A reaction to the Schreiber letter to the NYT sent to IP 7/6

[David Farber <farber () central cis upenn edu>]

Date: Mon, 10 Jul 95 13:46 EST
From: George Gilder <0004091174 () mcimail com>


Schreiber parrots all the commanding canards of the left--that
demand, 66 percent worker's compensation, drives the economy and
that Reagan somehow skewed distribution toward profits, somehow
wasted, and thus is causing depression.  All the facts are wrong,
so naturally the prophecy is wrong too.  Wages did not go down;
they went up, but were channelled increasingly into social security
and medical services, environmental tapeworm and disability comp.
Personal income is up some 25 percent since 1980. Average household
income has stagnated because of a proliferation of households,
single and divorced. Driving economic growth is not workers wages
but entrepreneurial creativity which feeds on profits and small
business earnings that avoid IRS pettifoggery and labor income
statistics.  Meanwhile, the U.S. continues to lead the world in
new job creation.  Of course, the increased taxation of profits
and investment incomes sought by the left will bring all this to
a halt, creating a situation resembling Europe, where no new jobs
have been created in the private sector for almost 20 years and
all the growth is in government consumption.


Best, gg