From Bush to Obama

George W. Bush’s first term in office was positive and began with the advantage that his predecessor in the White House, Bill Clinton, had agreed to tax a reduction on dividends in 1997. The best part is not that it saves money for the rich, but rather the rich invest more, allowing them to create new job posts. An increase in employment in the private sector benefits everyone while with an increase in governmental employment, we all end up paying their salaries with our own taxes.

In 2001, Bush signed another tax reduction for rent that reduced the rate to a minimum of 10 percent and a maximum rate from 39.6 percent to 35 percent, which suddenly led to more economic activity, better creation of jobs, and, to many people’s surprise, an increase in total tax collection. The bad thing is that after 2003, government spending shot up and, parallel to that, so did the fiscal deficit.

People know that if you spend more than you make you end up sinking in misery, but politicians don’t spend their own money – instead they spend our money. Deplorably, the excessive spending of the government creates mistrust in the dollar and the economy, which rapidly leads to less investment and greater unemployment. The actual rate of unemployment is currently 9.4 percent, the highest rate in the United States since 1983.

Although his brother Jeb Bush is married to a Mexican woman, G. W. Bush was not very friendly with Latin America. In June 2006, then Sen. Obama (together with Republican Sen. Charles Grassley) attempted to simplify the regulations in hiring foreign workers, but the Bush administration opposed it, while at the same time limiting the authorization of foreign workers, and they did not make any headway in regulating the residence of some 20 million undocumented foreigners.

President Obama’s openness towards the rest of the world starts off positively: he just had a friendly visit to the Middle East. And his Secretary of State, Hillary Clinton, published a very widespread column in Latin America demonstrating new ties to the rest of the continent, which is something that hasn’t been seen since 2002 when Otto Reich (born in Cuba, and who I had the pleasure of meeting when I was an ambassador in Venezuela) occupied the post of Sub-secretary of State for Western Hemispheric Affairs for 11 months.

I do question a statement made by Mrs. Clinton: “Free and fair trade, united for greater inclusion, benefits all of us.” Free and fair is redundant. Free signifies that it is “fair.” What is unjust is when governments intervene to impede free trade between people and businesses from different countries in order to bestow privileges and protection to certain and determined industries or syndicates with influence in the government.

Regarding the budget deficit of President Obama’s first year in office, it’s better to talk about it rather than to cry.