Stick to classic economic principles

Critics of tax reform and government policies that reduce corporate taxes, reduce taxes on individuals and provide greater economic freedom for individuals ignore the history of economic growth provided by these classic economic principles.

Those who embrace so called "progressive" economic principles that raise corporate and individual taxes, raise government spending, and reduce individual economic freedom, ignore the history of economic stagnation they provide. Economist Robert Genetski does a marvelous job of explaining and documenting these facts in his book "Rich Nation, Poor Nation." He also points out that while free markets do produce wage and wealth disparity, any efforts to reduce that wealth gap through progressive economic policies that tax the rich and heavily restrict free market activity do little to reduce the disparity and generally result in less wealth for all socio-economic classes.

The wealth gap is more of a by-product of the types of jobs an individual must accept based on education, training and skills. Low-skill jobs provide lower wages than skilled labor positions. Cost of living increases and raises in low-skill jobs provide incrementally less disposable income than skilled-labor occupations. The resulting wealth gap, as measured in dollars, continues to increase (simple compounding) for as long as the unskilled laborer remains an unskilled laborer.

Also, unskilled jobs cannot be forced to provide greater salaries through government wage intervention. History demonstrates these efforts are ineffective. Rather, government and the private sector should strive to provide the education training and life skills necessary so that individuals may compete effectively for higher-salaried skilled-labor jobs. Then, individuals can increase their wages to a higher base from which cost of living raises and promotions produce incrementally more money to spend, save and invest.

Peter Gennuso

Schaumburg,