[fboygan]

Democrats Need New Ideas, Not New Think Tanks: Kevin Hassett
Aug. 22 (Bloomberg) -- When you weigh the things that have led to Republican political domination in recent years, you can't help but be struck by the dearth of innovative ideas coming from the Democrats.

Even Los Angeles Times columnist Michael Kinsley, no fan of the Republicans, has noticed. ``It's true that the Republicans are the party of ideas and the Democrats are the party of reaction,'' he wrote earlier this month. ``Republicans set the agenda, and Democrats try to talk the country out of it.''

With Democrats faltering in the marketplace of ideas and reeling from electoral losses, a group of financiers has initiated a visible and collective movement to recover -- a vast left-wing conspiracy, you might call it. The Washington Post reported on Aug. 7 that at least 80 liberals have pledged to contribute $1 million apiece to fund a new network of think tanks through an organization known as the Democracy Alliance.

Their intent is to revive the intellectual left.

Their endeavor is doomed from the outset.

Taxes and Growth

It's folly to construct a network of research organizations with a clear aim of supporting specific political ends, in this case those of the Democratic Party. Good research provides no political advantage because it convinces everyone.

You shouldn't care who accepts your research. While Republicans in the U.S. may have adopted more ideas emanating from a small set of think tanks, Democrats could have done so as well. What are these new think tanks going to do, keep their research secret from Republicans?

Indeed, it's quite common for ideas from ``right-wing'' think tanks to affect left-wing governments. For example, numerous studies have demonstrated that high corporate tax rates harm economic growth. Countries around the world have responded to this information by cutting tax rates.

They did so because the connection between tax rates and growth was convincing, not because of the political affiliations of the researchers.

All this raises the question: Why have Democrats been less reliant on the policy prescriptions emanating from think tanks that have documented the benefits of free enterprise?

World View

The answer provides another big reason that the Democracy Alliance will fail: Democrats continue to rely on a world view that crumbles under scrutiny.

Sifting through Democratic positions on numerous different policies, you find two core beliefs that differentiate their view of the world from that of Republicans.

First is the belief that redistributing income is the most important objective of government. Second is the belief that high tax rates don't hurt.

These beliefs create two problems for Democrats. The first is that if you assume they're correct you would find the two beliefs lead logically to highly unpopular policies. If equality is so wonderful, one should be willing to increase marginal tax rates in the U.S. on anyone who has an income higher than the median (about $43,000).

Tax increases are indeed recommended by left-wing intellectuals. New York Times columnist Paul Krugman, for example, recently called for the U.S. to raise taxes as a share of gross domestic product from the current 17 percent to 28 percent -- a 65 percent increase. Good luck to the politician who tries to convince voters of that.

Repudiated by Data

The second problem with these beliefs is that they have been repudiated by the data. One might be able to sell big tax boosts if the benefits of a more equal distribution of income were large. Perhaps the Democracy Alliance could support research that sheds light on the positives associated with equality.

It seems unlikely that such research will bear much fruit. The fact is the impact of the distribution of income on the economy has been the subject of hundreds if not thousands of papers. In rich countries, the literature clearly indicates that economic growth is higher in countries that have a bigger gap between rich and poor.

Attempts to redistribute income have harmed everyone over time. That's because high redistributive tax rates have all sorts of negative effects.

To some extent, a natural laboratory exists where ideal Democratic policies have been enacted by a powerful leftist government: France. As economist Donald Luskin emphasized in a recent National Review, the results of these policies have been catastrophic. Since 1991, average real GDP growth in France has been 1.8 percent. In the U.S., it was 3.1 percent.

What Microwave?

Surely, you say, the poor live better in France. Au contraire. ``The average French family has a lower standard of living than Americans living below the poverty level,'' Luskin wrote. ``Impoverished Americans have 16 percent more dwelling space per capita than the average French; the American poor are more likely to have a car, a dishwasher, a microwave oven, a personal computer, and a clothes drier.''

The problem with the left today isn't that they don't have enough think tanks. The problem is they have held on to core beliefs that are incorrect.

They don't need more think tanks to push their ideology. They need a new ideology.



