By: Allysia Finley – wsj.com – August 25, 2024

When Democrats talk about boosting the middle class, what they mean is government employees.

No surprise. Cheered on by the crowd, Democrats took turns whacking “oligarchs” and “corporate monopolists.” By the time Ms. Harris took the stage, the pinatas’ pickings had been splattered around. This is what Democrats plan to do if they win: destroy wealth creators so they can spread the booty among their own.

Corporate greed is “the one true enemy,” United Auto Workers President Shawn Fain proclaimed. Vermont Sen. Bernie Sanders insisted the party “must take on Big Pharma, Big Oil, Big Ag, Big Tech, and all the other corporate monopolists whose greed is denying progress for working people.” Pennsylvania Sen. Bob Casey railed against “greedflation” and accused corporations of “extorting families.”

Barack Obama lambasted Donald Trump and his “well-heeled donors.” “For them, one group’s gains is necessarily another group’s loss,” Mr. Obama said. “For them, freedom means that the powerful can do pretty much what they please, whether it’s fire workers trying to organize a union or put poison in our rivers or avoid paying taxes like everybody else has to do.”

Democrats treat wealth as a zero-sum game, and so Mr. Obama’s straw men are rich. They get richer by making everyone else poorer—and taking away from the well-off is the only way to enhance the lives of the poor and middle class. Hence, the left’s plans to raise taxes on “billionaires” and businesses to finance more welfare.

It isn’t enough that the top 1% of earners already pay 45.8% of federal income tax, which funds government services and welfare for the bottom half. As for poisoning rivers, perhaps Mr. Obama forgot that his own Environmental Protection Agency caused the 2015 Gold King Mine disaster, which spilled toxic waste into Colorado’s Animas River.

Quoting Abraham Lincoln, the former president invoked “the better angels of our nature” even as he appealed to America’s darker angels. His speech brought to mind a recent homily by my local parish priest about the dangers of class warfare and envy, one of the seven deadly sins.

Success, the priest explained, isn’t a zero-sum game. When a businessman succeeds, he creates jobs that help the poor. Envying and tearing down the successful makes everyone poorer. Rather than plunder the wealthy, society should celebrate success and try to help everyone prosper.

Democrats derisively refer to such ideas as “trickle-down economics.” They denounce and diminish business success, and claim the wealthy have profited from greed and government support. Who can forget Mr. Obama’s line in 2012 that “if you’ve got a business, you didn’t build that”?

Rather than try to make it easier for businesses to succeed—say, by reducing taxes or easing regulations—Democrats want to do the opposite. They call for “leveling the playing field” and “growing the middle class out,” euphemisms for taxing success so government can hand out money. But government doesn’t create wealth. People do.

While business success isn’t zero-sum, government growth can be. Its expansion makes it more difficult for business to thrive. The result is fewer jobs, lower wages and less tax revenue, which finances essential public services such as law enforcement and the “safety net” for the indigent.

Mr. Trump’s appeal in 2016 partly stemmed from slow economic growth during Mr. Obama’s presidency. The Republican promised to make all Americans richer by liberating businesses from government’s shackles. Mr. Trump’s deregulation and tax cuts worked: Average real wages increased nearly 70% faster during his first three years than during Mr. Obama’s presidency.

Yet most Americans have become poorer under Mr. Biden, as government spending has fueled inflation, which has eroded wages. Job growth has become increasingly concentrated in sectors that depend on government spending. When Democrats talk about boosting the middle class, they mean the class of government workers.

Government, education, healthcare and social assistance account for more than 60% of the new jobs added in the last year. In the 17 states where Democrats boast a “trifecta”—control of the governorship and both legislative chambers—the share is 98%. In the 23 states with Republican trifectas, it’s 47%.

Likewise, average wage growth since the start of the pandemic has been lower in high-tax states such as Illinois (13.6%), New York (14.4%) and California (17.2%) than in low-tax Florida (22.5%), Texas (23.3%) and South Dakota (26.9%). If middle-class Americans want to get richer, they ought to move to Miami, Dallas or Sioux Falls.

“As long as we look to legislation to cure poverty, or to abolish special privilege,” Henry Ford once observed, “we are going to see poverty spread and special privilege grow.” That’s the joyous future Americans can expect during a Harris presidency.

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Source: Kamala Harris’s ‘Joyful’ War on Entrepreneurs – WSJ