Will Democrats ever give credit to tax cuts?
ByThe job numbers for the month of December are out and once again the “greatest story never told”, to steal a line from Larry Kudlow, continues to live on.
The report from the Labor Department showed the U.S. added another 165,000 jobs in December compared to a forecast of only 100,000. Wages, the hot issue for Democrats, jumped 4.2% over last year, which was double the rate of inflation during the same period.
Another interesting note about the survey is economist claim that the problem with our current job market is not growth but instead not enough skilled workers. Even New York, for those that say it’s in “shambles”, is having problems filling skilled jobs. The recent Federal Reserve Beige Book for the district of New York stated:
“A major employment agency reports that the labor market has grown increasingly tight, and that recruiters are using referral bonuses more aggressively to find skilled workers; moreover, firms are reported to be making increasingly widespread conversions from temporary to permanent positions. Hiring is reported to be particularly strong in the legal services and banking industries; a rebound in demand is also noted for workers in public relations and advertising. A contact at a financial industry association indicates that business activity, revenues and profits have strengthened in recent months, and that hiring activity has been solid.”
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2 Comments
January 5th, 2007 at 7:47 pm
They won’t because the tax cuts are bankrupting our country and we’ve had economies do just as well and much more equitable growth on all levels when tax levels were at Clinton levels. Tax cuts aren’t bad and do spur growth both Bush’s are seen as slanted to the rich, extreme, fiscally irresponsible and ideologically driven. That’s why he won’t ever get credit.
January 5th, 2007 at 8:32 pm
What’s irresponsible is to claim that the “tax cuts are bankrupting our country”. The fact that you would even make that statement shows the typical emotional rant that Democrats have become so accustomed too. If the U.S. economy is on the verge of bankruptcy then every developing economy in the world must be in complete anarchy. You should send Chirac of France your “tax cuts are bankrupting our country” memo that you got from your last Pelosi fundraiser because he just announced that he wants to cut the tax rates for corporations in France from 30 to 20%.
Further to claim that the economy did “just as well” under Clinton is either deliberately ignoring the facts or a failure to understand them. The Clinton economy was an inefficient bubble created by hype and a surge of money without any fundamental support. Sure it created jobs but as many economists predicted those quickly disappeared as the market realized what they owned were companies based on dreams and balance sheets that would make my son’s lemonade stand look like a Fortune 500 company.
Today’s economy is the complete opposite as our markets are currently supported by valuations efficiently reflective of their current growth. As of the end of the 3rd Quarter the PE ratio on the S&P 500 was half what is was back in March of 2000, the top of the Clinton bubble, despite it nearing all time highs. The trillions of dollars in private equity that continues to buy public companies daily to take them private, is all the proof you need to know companies and our economy is on solid footing.
Finally the only reason Clinton enjoyed a surplus for a couple years during his Presidency was because he cut military spending in half, something that is not sustainable in today’s global war on terror.