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Journal of the Plague Year, Part 4

The Country Mouse

It’s been a tough row to hoe for Democrats. They have been trying, roughly for four years, to exorcise the demon President Donald Trump, by any means necessary, according to their chief exorcists, Speaker of the U.S. House of Representatives Nancy Pelosi, New York Senator Chuck Schumer and -- to a lesser degree, because he is a lesser congressman – U.S. Senator Dick Blumenthal of Connecticut. Presiding over the exorcism were the Associated Press, the New York Times, the Washington Post and other interested (read-politically partisan) left of center publications.

A multi-yearlong investigation that tried to pin former Secretary of State Hillary Clinton’s loss in the 2016 presidential election on backroom collusion between Trump and the Russians failed spectacularly. An elaborately choreographed attempt to impeach Trump that had begun even before the demon had been sworn in as president also fizzled, as the Democrats mentioned above knew it would, the Senate, charged with trying a finding of impeachment flowing from the House, having remained in Republicans’ clenched fists.

Along came Coronavirus, courtesy of China, and finally Trump, according to the above mentioned media outlets, had been toppled.

We’ve had eight years of President Barack Obama and, once electors have cast their die on December 14, we will, most commentators agree, have a new president-elect in the person of former Obama Vice President Joe Biden.

It will be tempting to treat the two presidents, Obama and Biden, as bookends interrupted by a Trump presidency.

Are they bookends? Or will Biden develop his own domestic and foreign policy initiatives separate from those of the sainted Obama, whose foreign policy in the Middle East, North Africa, South America and other hot spots had not been an unmitigated success?

That, as Shakespeare’s Hamlet might say, is the question. Hamlet, it will be recalled, is torn between the claims of conscience and right action. Conscience always will, in the moral imagination …

make cowards of us all,

And thus the native hue of resolution

Is sicklied o'er with the pale cast of thought,

And enterprises of great pitch and moment

With this regard their currents turn awry

And lose the name of action.

Shakespeare, we know, has never been a primer for politicians, the more conscientious of whom have occasionally wrestled with their frayed consciences.

The question – are Obama and Biden bookends? – throws us back upon the question -- will Biden’s conscience, such as it is, turn him away from Obama’s vision of the United States in the world and so overthrow progressive enterprises of “great pitch and moment,” such as peek out at us from the Democrat Party Platform, heartily approved by Vermont socialist Bernie Sanders and socialist clingers-on such as Alexandria Ocasio-Cortez (AOC), who represents the Bronx in New York City.

Progressives are rather hoping the gravitational pull of what may now be a moribund moderate Democrat Party will not be so massive as to dull their own native hue of resolution. And they may be right.

The Democrat Party has been drifting left for decades. The mass of the party is now progressive rather than liberal. It may be a mistake to regard Pelosi and Ocasio-Cortez (AOC) as ideological polar opposites. If the touchstone for Democrat Party liberalism is President John Kennedy and its moral lodestone the Reverend Martin Luther King, the post-modern, progressive Democrat Party has supplanted both. The post-modern progressive's attitude towards the claims of Christian faith are hardly reverent; and the political orientation of the post-modern progressive is hardly liberal. 

Both Pelosi and AOC would shrink from the liberal economic prescriptions adopted by Kennedy in his 1962 address to the Economic Club of New York.

Vanishing Democrat “moderates” may want to revisit that address, excerpts from which are recorded below.

Calling for necessary action from the U.S. Congress, Kennedy ambition was to reform and repurpose the post-World War tax system:

If we do not take action, those who have the most reason to be dissatisfied with our present rate of growth will be tempted to seek shortsighted and narrow solutions -- to resist automation, to reduce the work week to 35 hours or even lower, to shut out imports, or to raise prices in a vain effort to obtain full capacity profits on under-capacity operations. But these are all self-defeating expedients which can only restrict the economy, not expand it.

… the most direct and significant kind of federal action aiding economic growth is to make possible an increase in private consumption and investment demand -- to cut the fetters which hold back private spending. In the past, this could be done in part by the increased use of credit and monetary tools, but our balance of payments situation today places limits on our use of those tools for expansion. It could also be done by increasing federal expenditures more rapidly than necessary, but such a course would soon demoralize both the government and our economy. If government is to retain the confidence of the people, it must not spend more than can be justified on grounds of national need or spent with maximum efficiency. And I shall say more on this in a moment...

The final and best means of strengthening demand among consumers and business is to reduce the burden on private income and the deterrents to private initiative which are imposed by our present tax system -- and this administration pledged itself last summer to an across-the-board, top-to-bottom cut in personal and corporate income taxes to be enacted and become effective in 1963...

