Your editors have been warning for many years that the Democratic Party has been moving in the direction of the socialist Labor Party of Britain.
Nowadays that might be an improvement.
Here’s why. With Britain mired in a slow growth malaise – with the GDP growth an anemic 0.5% per year, the opposition Labor Party has decided to reject a series of left-wing proposals it made under its then-leader Jeremy Cornyn as recently as 2020.
Rachel Reeves, who would become Treasury Secretary if Labor wins next year’s election, has just promised the party will NOT institute a wealth tax, raise the capital gains tax, or increase the top income tax rate above the current 45 percent. It even promises more homes by relaxing rules on building in the Green Belts that surround British cities. That’s something the ruling Conservatives haven’t done.
Reeves sounds like she’s become a disciple of the Laffer Curve when she declares: I don’t see a route towards having more money for public services [by] taxing our way there. It is going to be through growing our way there.”
Of course, the far left in Britain is furious and accuses the party of favoring “big business & the 1% over ordinary people. Shameful.”
On the one hand, we’re ecstatic over Labor’s apparent embrace of economic reality. But we’re deeply depressed that while Labor in Britain rejects wealth taxes, capital gains taxes, and income tax rate hikes, every single one of these prosperity-killing schemes is widely supported by Democrats in Congress and by Biden.