ARRA News Service
ARRA News Service facebook page  
News for social, fiscal & national security conservatives who believe in God, family & the USA. Upholding the rights granted by God & guaranteed by the U.S. Constitution, traditional family values, "republican" principles / ideals, transparent & limited "smaller" government, free markets, lower taxes, due process of law, liberty & individual freedom. All content approval rests with the ARRA News Service Editor. Opinions are those of the authors. While varied positions are reported, beliefs & principles remain fixed. No revenue is generated for or by this site - no paid ads accepted - no payments for articles. Fair Use doctrine is posted & used.
Editor/Founder: Bill Smith, Ph.D. [aka: OzarkGuru & 2010 AFP National Blogger of the Year]
Contact: (Pub. Since July, 2006)
    Home Page

One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors. -- Plato (429-347 BC)

Sunday, November 22, 2015

Bernie Sanders Says He Won't Raise Your Taxes Above Eisenhower's 90% Rate; Don't Expect A JFK Either

by Ralph Benko, Contributing Author: One important fact emerged from the second Democratic presidential debate. CBS, which sponsored it, headlined it as Democratic debate shows differences on foreign policy, Wall Street. This hypes the differences, while this snoozefest actually was more notable for the similarities between the candidates.

Washington Post political Bigfeet Dan Balz and Philip Rucker concluded that the latest Democratic presidential debate “appeared unlikely to change the overall shape of a nomination battle that has moved back in Clinton’s direction in recent weeks.” That’s true. All three candidates were singing variations from the same hymnal: fairness. No game changers here.

There, understandably, was a last-minute pivot to address, at the fore, national security in the wake of the Paris terrorist attacks, presumably coordinated by those attempting restoration of the Imperial Caliphate (a more precise characterization of the West’s adversaries than “fanatical Islamists”). All of the candidates agreed that something must be done about terrorism, in general, and ISIS, in particular.

None provided a particularly compelling plan. Nor, as yet, have the Republicans.

Of much greater interest was the longer debate segment on the economy. Jobs and the economy remain at the forefront of the voters’ concern. Let the games begin.

There are two core elements to the American Dream. One element has to do with our interests: prosperity. The other has to do with our values: fairness. The American Dream is one of equitable prosperity, a climate in which all can fairly prosper through talent, enterprise, and hard work. (The consensus favors a decent social safety net beneath us, something which even the ur-libertarian Hayek supported.)

Both parties agree that the American Dream, if not dead, is in deep hibernation. The economy has been off track for around 15 years. Each party has a profoundly different emphasis on how to re-awaken it.

This election is shaking out very neatly between the parties according to their core DNA. The Republicans, at root the party of capital, have staked out the theme of restoring prosperity as their turf. The Democrats, at root the party of labor, have staked out restoring fairness. Neither is wrong. Both are incomplete. Each of the candidates is proposing somewhat different flavors of how to achieve the goal.

Each of the candidates has embraced his or her party’s prevailing theme. All of the candidates present more or less radical, and more or less credible (and more radical can, at least potentially, be more credible), proposals as to how to achieve the respective thematic goal: prosperity or fairness. Prosperity and fairness are complementary, not at all contradictory, factors. Both are fundamental to the American Dream.

Hillary Clinton presented as the moderate, Bernie Sanders as the radical, and Martin O’Malley as the technocrat. Sanders stole the show with one of the most memorable lines of the night. When asked “how high would you go” in soaking the rich to pay for his expensive new proposed entitlements and federal spending plans, Sanders answered:We haven’t come up with an exact number yet. But it will not be as high as the number under Dwight D. Eisenhower which was 90%. … I’m not a socialist compared to Eisenhower.What Sanders did not mention: “Under Eisenhower’s eight years in office the economy chugged along with an average annual growth rate of 2.4 percent – less than the 4 percent average growth rate during the Truman years.” He did not mention that Kennedy defeated Ike’s vice president, Richard Nixon, by campaigning on the promise to “get America moving again.”

Enter Camelot. JFK proposed a reduction in the top marginal tax rate from 91% to 65%. LBJ delivered 70%. The economy roared, 5.4% under Kennedy, 5% under Johnson. Ike 2.0? Bernie Sanders, call your office!

Kennedy’s was the model that inspired Ronald Reagan to drop the top rate to 50%. Kennedy’s legacy inspired the bipartisan consensus thereafter to drop it to 28%. All three rate reductions worked wonders in restoring prosperity. As Kennedy said, in his 1963 message to Congress on tax reform, “Our tax system still siphons out of the private economy too large a share of personal and business purchasing power and reduces the incentive for risk, investment and effort–thereby aborting our recoveries and stifling our national growth rate.”

So Sanders is campaigning not so much against Reagan as against … John F. Kennedy. O’Malley, who hinted at restoration of the 70% rate, cannot possibly get further to the left than Sanders. Nor can he reasonably expect to get closer to the center left than Clinton.

O’Malley is forfeiting a good, and his best, bet to vault himself to the fore. O’Malley has a unique opportunity take ownership of the currently orphaned Kennedy growth wing of his party, with emphasis on “a rising tide lifts all boats.” In short, O’Malley, uniquely, has the opportunity to own both prosperity and fairness. He can do so without undercutting himself with the Democratic base.

