Spinning In The Web
The past few days have been busy. My daughter graduated from Northwestern Law. She took a job with Kirkland and Ellis in Fund Formation if any of you are thinking of starting a fund. We drove up to open our cabin in Grand Marais, Minnesota, and have been here since. The black flies came out in force yesterday. Uff da.
I haven’t been on the web much, but noticed the tenor of many articles spinning the proposed Biden Tax Increase as “positive for growth”. They are basing their opinion on Bill Clinton. Clinton raised taxes in the first two years of his term after the prior President George Bush (“Read my lips, no new taxes”) had raised taxes. Clinton also tried to socialize the medical industry which crushed medical stocks.
We had some growth. But, not from 1992-1994. Interestingly, Clinton was elected because Bush raised taxes after the Reagan boom and created a mini-recession.
But, we didn’t have growth after the tax increases. It was the “Contract With America” and new House Speaker Newt Gingrich who created gridlock in government that initialized growth. Once there was gridlock, Clinton concentrated on expanding the regulatory state since he controlled the Executive Branch.
William Galston, the liberal columnist in the Wall Street Journal went so far as to say, “the onus” on the tax cutters to prove that tax hikes don’t limit growth.
I disagree. Strongly.
Name one thing in the last twenty years, even the last fifty, that government has created from (Read more...)