To contact the writer of this column:
Kevin Hassett at khassett@aei.org.
Last Updated: August 22, 2005 00:19 EDT

[Mulderator]

Indeed, it's quite common for ideas from ``right-wing'' think tanks to affect left-wing governments. For example, numerous studies have demonstrated that high corporate tax rates harm economic growth. Countries around the world have responded to this information by cutting tax rates.

So when are the liberals actually going to learn this? We still get bassetman stomping around complaining how terrible it is that corporations don't subsidize his property taxes anymore! You'd think one of them would stop to think what the ultimate affect of these policies are rather than the knee-jerk reaction, "corporation bad---little guy good!" Honestly, even the "little guy" is getting tired of the Democrats constantly whining about the "little guy!"

[bassetman]

Originally Posted by Mulder

So when are the liberals actually going to learn this? We still get bassetman stomping around complaining how terrible it is that corporations don't subsidize his property taxes anymore! You'd think one of them would stop to think what the ultimate affect of these policies are rather than the knee-jerk reaction, "corporation bad---little guy good!" Honestly, even the "little guy" is getting tired of the Democrats constantly whining about the "little guy!"

fboygan, who woke you up

Mulder, from what I hear you "people" in CA pay some of the lowest mil rate property taxes around. Care to disprove this?

[fboygan]

fboygan, who woke you up

Oh, I've always been here, just haven't had much to say.

[bassetman]

So what loosened your tongue today?

[fboygan]

Guess I'm just gettin kinda tired of waitin for the Dems to show some leadership.

[Ciberblade]

It's still all about the same thing -- division.

Republicans have majority rule after a Democratic agenda had run its course for what? 30/40 years.

Democrats are convinced that their way is the only way...that Republicans are bad for the country -- and vis-versa (both will cite cherry-picked examples of why the other is unfit for rule) The truth is, little is being done for the benefit/protection of the people...and the people are in part to blame for this. Many cling to ideas that are no longer valid "I stand for the little people"
I got news for you all...the 'little' people are standing on top of everybody else, and they are using a shattered sense of power pursuit to do it. Much like the push for a religious addition to the pledge in 1954 when the words "under God" were added.

How about we stand with people who show leadership and forget this fraternity competition to divide the campus!

[fboygan]

Now yer talkin!

[bassetman]

Originally Posted by fboygan

Guess I'm just gettin kinda tired of waitin for the Dems to show some leadership.

I agree, they have to get past being called commies and unpatriotic for coming up with an idea that is different that the GOP's.

"You are either with us or against us carries no weight with thinking people anymore!"

It's still all about the same thing -- division.

Like I pointed out above, they use accusations of being unpatriotic!

[Wino]

Originally Posted by Ciberblade

It's still all about the same thing -- division.

Republicans have majority rule after a Democratic agenda had run its course for what? 30/40 years.

Democrats are convinced that their way is the only way...that Republicans are bad for the country -- and vis-versa (both will cite cherry-picked examples of why the other is unfit for rule) The truth is, little is being done for the benefit/protection of the people...and the people are in part to blame for this. Many cling to ideas that are no longer valid "I stand for the little people"
I got news for you all...the 'little' people are standing on top of everybody else, and they are using a shattered sense of power pursuit to do it. Much like the push for a religious addition to the pledge in 1954 when the words "under God" were added.

How about we stand with people who show leadership and forget this fraternity competition to divide the campus!

I'm all for it!! But I see no one on the horizon with leadership qualities.......lots of me, me, me qualities, though. We have settled for mediocrity for so long, not sure we can break the mold. I do disagree that people are only partly to blame..................I believe we are 100% to blame.

[bassetman]

Originally Posted by Ciberblade

It's still all about the same thing -- division.

Republicans have majority rule after a Democratic agenda had run its course for what? 30/40 years.

Democrats are convinced that their way is the only way...that Republicans are bad for the country -- and vis-versa (both will cite cherry-picked examples of why the other is unfit for rule) The truth is, little is being done for the benefit/protection of the people...and the people are in part to blame for this. Many cling to ideas that are no longer valid "I stand for the little people"
I got news for you all...the 'little' people are standing on top of everybody else, and they are using a shattered sense of power pursuit to do it. Much like the push for a religious addition to the pledge in 1954 when the words "under God" were added.