But you can understand that, under these circumstances, in general, that any new tax legislation enacted next year should meet the following three tests:

First, it should reduce the net taxes by a sufficiently early date and a sufficiently large amount to do the job required. Early action could give us extra leverage, added results, and important insurance against recession. Too large a tax cut, of course, could result in inflation and insufficient future revenues -- but the greater danger is a tax cut too little, or too late, to be effective.

Second, the new tax bill must increase private consumption, as well as investment. Consumers are still spending between 92 and 94 percent on their after-tax income, as they have every year since 1950. But that after-tax income could and should be greater, providing stronger markets for the products of American industry. When consumers purchase more goods, plants use more of their capacity, men are hired instead of laid-off, investment increases, and profits are high.

Corporate tax rates must also be cut to increase incentives and the availability of investment capital. The government has already taken major steps this year to reduce business tax liability and to stimulate the modernization, replacement, and expansion of our productive plant and equipment. We have done this through the 1962 investment tax credit and through the liberalization of depreciation allowances -- two essential parts of our first step in tax revision -- which amounted to a ten percent reduction in corporate income taxes worth 2.5 billion dollars. Now we need to increase consumer demand to make these measures fully effective -- demand which will make more use of existing capacity and thus increase both profits and the incentive to invest. In fact, profits after taxes would be at least 15 percent higher today if we were operating at full employment.

For all these reasons, next year's tax bill should reduce personal as well as corporate income taxes: for those in the lower brackets, who are certain to spend their additional take-home pay, and for those in the middle and upper brackets, who can thereby be encouraged to undertake additional efforts and enabled to invest more capital.

Third, the new tax bill should improve both the equity and the simplicity of our present tax system. This means the enactment of long-needed tax reforms, a broadening of the tax base, and the elimination or modification of many special tax privileges. 

Those are the three tests which the right kind of bill must meet -- and I am confident that the enactment of the right bill next year will in due course increase our gross national product by several times the amount of taxes actually cut. Profit margins will be improved, and both the incentive to invest and the supply of internal funds for investment will be increased. There will be new interest in taking risks, in increasing productivity, in creating new jobs and new products for long-term economic growth.

I repeat: our practical choice is not between a tax-cut deficit and a budgetary surplus. It is between two kinds of deficits: a chronic deficit of inertia, as the unwanted result of inadequate revenues and a restricted economy, or a temporary deficit of transition, resulting from a tax cut designed to boost the economy, increase tax revenues, and achieve, I believe -- and I believe this can be done -- a budget surplus. The first type of deficit is a sign of waste and weakness; the second reflects an investment in the future.

The Kennedy reforms, passed into law during President Lyndon Johnson's administration following the Kennedy’s assassination, were hugely successful; so successful, in fact, that Johnson and the Democrats were able to finance their Great Society programs with revenue generated by the Kennedy reforms.

Johnson, considered a masterful deal maker, had a bit of a problem convincing southern Democrats to vote in favor of the 1964 Civil Rights Act, also initiated by Kennedy.

“These Negroes,” Doris Kearns Goodwin quotes Johnson in her biography, Lyndon Johnson and the American, “they’re getting pretty uppity these days and that’s a problem for us since they’ve got something now they never had before, the political pull to back up their uppityness. Now we’ve got to do something about this, we’ve got to give them a little something, just enough to quiet them down, not enough to make a difference. For if we don’t move at all, then their allies will line up against us and there’ll be no way of stopping them, we’ll lose the filibuster and there’ll be no way of putting a brake on all sorts of wild legislation. It’ll be Reconstruction all over again.”

Neither Kennedy nor Johnson, it needs be said, was a post-modern progressive. Both were cautious liberals. The break between the liberalism of, say, Adam Smith and the socialism of Bernie Sanders should be obvious to anyone, even a progressive, who has a basic understanding of world history.

Today, Sunday, December 6th, was the first fall of new snow on Bolton Lake in Vernon. The snow blanketed everything in purist white and muffled the usual cacophony of sounds. Snow is a great insulator and forces our thoughts inward. It also serves as a precursor to the Christmas season, following by a few days the first day of winter on December 21.

Here on the lake, everything is in readiness for Christmas; leaves have been blown and wood put aside for the wood stove. Andree, to whom I read recently Evelyn Waugh’s novel “Put Out More Flags,” has put out modest Christmas lights in front of our house, and its inside shines with her decorations. Her Fidelco guide dog, luxuriating on the living room rug, has at last made himself at home. He, at first anxious, and the house have married each other and are living in wedded bliss.

We remember with gratitude those who have gone before us – my parents, Frank and Rose, and Andree's parents, Ernie and Margaret – now that the snow, muffling everything in holy silence, has opened the eyes of our imaginations so that we may warmly embrace the past, a wayfarer returning home after a long absence.


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