending) of productive American’s earings — and I’d be willing to accept a return to the tax rates of the time as part of the bargain. Provided, of course, that it would be understood as only a first step on the road to laissez faire capitalism.
This, of course, is not what is being proposed. Instead, Obama is evidently hoping that Americans are dumb enough to overlook everything that has changed since the Clinton era and accept the preposterously simplistic notion that tax rates that prevailed in earlier “good economic times” will promote economic growth NOW, regardless of everthing else government is doing to choke, limit, prohibit and/or punish economic activity in the present. Unfortunately, there is some basis for Obama’s hope — we’ll know come November.