How about we stand with people who show leadership and forget this fraternity competition to divide the campus!

Pat Robertson and Zell Miller are good examples of GOP cooperation.

[bassetman]

Originally Posted by Wino

I'm all for it!! But I see no one on the horizon with leadership qualities.......lots of me, me, me qualities, though. We have settled for mediocrity for so long, not sure we can break the mold. I do disagree that people are only partly to blame..................I believe we are 100% to blame.

More are seeing the light Wino!

Press Release Source: Harris Interactive Inc.


Approval Ratings for President and Congressional Leaders Continue to Drop, According to Latest Harris Poll
Wednesday August 24, 7:30 am ET
The War Jumps to the Top of the List as the Most Important Issue for the Government to Address


ROCHESTER, N.Y., Aug. 24 /PRNewswire/ -- President Bush's job approval ratings are at their lowest point of his presidency as only 40 percent of U.S. adults have a favorable opinion of his job performance, while 58 percent have a negative opinion. This is a decline from just two months ago in June when the president's ratings were 45 percent positive and 55 percent negative. Much of this decline can be tied to the public's opinion on important issues. The war has climbed to the top of the most important issues list and the economy is now the second most important issue.

http://biz.yahoo.com/prnews/050824/nyw010.html?.v=23

[Wino]

Originally Posted by bassetman

More are seeing the light Wino!

Press Release Source: Harris Interactive Inc.


Approval Ratings for President and Congressional Leaders Continue to Drop, According to Latest Harris Poll
Wednesday August 24, 7:30 am ET
The War Jumps to the Top of the List as the Most Important Issue for the Government to Address


ROCHESTER, N.Y., Aug. 24 /PRNewswire/ -- President Bush's job approval ratings are at their lowest point of his presidency as only 40 percent of U.S. adults have a favorable opinion of his job performance, while 58 percent have a negative opinion. This is a decline from just two months ago in June when the president's ratings were 45 percent positive and 55 percent negative. Much of this decline can be tied to the public's opinion on important issues. The war has climbed to the top of the most important issues list and the economy is now the second most important issue.

http://biz.yahoo.com/prnews/050824/nyw010.html?.v=23

Seeing the light, and doing something about it are two separate things. I want to see some action by the people, not just simple polls that says they are upset, and not sheep on the way to slaughter, following the lying pied pipers in DC.

[Mulderator]

Originally Posted by bassetman

fboygan, who woke you up

Mulder, from what I hear you "people" in CA pay some of the lowest mil rate property taxes around. Care to disprove this?

Property tax rates per "mil" are irrelevant because property values in California are so high. I could care less what the rates are--its the total you pay that matters. The same house here that costs 750,000 costs $250,000 in Wisconsin. So if I pay 1% of 750,000, my taxes are going to be 7,500. If you pay 2%, yours are going to be $5,000. Who is better off? We both have the same house--you're paying a third of the cost and 2/3rds of the property taxes.

What you've heard is more liberal nonsense and distortion--comparing apples to oranges. California has the highest property taxes (absolutely) of just about anywhere in the country except for a few of the northeastern states like New York and New Jesery. And the only reason we don't have the highest (because the liberals would do that) is because they passed a referendum years ago (Prop 13) that prevented the state from raising your property taxes more than a certain amount each year because the "little guy" could no longer afford his taxes due to the property values going up so much here. This has been a bone of contention for the Democrats here for years--they'd love to get rid of that and tax the hell out of people on their high property values, but fortunately, the idiots here that vote Democrat are at least smart enough to realize if Prop 13 is revoked, they will pay through the nose on their taxes. You wonder why the Moore-Ons don't realize that by voting Democrat, they get that anyway in all kinds of taxes!

[Mulderator]

bassetman--you ignored this:

Indeed, it's quite common for ideas from ``right-wing'' think tanks to affect left-wing governments. For example, numerous studies have demonstrated that high corporate tax rates harm economic growth. Countries around the world have responded to this information by cutting tax rates.

Liberals seem incapable of understanding even this most rudimentary of economic concepts.