The Presidential Election and The Economy: Part I

Over 45 years ago, President Kennedy, in his State of the Union address of January 14, 1963, spoke about the economy and pushed for a reduction and revision in federal income taxes.  However, in conflict with Republicans say today, Kennedy had the wisdom to understand that tax reduction was not enough to sustain the economy and told the American people so.  His tax proposal did pass Congress, but was not tilted in favor of the wealthy or Corporate America, but rather the America middle class.

 

Here are some excerpts from President Kennedy's State of the Union address which outlines the broader picture for a stable economy:

 

"America has enjoyed twenty-two months of uninterrupted economic recovery.  But recovery is not enough.  If we are to prevail in the long run, we must expand the long-run strength of our economy.  We must move along the path to a higher rate of growth and full employment.(...)

 

I do not say that a measure for tax reduction and reform is the only way to achieve these goals.  No doubt a massive increase in federal spending could also create jobs and growth-- but in today's setting, private consumers, employers, and investors should be given a full opportunity first.

 

No doubt a reduction in either individual or corporation taxes alone would be of great help--but corporations need customers and job seekers need jobs.

 

Tax reduction, alone, however, is not enough to strengthen our society, to provide opportunities for the four million americans who are born each year, to improve the lives of thirty-two million americans who live on the outskirts of poverty.  The quality of American life must keep pace with the quantity of american goods.  This country cannot afford to be materially rich and spiritually poor.

 

First we need to strengthen our nation by investing in our youth.  The future of any country which is dependent upon the will and wisdom of its citizens is damaged and irreparably damaged, whenever any of its children is not educated to the full extent of his talent, from grade school through graduate school.  Today, an estimated four out of every ten students in fifth grade will not even finish high school-- and that is a waste we cannot afford.

 

In addition there is no reason why one million young Americans, out of school and out of work, should all remain unwanted and often untrained on our city streets when their energies can be put to good use.

 

We shall be judged more by what we do at home than by what we preach abroad.  Nothing we could do to help the developing countries would help them half as much as a booming U.S. economy.  And nothing our opponents could do to encourage their own ambitions would encourage them half as much as a chronic U.S. economy.  These domestic tasks do not divert energy from our security--they provide the very foundation for freedom's survival and success."

Both parties could learn a great deal from President Kennedy's economic policies.  

 

Next Up, Part II

Another Drunk On Wall Street

Lehman Brothers Holding, an investment Bank, just this week filed the largest bankruptcy in American history.  At the same time, Merrill Lynch, the world's largest recognized brokerage, avoided the same fate with a $50 billion transaction to become part of Bank of America Corp., which has the most deposits of any U.S. bank.  This deal will create a financial giant --- just what the people need: another monopoly in the financial markets.

 

The Dow Jones average responded to this news by dropping 504 points; approximately $700 billion evaporated from retirements plans, government pension funds, and other investment portfolios, reported business writers from the Associated Press.  This is the same industry Republicans want to shift Social Security money in the form of private accounts.  How would you like $700 billion to disappear from Social Security over night because of the reckless actions financial institutions take.

 

The worst part is that while this meltdown is taking place, the CEOs are still being given millions of dollars in bonuses, stock options, and other financial rewards.  Republicans have been in bed with corporate America from the beginning with policies that favor the wealthy and free them from any restraint or oversight. The sky is the limit.  Despite what T.Boone Pickens says, a record of wealth has been transferred from the average workers to the pockets of corporate America; CEO's make 400 times the average worker.  

 

So called economic and stock market experts on CNN, CNBC, and MSNBC end up aiding and abetting the Republicans and corporate American greed.  The only thing they are an expert at is giving out propaganda that follows the conservative Republican ideology. 

 

If the American people are really concerned about the future of their children, John McCain and the Republican party are not the answer in November.  They would only continue the policies of transferring more and more wealth from the average American to the wealthiest 1% --- that is the Republican policy.