B. Kidd
Diamond Member
Agreed Clinton did do some good things.
What stood out to me from the OPs message was the following comparison:
During Clinton's terms, there were 22.7 million jobs added in the US. Average weekly wages grew by 21%.
During Bush's terms there were 1.1 million jobs created. That did not even keep up with the people graduating from school and entering the work force. Average weekly wage increased by 2%. Not even one years inflation.
Obviously, there are more metrics to consider when analyzing the performance of an economy, but real wage growth is important to continue our consumer-dependent economy. Easy money from home refinancing, cashing in equity returns, etc. is gone for awhile. We need real wage growth.
Unfortunately, Bob, both parties struck out as regards job outsourcing/manufacturing. Players from both parties got their paydays to turn a blind eye to this. Its' called public self-service, not public service for many years now.
Because of dwindling jobs, therefore dwindling union members, the remaining union members are political tools (some being professional protesters), with the remaining members relegated to hoping they'll keep their jobs, remaining pensioners from these unions hoping to collect their monthly check (and in this economy, there are no guarantees that will continue).
Additional future taxes are considered an anti-dote for our out-of-control deficits, that will result in more corporations fleeing, so Bob, where is 'real wage growth' going to come from?
Real wage growth can be achieved by improving education and emphasizing worker-training programs. The jobs that have been outsourced need to be forgotten because a sheltered, protectionist approach will damage trade relations and encourage inefficiencies. More importantly, we will not get these jobs back even if we wanted to.
I believe international trade is important, and ingenuity is imperative for economic growth. To foster real wage growth, we need to invest in human capital to produce the goods and services of future fast growing industries and technologies.
You are partially correct by emphasizing human capital. (That was how Malaysia threw off 3rd world status in the late 80's, going into the 90's). That is as important as also considering the less popular U.S. gov't option, of reducing corporate taxes.
U.S. companies have been at a significant disadvantage in the world economy as American businesses, both large and small and across all industries, pay from 35% to 41.6% of their income in COMBINED Federal AND State taxes.
Compare that to socialist France, where companies pay 34.4% in taxes, China 25% (no wonder they buy our debt), and Russia 24%.
Reducing U.S. corporate taxes along with investing in human capital, would be the best of both worlds towards fostering economic growth and wages.