The former Secretary of State and New York Senator, Mrs. Hillary Clinton, has informed the American people that businesses do not create jobs.
In providing Americans with a rather interesting economic perspective of how people get hired, the former First Lady then went on to let Americans know that “trickle-down economics” not only doesn’t work, but it has failed spectacularly. I suppose this is meant to mean there is somehow a connection between the policy of trickle-down economics and how jobs are either created or not created. That’s important as there are 20-24 million Americans that need full-time jobs.
It is unclear to what era of American economic life she was referencing, but as far back as America under President Calvin Coolidge we had unemployment below 3%, a balanced budget, growing personal income, and in fact the generation of budget surpluses with a top tax rate on income that had been reduced to 28%.
Maybe the answer to Mrs. Clinton’s riddle lies elsewhere.
Under President John F. Kennedy, the top tax rate was reduced from over 90% to 70%, and subsequently, in the years following, as the President then said before a Detroit audience at the prestigious Economic Club “a rising tide lifts all boats” as millions of new jobs were created.
That does look like a failure.
What about President Ronald Reagan? He reduced top tax rates from 70% to first 50% and then in 1986 to 28%. Both tax rate reductions were part of an across the board tax rate reduction and reform which grew the US economy between 1983-89 by some 18+ million new jobs.
And between 1993-2000, the US economy grew by another 21 million jobs, with capital gains taxes being reduced in 1996 along with companion legislation calling for a balanced budget and welfare reform.
What failed?
The former Secretary of State then references President William Clinton’s administration by saying the former President had a secret–he brought arithmetic to Washington as opposed to apparently all other administrations.