Capitalism under Trump lifts poor people out of poverty and out of government dependency

Star Parker:

President Trump’s achievements for black Americans are registering in awareness in these communities. It’s a subject of enormous importance not just because of what the president is doing to the benefit of low-income Americans, but also because of how he is doing it — his approach to lifting up those not participating as they should in our prosperity.

First and foremost, the American economy needed to grow. And we needed to make sure that all Americans participate and contribute. It appears that in 2018, because of the Trump tax cuts and deregulation, the U.S. economy will have its first year of 3-percent growth in over a decade.

Black unemployment, 5.9 percent, and white unemployment, 3.4 percent, are at historic lows. And the gap between black and white unemployment has dramatically shrunk, showing that blacks are, in an unprecedented way, participating in the economic recovery.

Looking at unemployment data from 1979 to 2016, the Federal Reserve Bank of San Francisco reports that during economic expansions, black unemployment averages 6.4 points higher than white unemployment. During economic contractions, black unemployment averages 6.9 points higher than white.

The latest data shows black unemployment just 2.6 points higher than white.

Hoover Institution’s John Cochrane notes that if growth averages 3 percent annually over the next 30 years, rather than 2 percent, average income per person will be 35 percent higher.

So, of highest importance was getting the American growth engine restored, and this is happening to the benefit of every American. However, black communities have unique problems. A difficult, often brutal, history has placed too many African-Americans on the sidelines.

The approach of this administration is to seek opportunities to inject economic vitality into our hardest hit communities.

Trump just issued an executive order establishing the White House Opportunity and Revitalization Council. This council will set into motion the implementation of a provision in the 2017 tax bill establishing economic Opportunity Zones.

Governors in the 50 states were asked to identify their most economically distressed ZIP codes, neighborhoods where, for instance, poverty stands at twice the national average, to qualify as Opportunity Zones. More than 8,700 ZIP codes have been designated, and they qualify for tax-preferred investment that, by estimates from the Treasury department, could amount to $100 billion.

This is all private investment, which can flow into these troubled areas, that because of preferred tax treatment — forgiveness of capital gains taxes — would not otherwise be made.
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The problem with Democrats is that they would prefer that the government grab this money and then redistribute it creating greater dependency.  That is what Alexandria Ocasio-Cortez wants to do by raising the marginal tax rate on top earners to 70 percent.   We already know this does not work and all you have to is look at inner cities like Detroit to see the disastrous effects of these policies. 

BTW, her followers responded rudely to Steve Scalise when he challenged her on this plan with some even suggesting the Democrat who tried to kill Scalise should have been a better shot.  AOC appears to be ignorant of the results of the policies she supports.