Where’s the recovery? Tax, spending cuts needed | SummitDaily.com

Where’s the recovery? Tax, spending cuts needed

If, despite Wall Street’s best cheerleading efforts, you are wondering why the post-war recovery hasn’t materialized, perhaps you will begin to consider that the problems with the economy are much deeper.

If it were only about the war, why would we be pursuing tax cuts to stimulate the economy?

If you are a voter who credits the previous administration with the economic good times, are you aware that the broad market decline leading to the current secular bear market began long before George W. Bush took the oath of office?

Were you not listening when Alan Greenspan warned of our “irrational exuberance” as early as 1996?

Have you also noticed apparently everyone in Washington, D.C., agrees that a tax cut is a good idea?

It is only a question of magnitude. Unless we conclude that they are all completely incompetent, tax cuts must be good for the economy.

Are you aware our last tax cut occurred under the Reagan administration in 1986? Is it only a coincidence that it preceded the greatest period of economic prosperity in our nation’s history? Is it possible, then, that the guiding of an economy, particularly one as large as ours, is similar to the steering of an immense ocean liner?

It can be very, very slow to respond. Wouldn’t it be naive to presume then, now that the party is over, the current captain is responsible for the consequences?

For those of you justifiably concerned over the budget deficits, they are not the immediate problem. Thankfully interest rates are very low.

If we can get the economy jump-started, federal revenues will grow again. I hope in dealing with any future budget shortfalls, as a result of this experience, you will join me in forcing federal spending cuts instead of increasing our tax burden.

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