The Democratic Platform Will Stunt Economic Growth

Economic growth is the lifeblood of a nation. A growth rate of 3% in annual Gross Domestic Product (GDP) is considered healthy. America hasn’t seen 3% since 2007. Last quarter’s rate was 1.10%. The 2016 Democratic platform proposes “feel good” economic actions that will further weaken an already seriously ailing economy.

GDP, in simplest terms, is the total value of all goods and services produced in a nation in a given period, usually a year. That amount, last year about $18 trillion, must increase reasonably each year to ensure a thriving economy. Economic growth means more purchasing options, better products, higher real wages, improved quality of life, more conveniences, and faster and more dependable services. Growth is also crucial in keeping us competitive with other growing countries.

If you are buying the misconception that the economy is getting healthier because employment is up and the market is booming, consider this analogy. When you get blood pressure and cholesterol under control, the conclusion might be that you are getting healthier. But, if your heart remains weak, good blood pressure and cholesterol numbers aren’t going to better your health. Growth is the driver of economic health and well-being of a nation. Other economic factors just reflect the growth or stagnation of the economy. If measures of other factors are improving while growth is lagging, the improvements are artificial and misleading. The Democratic platform advocates increases in certain popular elements of the economy while stifling the fundamental elements required for economic growth.

One of the most economically devastating planks in the platform is the call for a minimum wage increase to $15.00 per hour. The federal minimum wage is currently $7.25 per hour. We could debate the efficacy of increasing minimum wage for hours. That may be a topic for a later post. However, the fact is that more than doubling the minimum wage would bring growth to a standstill and possibly shrink the economy. Artificially increasing wages, especially to this proposed level, would skyrocket inflation and virtually bring industrial capital investment to zero. It might lift some people out of poverty, but only at the economic peril of the entire population. A healthy economy will naturally increase wages through labor supply and demand.

Then there is that plank that will guarantee free community college for everyone. One of the first principles I teach in my economics courses is that nothing is free. Anything that is free to one person is paid for by another person. Free college would cost many billions of dollars in taxes. The Democrats’ answer to that is to tax wealthier people their “fair share.” The top 50% of all tax payers already pay 90% of all taxes. The top 5% already pay 57% of all taxes. The top 1% already pay 35% of all taxes. These happen to be the people responsible for most of the nations production. More taxation would lead to less productivity because of less ability to invest in capital growth.

I have only highlighted two economic killers in the Democratic platform. There are more. In fact, most of the platform is about more services and more taxes to pay for them. The much better way to elevate the quality of life of every citizen is to generate economic growth of at least 3% which is accomplished with less government intervention and lower taxes. As the saying goes, a rising tide lifts all boats.

I urge you to compare both parties’ platforms. We have two presidential candidates that most voters don’t like. So it’s even more important in this election that we focus on the values and principles of the parties. That is what will impact our lives.

 

America’s Crisis Should Be Expected

America is in crisis. I join most Americans in fighting denial of what is happening on a daily basis in our country. Terrorism from without and within, senseless mass killings, inexplicable justice system decisions, political chaos, religious persecution, sexual exploitation, rampant addictions, and racial conflict are just a few examples of our national crises.

Our nation as a whole has willingly followed leaders who have, by design or incompetence, led us down a dangerous road of immoral and unbiblical behavior sanctioned by policy, statute, and court judgments. The majority of citizens have been opposed to such moves, but have failed to fight back.

Apathy has prevailed on the part of good people as America has declined in almost every measure of decency, integrity, and civility. By the millions, people have turned away from churches, prayer, emphasis on family, and patriotism. We have instead placed our faith in materialism, secularism, and pleasure. This state of the union can only degrade our culture and threaten our future and that of our progeny. We are now reaping the result of this exponentially deepening spiral of moral decay. We are experiencing an unprecedented phenomenon that has only one explanation–only one rationale.

What is happening in America is beyond logic. There is only one explanation. We have allowed the incipient culture of secularism to replace the spiritual culture that made our country the greatest in the history of mankind. Our blindness to truth has caused God to remove his protective and guiding hand from the nation that He formed and blessed beyond measure. Godly wisdom is no longer a factor in the daily affairs of most Americans. We are generally acting on our own human impious mind devoid of godly wisdom. That is why there is little sense or rationale to the recent behavior highlighted daily in our media.

The first chapter of Habakkuk in the Bible provides a graphic parallel between what happened in the nation of Judah and what is happening in our nation today. I urge you to read it. Is it too late for America? Maybe. But, our God seems always merciful and forgiving if we, even at the eleventh hour, turn back to Him. Another passage of scripture rings loud and clear as a clarion call in the wake of this time of crisis. “If My people, who are called by My name, will humble themselves and pray and seek My face and turn from their wicked ways, then will I hear from heaven and will forgive their sin and will heal their land.” 2 Chronicles 7:14

 

 

 

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