The electorate is forward-looking and he easily can reconfigure himself as the “equitable prosperity” candidate rather than merely another flavor of fairness. Maryland is not a swing state and O’Malley thus not an obvious choice for vice president. He has little to lose. One way O’Malley could re-position himself is by taking to heart this observation by the great John Maynard Keynes — a Democratic icon — and taking on the commanding heights of monetary policy. This currently is a hot issue in the GOP race, and generating a strong tailwind for Ted Cruz. It is a sleeper issue that so far has been ignored by the Democrats.

Keynes, in The Economic Consequences of the Peace, wrote:Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.

Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.
Keynes, of course, was addressing inflation. Inflation is nowhere in evidence and does not appear even on the far horizon.

And yet, bad monetary policy also can manifest, and is manifesting, in secular stagnation. “Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become ‘profiteers,’ who are the object of the hatred of the bourgeoisie….”

O’Malley can break powerful new ground by championing high integrity monetary policy. The great progressive Democrat Grover Cleveland rode this issue right into the White House. By tackling the malpractice of the biggest bank in the world — the Federal Reserve — O’Malley even could trump Sanders’ promise to break up the big Wall Street banks.

America has been mired in economic stagnation for almost a generation. This, understandably, inflames a popular desire for redistribution. Sanders, who continues to lag (but might surge) presents an aggressive across-the-board redistributionist agenda. Clinton provides a more moderate one. O’Malley, so far, merely is providing the front runner and challenger an amen corner.

The American Dream demands that our interests, prosperity, and our values, fairness, both be served. As the respective nomination contests move along the Republican candidates with the most credible formula for equitable prosperity — currently Cruz and Rubio, but the fat lady has not yet sung — can be expected to emerge at the forefront.

Comparably, the Democratic candidate with the most credible formula for equitable prosperity, currently Clinton (with less redistribution than Sanders but a recipe less calculated to stultify prosperity), will solidify her lead. Meanwhile if Martin O’Malley stops flirting with recipes for economic stagnation he dramatically could twirl the kaleidoscope of the Democratic race.

A credible promise of equitable prosperity has been, and again could be, game changing. Equitable prosperity is electoral lightning in a bottle.
Ralph Benko is senior advisor, economics, to American Principles in Action’s Gold Standard 2012 Initiative, and a contributor to the ARRA News Service. Founder of The Prosperity Caucus, he was a member of the Jack Kemp supply-side team, served in an unrelated area as a deputy general counsel in the Reagan White House. The article which first appeared in Forbes.

Tags: Ralph Benko, Bernie Sanders, Won't Raise Your Taxes, Above Eisenhower's 90% Rate, Don't Expect, JFK To share or post to your site, click on "Post Link". Please mention / link to the ARRA News Service. and "Like" Facebook Page - Thanks!
Posted by Bill Smith at 6:34 PM - Post Link


Post a Comment

<< Home

National Debt
Don't miss anything!
Subscribe to the
ARRA News Service
It's FREE & No Ads!

You will receive a verification email
& must validate you subscribed!

You Then Receive One Email Each AM
With Prior Days Articles / Toons / More

Also, Join us at:

Recent Posts:
Personal Tweets by the editor:
Dr. Bill - OzarkGuru - @arra
#Christian Conservative; Retired USAF & Grad Professor. Constitution NRA ProLife schoolchoice fairtax - Editor ARRA NEWS SERVICE. THANKS FOR FOLLOWING!

Action Links!
Arkansas State Senators
AR State Representatives
Arkansas Governor Office
Arkansas Attorney General
Bankrupting America
US House of Representatives
US Senators
Family Research Council
Sunshine Review

Facebook Accts - Dr. Bill Smith
ARRA News Service
Arkansans Against Big Government
Alley-White Am. Legion #52
Catholics & Protestants United Against Discrimination
End Taxpayer Funding of NPR
Overturn Roe V. Wade
Prolife Soldiers
Project Wildfire 4 Life
Republican Liberty Caucus of Arkansas
The Gold Standard
US Atty Gen Loretta Lynch, aka Eric Holder, Must Go
Veterans for Sarah Palin
Why Vote for Hillary (Satire)
FB Groups:
Arkansas For Sarah Palin
Arkansas Conservative Caucus
Arkansas County Tea Party
Arkansans' Discussion Group on National Issues
Blogs for Borders
Conservative Solutions
Conservative Voices
Defend Marriage -- Arkansas
FairTax Nation
Arkansas for FairTax
Friends of the TEA Party in Arkansas
Freedom Roundtable
Let's Mine AR Lignite NOW!
Pro-Life Rocks - Arkansas
Republican Network
Republican Liberty Caucus of AR
Reject the U.N.


