Perspectives On the New Year—————–
A commentary
By J. F. Kelly, Jr.
The year 2017 was a runaway train careening around bends but never quite derailing. Donald Trump’s first full year in office was not for the faint of heart and it left him with an historically low approval rating. Business leaders and the stock market, however, heartily approved, with the market reaching record highs. Unemployment continued to fall and the economy continued to grow toward the 3+% needed as a minimum to sustain an economy of our size and provide the jobs for a growing population. Much of the improvement can be attributed to a reduction in the burdensome regulations that hampered businesses during the Obama years and the prospects of corporate tax relief.
The tax relief came as a year-end present which cut the corporate tax rate, lowered taxes for nearly all Americans (those that actually pay income taxes, that is), doubled the standard deduction and simplified the tax code to the extent that nearly all American taxpayers will just take the standard deduction rather than itemize. A number of corporations responded immediately by announcing bonuses for employees, pay raises, and plans to hire more workers. Lowering the corporate rate from what was the world’s highest should make American businesses more competitive. As businesses grow and expand their workforces, the competition for workers will grow, forcing wages higher. That’s the premise anyway and it’s worked before.
Liberals and the liberal mainstream media, naturally, do not approve and claim the tax bill was a giveaway to the rich. By rich, they presumably mean those who own stock which is a pretty large segment of the population given that most investment and retirement portfolios and pension plans contain stock. Perhaps by rich, they mean anyone with more money than they have. Well, the purpose of the tax bill was to help businesses make the economy grow and provide more and better- paying jobs. God loves the poor and we should, too, but nobody ever got a job from a poor person. For workers to prosper, the companies they work for must prosper first. They have been sitting on piles of cash for two reasons. One was uncertainty about the future. Businesses hate uncertainty. The second was doubt over whether America was the best place to invest in or locate a business because of regulatory burdens and high corporate taxes. The tax bill changed that.
But House minority leader Nancy Pelosi said that the tax bill reflects “the greed of those with power, the cruelty that is in the heart of the tax scam”. Scam? Please. She and Chuck Schumer must be getting all their material from the mainstream media. Oh, well. They’re going to oppose anything that Trump and the Republicans come up with. More troubling is that polls indicate that over half the public was opposed to the bill. I attribute that to ignorance regarding how the economy works, disinformation spewed by the mainstream media and our current state of political polarization. If the tax reform works as intended, most Americans will benefit. But meanwhile, its passage into law should end all opposition, at least until the next election. It now behooves us all to hope that it does work. When it does, however, don’t expect Pelosi, Schumer or the liberal media to admit that they were wrong.
Other events that will dominate the news in 2018 include the North Korean problem and China’s continued refusal to do all that it must to curb the nuclear ambitions of Kim Jong Un in order to avoid a military solution which could lead to catastrophic casualties. We need to be much more persuasive in this regard, including a warning to China that failure take the necessary steps could result in an end to our recognition of the one-China policy and the undertaking of actions to facilitate Japan’s transition to a major military power with nuclear weapons.
China’s economy continues to grow and is on track to overtake ours. With that will come increased military capability as China transitions from a regional to a global military power. While China grows its military, ours remains undersized with respect to the demands on it which have grown. Will we be willing to devote the resources necessary to keep pace? Maintaining a military of the size and capability necessary to protect our vital interests will not come cheaply or quickly. Promises to expand the Navy’s fleet, the smallest since the Great Depression, have not been accompanied by the necessary funding action.
Radical Islamic terrorism at home and in other western nations will continue to keep us on edge, illustrating the need for greater border security and enhanced means for determining who is entering our country and why. Finally, Trump’s decision to fulfill a campaign pledge by recognizing Jerusalem as the capital of Israel resulted in a UN resolution condemning the U.S. which was, remarkably, supported by most of our allies, including the former colonial empires of Britain and France, whose empires included vast Muslim lands, many of whose people now reside in Britain and France and apparently need to be pandered to. The vote, an insult to the U.S. which hosts the UN, provides more of financial support than any other nation and, as a sovereign nation, has a right to locate its embassy wherever it wishes, again raises the question of why we should provide any support to such a blatantly anti-Israeli and anti-American organization. No nation that voted for this resolution should henceforth receive a penny of U.S. aid.
It will be another interesting year. Enjoy it if you can. Happy New Year to all.
December 30, 2017