“Mr. Galston fails to recognize the most important shift in the economy over the last 50 years – the move from free-market-based capitalism with light regulation to crony capitalism with heavy regulation…

…In the past most success went to entrepreneurs and businesspeople who took calculated risks in innovation and increased demand by satisfying the public’s wants faster, cheaper and more conveniently. Today politicians, regulators and bureaucrats wield enormous power and direct wealth and fame to their favored subjects. This granting of rewards to cronies takes many forms such as employment, direct government contracts, legislation, appropriations, tax loopholes, political appointments, regulatory burdens on enemies, acceding to lobbyists’ requests and the special investigation and harassment of enemies. If you’re a Solyndra you get $536 million in Department of Energy loan guarantees, but if you’re a General Motors bondholder, you’re bullied into watching the auto unions get paid off ahead of you.”, Henry M. Dachowitz, CPA, Wall Street Journal Letters’ to the Editor

Letters

We Need a Real Recovery That Includes the Rest of Us

We are an average, middle-class family but we have not seen the touted recovery.

I wholeheartedly agree with William Galston (“The Recovery That Left Out Almost Everybody,” Politics & Ideas, Sept. 24). We are an average, middle-class family but we have not seen the touted recovery. For us every year brings new expenses and challenges. Since my husband was laid off three years ago, we have been limping along. He looked unsuccessfully for nine months and eventually took a job in Florida that paid $40,000 less than he made before. My father was forced into early retirement from his computer analyst job and for his last few months at work had to train his replacement—a contractor from India. Our health-insurance premiums went through the roof.

I fear for the economic future of my children. My 16-year-old is competing with immigrants for a low-paying job to save up for his first car. When he graduates from college, entry-level salaries will be kept low by the highly skilled H1-B visa holders.

The prospects for the middle class are less than rosy. Believe me, I want to feel the immigrants’ pain. I want everyone to succeed. And as Mr. Galston says, the next presidential candidate will have to focus on jobs and the economy, and I’d add that he or she should remember that we Americans have dreams too.

Anna Rollinger

St. Johns, Fla.

Mr. Galston fails to recognize the most important shift in the economy over the last 50 years—the move from free-market-based capitalism with light regulation to crony capitalism with heavy regulation.

In the past most success went to entrepreneurs and businesspeople who took calculated risks in innovation and increased demand by satisfying the public’s wants faster, cheaper and more conveniently. Today politicians, regulators and bureaucrats wield enormous power and direct wealth and fame to their favored subjects.

This granting of rewards to cronies takes many forms such as employment, direct government contracts, legislation, appropriations, tax loopholes, political appointments, regulatory burdens on enemies, acceding to lobbyists’ requests and the special investigation and harassment of enemies. If you’re a Solyndra you get $536 million in Department of Energy loan guarantees, but if you’re a General Motors bondholder, you’re bullied into watching the auto unions get paid off ahead of you.

Members of the hardworking middle class have no one lobbying for them, so they end up with fewer jobs, jobs which pay less and which are often part time with limited benefits. Meanwhile their expenses skyrocket, such as gas prices, college tuition, state and local taxes and health-care costs, when not subsidized by the government.

Imagine the cost savings if regulators worried about real safety hazards and truly corrupt business arrangements rather than effecting social change through EPA and presidential dikta. Taxes could be lowered, capital would efficiently flow into projects yielding positive returns and employment would expand with higher wages as the real economy grew. Who knows, it might help offset the bursting of the stock-market bubble when the Fed stops smothering interest rates.

Henry M. Dachowitz, CPA

New York

Mr. Dachowitz was treasurer of Nassau County, N.Y., from 2002-2006.

Without new and expanding businesses, there are few new jobs. Without new jobs, there is a high jobless rate. With a high jobless rate, there is much competition for the available jobs resulting in little to no wage increase. The solution is easy, and it is not more taxes, bigger government and higher government debt.

We must simply go on a rampage to eliminate regulations and modify surviving regulations to be more business friendly. Although the solution is simple, it won’t happen. There are too many uncaring politicians and special interests to allow such a reform to take place.

Scott J. Engers

Ann Arbor, Mich.

Posted on October 1, 2014, in Postings. Bookmark the permalink. Leave a comment.

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