Request Via
Article Comment

Links to ARRA News
A Patriotic Nurse
Agora Associates
a12iggymom's Blog
America, You Asked For It!
Americans for a Free Republic
America's Best Choice
America's Whatchtower
An Ol’ Broad’s Ramblings
ARRA Twitter
As A Matter of Fact
As The Crackerhead Crumbles
Baaad Media!
Black & Right
Blogs For Borders
Blogs for Palin
Blow the Trumpet Ministry
Boot Berryism
Cap'n Bob & the Damsel
Chicago Ray Report
Chuck Baldwin - links
Citizen Pamphleteer
Common Cents
Conservative Hideout
Conservative Observer AZ
Conservative Voices
Conway Real Deal
Defeat Obama's Agenda
Diana's Corner
eGOP News
Florida Pundit
Franklin Online Outreach
Freedom For US Now
Free Zone Media Center
For God and Liberty
Garland County Republicans
Greater Fitchburg For Life
Guns and Religion
Lasting Liberty Blog
Liberal Isn't Amy
Liberty's Lifeline
Maggie's Notebook
Marathon Pundit
Monkey in the Middle
NASA Satellites
No Runny Eggs
Okie Campaigns
Our Voices Arkansas
Patriot's Corner
Publius Forum
Randy's Roundtable
Real Debate Wisconsin
Religion and Morality
Right on Issues that Matter
Right Reason
Rocking on the Right Side
Saber Point
Saline Watchdog
Secure Arkansas
Sentry Journal
Sultan Knish
Stop Obama Satire & Cartoons
The Arkansas Patriot
The Audacity of Logic
The Blue Eye View
The Bobo Files
The Born Again Americans
TEA Party Cartoons
The Conservative Citizen
The Foxhole | Unapologetic Patriot
The Liberty Republican
The Lid
The Looking Spoon
The Maritime Sentry
The O Word
The Path to Tyranny Blog
The Real Polichick
Truth About Obamacare
Twitter @ARRA
Warning Signs
Women's Prayer & Action

Editor's Managed Twitter Accounts
Twitter Dr. Bill Smith @arra
Twitter Arkansas @GOPNetwork
Twitter @BootBerryism
Twitter @SovereignAllies
Twitter @FairTaxNation

Editor's Recommended Orgs
Accuracy in Media (AIM)
American Committment
American Culture & Faith Institute
American Enterprise Institute
American Family Business Institute
Americans for Limited Government
Americans for Prosperity
Americans for Tax Reform
American Security Council Fdn
AR Faith & Ethics Council
Arkansas Policy Foundation
Ayn Rand Institute
Bill of Rights Institute
Campaign for Working Families
Center for Individual Freedom
Center for Immigration Studies
Center for Just Society
Center for Freedom & Prosperity
Citizens Against Gov't Waste
Citizens in Charge Foundstion
Coalition for the Future American Worker
Competitive Enterprise Institute
Concerned Veterans for America
Concerned Women for America
Declaration of Am. Renewal
Eagle Forum
Family Research Council
Family Security Matters
Franklin Center for Gov't & Public Integrity
Freedom Works
Gingrich Productions
Global Incident Map
Great Americans
Gold Standard 2012 Project
Gun Owners of America (GOA)
Heritage Action for America
David Horowitz Freedom Center
Institute For Justice
Institute for Truth in Accounting
Intercollegiate Studies Institute
Judicial Watch
Less Government
Media Reseach Center
National Center for Policy Analysis
National Right To Work Foundation
National Rifle Association (NRA)
National Rifle Association (NRA-ILA)
News Busters
O'Bluejacket's Patriotic Flicks
Open Secrets
Presidential Prayer Team
Religious Freedom Coalition
Renew America
Ron Paul Institute
State Policy Network
Tax Foundation
Tax Policy Center
The Club for Growth
The Federalist
The Gold Standard Now
The Heritage Foundation
The Leadership Institute
Union Facts

Blogs For Borders

Reject the United Nations

Adopt Our Troops in Prayer

Thousands of Deadly Islamic Terror Attacks Since 9/11

FairTax Nation on FaceBook
Friends of Israel - Stand with Israel
Blog Feeds
Syndicated - Get the ARRA News Service feed Syndicated!
ARRA Blog Feed

Add to Google Reader or Homepage

Add to The Free Dictionary

Powered by Blogger

  • How To Exchange Links!
  • Comments by contributing authors or other sources do not necessarily reflect the position the editor, other contributing authors, sources, readers, or commenters. No contributors, or editors are paid for articles, images, cartoons, etc. While having reported on and promoting the beliefs associated with the ARRA, this blog/site is not controlled by nor funded by the ARRA. This site/blog does not advertise for money or services nor does it solicit funding for its support.
  • Fair Use: This site/blog may contain copyrighted material the use of which has not been specifically authorized by the copyright owner. Such material is made available to advance understanding of political, human rights, economic, democracy, and social justice issues, etc. This constitutes a 'fair use' of such copyrighted material as provided for in section Title 17 U.S.C. Section 107 of the US Copyright Law. Per said section, the material on this site/blog is distributed without profit to readers to view for the expressed purpose of viewing the included information for research, educational, or satirical purposes. Any person/entity seeking to use copyrighted material shared on this site/blog for purposes that go beyond "fair use," must obtain permission from the copyright owner.
  • © 2006 - 2017 ARRA News Service
Creative Commons License
Creative Commons Attribution Noncommercial Share Alike 3.0 Unported License.