Your Opinion: Free enterprise creates prosperity
Wednesday, October 5, 2011
Have you ever watched any one of the three “Back to the Future,” movies? In each of these movies, there is a scene that is repeated and it is when Biff grabs McFly in a head lock. He then proceeds to knock the top of his head with his other hand and says, “Hello, McFly is anyone in there or is anyone home.” I can understand what Biff is going through when trying to respond to those that believe that the “rich” are not paying their fair share.
Some people, who contribute to Your Opinion section, believe that if you acquire wealth in America you do so by taking advantage of others, by exploiting and holding others down.
They want tax rates to return to the level of the 1990s. They say, “During that period, the rich got richer. The middle class expanded. People rose out of poverty.” The question is whether or not they are as economically ignorant as they sound, or if they actually know the truth and are trying to mislead people. Yes, the 1990s turned out to be pretty good economically, especially after the Republicans gained control of the Congress and slowed down Bill Clinton’s spending and regulatory plans. Also, ever heard of the dot-com revolution? That’s where the incredible growth of the 90s came from, not from higher tax rates.
This idea that if we return to the 1990s level of taxation we will see the same economic success, is nonsense. Taxes do not generate economic prosperity, and therefore more revenue. The private sector, the success of our free-enterprise economy is what generated these revenues. Again, the 1990s was one of the greatest economic boom times in U.S. history thanks to the dot-com boom. This had nothing to do with taxation and everything to do with private enterprise. Sure, you can re-impose the tax rates from the 1990s, but it will not bring about economic prosperity or the revenues they want.
These people believe the idea of tax increases on the wealthy because they do not believe they deserve to keep what they have earned; and they know that in these economic hard times many in the lower income brackets are envious of those who have more, and this envy can easily be exploited.