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Thomas Pope 
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Recent Comments

Re: “Legislative boodlers

The U6 unemployment rate is still at 8%, partly because they can get benefits and don't have to return to work. And if you consider the U6 doesn't include discouraged worker past one year the rate is higher than the official index.

Posted by Thomas Pope on 06/19/2018 at 5:42 PM

Re: “Title bout

Most vile cartoon!

Posted by Thomas Pope on 06/19/2018 at 5:37 PM

Re: “Civics

Which amendment is it that allows maniacs to have cartoons!

Posted by Thomas Pope on 05/24/2018 at 3:52 PM

Re: “Flooding the swamp

Nations who negotiate sweet deals with the US pharmaceutical companies are only able to do so because these companies can pass the losses on to American consumers. But if pharmacies and hospitals were able to negotiate the same low prices for US consumers the entire pharmaceutical industry would collapse! It's another prime example of an assault on the United States the liberals delight in!

0 likes, 2 dislikes
Posted by Thomas Pope on 05/24/2018 at 3:51 PM

Re: “Like wrestling

Trump's policies to help a financially failing US Postal Service are nothing compared to the outright accepting of bribes by Secretary of State Clinton for access to the State Department and donations to the Clinton Foundation in exchange for access to US Uranium stocksl!

2 likes, 15 dislikes
Posted by Thomas Pope on 05/24/2018 at 3:44 PM

Re: “The pathetic fallacy

The only thing pathetic I see is Keynesian economists don't seem to be able to read a graph containing annual growth rate data. If you examine the World Bank's annual growth rate chart for the United States you'll see the greatest expansions in GNP occurred during times when taxes were cut.

And of course you have to remember there was a period of time following WW 2 when the world was still a system of regional economies. Every business within the region paid a similar high tax rate during the Truman and Eisenhower and early Kennedy administration. The US was its own region and there were very few foreign competitors paying lower tax rates to their governments that could siphon off market share. But also, just about all foreign industrial economies except the US had been destroyed in WW 2. It wouldn't be until the late 1970s and 1980s before the US had any real international competition again. So high taxes in the US didn't have the anti competitive effect then they would have now in the era of globalization.

But if you take a look at the World Bank's chart you'll see JFK's economic expansion had dropped to 2.5% by 1967 but tax cuts implemented by LBJ quickly restored growth to 5.6% by 1973.

However, the JFK/LBJ recovery was derailed by the Arab oil embargo in 1973, sinking to -0.51 by 1974.

President Ford implemented a Keynesian tax cut to increase consumption, which expanded GNP to 5.5% by 1978. Ford's short lived expansion seems to be the pattern of consumption and debt driven economic recovery policies - 2 to 4 years of low economic expansion.

After Carter became president and continued a government spending economic recovery model, GNP growth, wracked by inflation continually sank and by 1980 GNP expansion had sunk to -0.245% but regaining to 2.59% by 1981.

Reagan's first order of business was to work with the Federal Reserve to induce a recession with interest rate hikes to get control of inflation. GNP expansion fell to -1.911 by 1982. But following his across the board tax cuts economic growth surged to 7.25% by 1984 and leveled off consistently above 4% until 1988. The power of Reaganomics became obvious in the 1980s. Revenues to government surged 900 billion during this period but the congress increased government spending by 1.2 trillion erasing any reduction in the US budget deficit. By 1991 a down turn in the normal business cycle had declined economic growth to -0.074%.

Clinton raised taxes to focus on the Bond market and by 1992 growth averaged between 3 and 4% annually until 2000. But economic expansion was also assisted greatly during this time by the Greenspan policy of holding rates very low, arguing the burgeoning technology products and internet would prevent inflation from returning and slowing growth. And also in Clinton's second term the capital gains tax rate was cut 8 points after the Republicans took over both houses of congress. However, the tech sector tanked during Clinton's last year of office and by 2001 the economy had sank to 0.97% growth.

George W. Bush, following a Raganomics model cut taxes across the board and by 2004 growth had returned to 3.75% annually. Unfortunately the subprime loan fiasco of policies in the 1990s that forced banks to extend loans to low income borrowers with no down payment and poor credit scores collapsed Wall Street with CDO derivatives and the economy sank to -2.77% by 2009. And it should be noted that Bush's stimulus checks did nothing to prevent a major collapse.

Barack Obama, except for a few middle class tax cuts offered a classic Keynesian stimulus package, borrowing 890 billion and tacking it on to the last year of the Bush 2009 budget. The Fed also printed several trillion to bailout banks and businesses worldwide. By 2010 growth peaked at 2.5%. However, following the typical short lived Keynesian recovery pattern, the economy began sinking again very quickly. Fed Chairman Ben Bernanke revealed in an interview with the WSJ Journal that he resumed Quantitative Easing in response to an impending collapse, to drive down bond rates and force investors into the stock markets. A huge market bubble emerged even though Obama GNP expansion rate averaged less than 2% annually until 2015. So the economy has been driven by printed money since 2010, not business earnings and the Fed's balance is around 4.5 trillion. Once bond run off begins and interest rates rise economic growth is going to stagnate and a hyper inflation depression is possible. Trump's tax cuts are the only hope the economy will regain a solid footing, even though the recent budget with a large increase in deficit he signed is not encouraging.

Dumas makes a qualitative argument for economic expansion but if you examine the economic growth rates over the last 40 years and apply economic history it's obvious that on balance Neo-classical of economics known as Reaganomics by focusing on investment as well as consumption is more powerful at expanding GNP at low levels of inflation for a longer recovery period than the Keynesian model.

1 like, 3 dislikes
Posted by Thomas Pope on 04/15/2018 at 8:08 PM

Re: “Fire with fire

Fire with Anger is more accurate!

Posted by Thomas Pope on 04/07/2018 at 4:43 PM

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