Democrats don’t trust free markets, preferring to use the power of government to control the economy. And they don’t understand basic laws of supply and demand. Appearing on CNN this morning, New York Governor Andrew Cuomo gave a good illustration of that distrust and ignorance.
Cuomo kvetched about the reduction in the corporate tax rate contained in the tax bill. He claimed that the bill wound up being a benefit to the rich corporations, and that:
“[Republicans] hope the rich corporations will then give it to the workers as a matter of their largesse. But if they actually wanted to raise wages for workers, they would have said in the bill, the corporation’s going to get a tax cut, but they must give it to the workers.”
Let’s try to explain this for the good governor. To raise worker wages, Republicans are counting on the laws of supply and demand, not corporate “largesse.” Thanks to the tax cut, corporations will have more money available. And when they invest that money to expand their businesses, many companies will need more workers.
When the demand for labor increases, the laws of supply and demand say that price of labor—wages in this case—also increase. Got that, Andy?
Later in the interview, Cuomo also undercut the independence of the judiciary. He claimed that there were “legitimate grounds” to challenge the legality and constitutionality of the tax bill.
But Cuomo then added this zinger: “if [Republicans] own the courts, it might be harder.” Did Dems “own the courts” when Dem presidents were appointing judges, or does that principle only apply to Republicans, guv?