Bill Foster believes in a fact-based debate on achieving economic growth, and the starting point must be to evaluate what has worked in the past and what has not. The last three presidents (Clinton, Bush, Obama) took office with strong majorities in Congress that enabled them to put in place the policies that they believed would result in strong economic growth.
The results are in, and what does the data say?
Democrats and Republicans both agree on the importance of economic growth to our nation’s future, but they disagree on how to best achieve that growth.
Democrats believe that their policies are pro-growth, because:
- Sensible regulation by Democrats makes the U.S. a safer place to invest and grow businesses, while under Republican deregulation, businesses tend to run amok and wreck the economy.
- Democrats believe that tax breaks and policies that benefit the middle class will do more to stimulate consumer demand and drive business growth. Republicans favor additional tax breaks for those already wealthy. This increases government debt but does not increase economic growth since very little of the money from those tax breaks for the wealthy is spent in the local economy — and an increasing fraction of it is simply invested in offshore.
- Long term investments in infrastructure, education, and research are essential to the economic growth of our country, even if it means increasing tax rates on the wealthy.
- Historically, fiscally responsible policies by Democrats have reduced government borrowing costs and business uncertainty, whereas fiscally irresponsible Republican policies have done the opposite.
- Democrats believe that foreign wars are a drain on our economy and must be entered into with great caution. Military spending must be limited to systems actually needed by the Pentagon, and spending increases must be paid for by corresponding tax increases.
Republicans insist that their policies are “Pro-Growth”, because:
- Republican believe that deregulation makes U.S. business more competitive in the short run, even if it increases the risk of environmental poisoning and total financial collapse.
- Long term investments in infrastructure, education, and research are unaffordable without tax increases and should therefore be cut to maximize economic growth.
- Republican tax cuts, especially for those already wealthy, will pay for themselves via increased investment in businesses and job-creating economic activities.
- Increases in military spending do not have to be accompanied by corresponding tax increases, because of the economic activity associated with military procurements.
As a scientist, Bill Foster looks at the facts. The last three presidents (Clinton, Bush, Obama) took office with strong majorities in Congress that enabled them to put in place the policies that they believed would result in strong economic growth. Despite political opposition, these policies were kept in place for the duration of each presidency. The results speak for themselves:
The facts are clear:
- Democratic policies produce consistently stronger economic growth, and
- Republican policies drove us into debt and wrecked our economy.