Letters to the Editor

Government is the problem, not solution

In the January 2014 edition of the Kingston Community News, columnist Marylin Olds in “As It Turns Out” used a phrase from the Reagan era to describe Supply Side Economics.

The term “trickle-down economics” was/is a term used by Democrats to disparage supply side economics. Marylin, of course, has it wrong. (I am sure she feels that wealth is created by the government. She cannot be more wrong; government in and of itself creates nothing.)

Under supply side economics, the U.S. experienced economic growth that has since to be equaled. Her simplistic description fell far short of reality. Simple put: “Supply side” grows the economy by allowing more money to stay in the private sector (where it is created). Business and private individuals decide were best to invest. The simple act of reinvesting creates growth and wealth.

Private enterprise is not to blame for the current gap between the haves and the have nots. The current government should take full ownership of this problem. It has created a dependency class not seen since the Great Depression.

Government regulation (example: Obamacare) has created regulations that encourage companies to hire part-time employees; this simple fact puts downward pressure on real wages.

Another government program (QE3) has created tremendous wealth in the stock market, thus favoring the wealthiest among us.

These are just two of the many government fallacies that have led to this gap.

A side note: Unfettered capitalism hasn’t been seen since China took over Hong Kong. I would suggest that Marylin invest in an economics class from Olympic College. It will do her well.

Chris Jacobson
Kingston

 

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