President Reagan ordered the removal of solar panels installed by President Carter from the White House roof. Whether this was because of antipathy to the idea of renewable energy, kowtowing to the oil lobby or because of a leak in the roof, almost 40 years later there can be little doubt about which of the two presidents was on the right side of history in this important aspect. I am glad President Carter lived to see this particular arc bend in the right direction. But this blog is not about political partisanship. The reason I chose this incident to start this post is to show how long it takes to bend the arc of history. Partisanship in the US has reached the point where the vast majority of voters on both sides have stopped listening to the other side leaving perhaps 10% in the middle of the road with an open mind. While the Silent Majority may have elected Nixon, I feel this small minority could determine the next election. This blog will be directed primarily at this group with the aim of having an exchange of ideas among people open to reason and compromise. If this minority can be motivated, we are less likely to be at the mercy of extremists on both sides. In the present hyper-partisan atmosphere, this minority has the power to bend the arc of history, slowly and deliberately, by supporting middle-of -the-road candidates. I plan to discuss various current issues with the aim of promoting moderation over extremism.
Let's start with the issue of taxes. On the right there are those who, like Milton Friedman, believe in "cutting taxes under any circumstances, for any reason, whenever possible". On the other side are those who would raise taxes regardless of circumstances. I would like taxes to be considered a tool for managing the economy, not an ideological wedge. The current administration's tax cut has no doubt stimulated the economy, boosted stocks and lowered unemployment. However, the annual federal deficit has ballooned to over a trillion dollars pushing the total deficit past $23 trillion. As usual, the increased revenue which is always part of the case for lowering taxes has not materialized and so-called "deficit hawks" have fallen silent. If, or when, interest rates rise to normal levels, servicing the debt will add a significant burden. Of course, this scenario plays out every time taxes are lowered without regard to the consequences and a subsequent (usually Democratic) administration is left with the unpleasant task of balancing the budget, reinforcing their "tax and spend" reputation. I would like to think that if moderate voters had their say, taxes would be raised in good economic times so they can be lowered when the economy needs help. If taxes are lowered in good times it is difficult to lower them further in an economic downturn. I do not claim to know what the ideal tax rate is, but present policies appear to be delivering boom/bust cycles while the red ink only keeps growing.