KelliPundit

Saturday, February 19, 2005

CAPITALISM'S LIBERATING POWER

In today's Washington Post, E.J.Dionne laments that the President's new budget proposal "cuts programs for the poor while insisting that no tax cut for the wealthy be left behind". His piece stands out because it does not include the personalized anti-bush invective that some liberal pundits embrace, but instead displays Dionne's belief that President Bush is sincere in wanting to help the poor. He references a speech that the President gave in 1999 concerning the importance of charity and praises the possible benefit of faith-based charities.

Mr. Dionne's conclusion, however, is that the President has failed in keeping the promise to help the poor. He complains that the President's actions have only helped the rich get richer by cutting their taxes. Dionne's arguement reveals competing philosophies between he and the President. Dionne embraces the social justice of collectivism in which wealth is redistributed so that everyone's piece of pie is closer to being the same size. By increasing taxes on business and the citizenry , however, the overall size of the pie shrinks and consequently everyone gets a smaller piece of pie. On the other hand, the President seeks to lower taxes for all individuals and business thereby creating more jobs and more wealth. In this model the size of the pie increases and everyone get a larger slice (Ummm, I'm hungry!!).

Remember, the President's tax cuts were across the board. Everyone who paid federal income tax got a tax cut. In fact, some of our poorest tax payers are now exempt from paying federal income tax. This action by the President caused the past recession to be the shortest and shallowest in U.S. history!!

The same strategy to help the poor spills over to his plan to offer personal accounts, as an option, in social security. Here, the President is trying to transform a collectivist entitlement plan that is failing to yeild a good rate of return for it's participants into an investment vehicle (with conservative parameters) that will build wealth through higher rates of return and ultimate ownership. The poor are most dependent on social security and therefore, in a relative sense, stand to gain the most from personal accounts. The transformation, as is the case with 401-k's and Roth IRA's, further cements a partnership between U.S. citizens and corporate America by allowing investors to share in the profits of big-business.

The President's strategy provides real social justice for all by rejecting socialism and it's scattered failures across the globe (see Russia, Cuba and to a lesser extent Canada and Western Europe). When will liberals realize that the battle between socialism and capitalism is over and that free enterprise won?! Now, pass me another piece of pie!