The Wall Street Journal has an excellent tradition, going back to 1949, of publishing the following editorial in the issue nearest preceding Christmas:

(excerpt)

In Hoc Anno Domini
December 24, 2005

When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar.

Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so.

But everywhere there was something else, too. There was oppression—for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar?

There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world?

Then, of a sudden, there was a light in the world, and a man from Galilee saying, Render unto Caesar the things which are Caesar’s and unto God the things that are God’s….

And so Paul, the apostle of the Son of Man, spoke to his brethren, the Galatians, the words he would have us remember afterward in each of the years of his Lord:

Stand fast therefore in the liberty wherewith Christ has made us free and be not entangled again with the yoke of bondage.

This editorial was written in 1949 by the late Vermont Royster and has been published annually since.

Pierre Etienne Monnot, St Paul, 1708-18, San Giovanni in Laterano, Rome

The Wall Street Journal has a charming tradition, going back to 1949, of publishing the following editorial in the issue nearest preceding Christmas:

(excerpt)

In Hoc Anno Domini
December 24, 2010

When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar.

Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so.

But everywhere there was something else, too. There was oppression — for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar?

There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world?

Then, of a sudden, there was a light in the world, and a man from Galilee saying, Render unto Caesar the things which are Caesar’s and unto God the things that are God’s….

And so Paul, the apostle of the Son of Man, spoke to his brethren, the Galatians, the words he would have us remember afterward in each of the years of his Lord:

Stand fast therefore in the liberty wherewith Christ has made us free and be not entangled again with the yoke of bondage.

This editorial was written in 1949 by the late Vermont Royster and has been published annually since.

Base price: $143,800, Price, as tested: $172,905, ouch!

The Wall Street Journal recently began adding automobile reviews by Dan Neil to its weekend edition. Neil is not only a hard-core enthusiast, he writes like P.J. O’Rourke after six cups of Jamaica Blue Mountain sweetened with Cardhu.

Screaming into a top-down tornado at 130 mph in the Porsche 911 Turbo Cabriolet, I am reminded—as I’m sure most people are—of Thomas Aquinas.

To wit: When is a thing perfect, complete, finished—when does Porsche drop the paint brush and walk away from the canvas? When will one more stroke diminish the whole?

The medieval philosopher, riffing on Aristotle, argued that a thing is perfect when it lacks nothing (the Greek “teleos,” or completeness, approximates the Latin “perfectio”) and that it ultimately attains its purpose.

Well, man, if this car isn’t there I’ll eat my skullcap. Let’s count it out: 500 hp; 0-60 mph in a forebrain-flattening 3.3 seconds; top speed of 194 mph; a nice even 1 g of lateral grip; all-wheel drive. Throw in a great canvas top and 24 miles per gallon fuel efficiency, and an exhaust note that sounds like the Kraken gargling 50-year-old Glenfiddich, and it begins to appear as if the long history of the Porsche 911 has to come to some sort of immense, satisfying conclusion. I mean, even if you regard this thing as merely a bald-spot delivery system for rich dudes, it does that mission so exceeding well. Aren’t we flirting with the best of all possible sports cars here?

Yes, obviously, a car could always be better. The Turbo Cab could cost $19.95, come with 73 virgins, use the owner’s smugness as a propellent. From its lethal-looking dual exhaust pipes, the Turbo Cab might emit only rainbows and unicorns.

Read the whole thing.

Pierre Etienne Monnot, St Paul, 1708-18, San Giovanni in Laterano, Rome

The Wall Street Journal has a charming tradition, going back to 1949, of publishing the following editorial in the issue nearest preceding Christmas:

(excerpt)

In Hoc Anno Domini
December 24, 2009

When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar.

Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so.

But everywhere there was something else, too. There was oppression — for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar?

There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world?

Then, of a sudden, there was a light in the world, and a man from Galilee saying, Render unto Caesar the things which are Caesar’s and unto God the things that are God’s….

And so Paul, the apostle of the Son of Man, spoke to his brethren, the Galatians, the words he would have us remember afterward in each of the years of his Lord:

Stand fast therefore in the liberty wherewith Christ has made us free and be not entangled again with the yoke of bondage.

This editorial was written in 1949 by the late Vermont Royster and has been published annually since.

The Wall Street Journal has a charming tradition, going back to 1949, of publishing the following editorial in the issue nearest preceding Christmas:

(excerpt)

In Hoc Anno Domini December 23-24, 2006 When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar. Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so. But everywhere there was something else, too. There was oppression — for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar? There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world? Then, of a sudden, there was a light in the world, and a man from Galilee saying, Render unto Caesar the things which are Caesar’s and unto God the things that are God’s…. And so Paul, the apostle of the Son of Man, spoke to his brethren, the Galatians, the words he would have us remember afterward in each of the years of his Lord: Stand fast therefore in the liberty wherewith Christ has made us free and be not entangled again with the yoke of bondage.

This editorial was written in 1949 by the late Vermont Royster and has been published annually since.

The Wall Street Journal has a charming tradition, going back to 1949, of publishing the following editorial in the issue nearest preceding Christmas:

(excerpt)

In Hoc Anno Domini
December 24, 2007

When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar.

Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so.

But everywhere there was something else, too. There was oppression — for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar?

There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world?

Then, of a sudden, there was a light in the world, and a man from Galilee saying, Render unto Caesar the things which are Caesar’s and unto God the things that are God’s….

And so Paul, the apostle of the Son of Man, spoke to his brethren, the Galatians, the words he would have us remember afterward in each of the years of his Lord:

Stand fast therefore in the liberty wherewith Christ has made us free and be not entangled again with the yoke of bondage.

This editorial was written in 1949 by the late Vermont Royster and has been published annually since.

Moveon.org imagines what the Wall Street Journal might look like under the new management of Rupert Murdoch. What’s not to like?

The Wall Street Journal is reporting that

News Corp.’s (i.e. Rupert Murdoch’s) campaign to acquire Dow Jones & Co. inched toward a conclusion, as the two sides reached a preliminary understanding on a framework to protect the editorial integrity of The Wall Street Journal and Dow Jones’s other publications.

What I don’t understand is:

The current editorial perspective of the Wall Street Journal is conservative, Republican, and pro-business. Why would the Journal’s editorial policies need protecting from Rupert Murdoch?

On the other hand, the WSJ’s news reporting is conventionally liberal. So, presumably, the Bancroft heirs, like all good Trustafarians, are liberals, and they are proposing to protect the Journal’s “editorial policy” in the sense of protecting the right of the news board of the Wall Street Journal to report the news from a liberal and democrat perspective, i.e., the polar and complete opposite of the perspective of the WSJ’s editorial board.

Where exactly do those Bancrofts get off believing that they should be able to sell a newspaper (and other publications), and still continue to have some form of control over editorial policy?

And, why is it that newspapers’ “editorial integrity” needs protecting from the conservative Rupert Murdoch, but the so-called editorial integrity of papers like the New York Times presently under ultra-liberal ownership or management (which have been in enormous need of repair for decades) is never treated as an issue?

Eric Felten, in his weekly cocktail column in the Wall Street Journal, supplies the history.

The Tom Collins … got its start in the 19th century, named after a notorious hoax that spread in the summer of 1874.

The original prank went something like this: A friend would run into you on the street and, with great concern, tell you he just overheard someone named Tom Collins at a bar down the street saying hateful and libelous things about you. You race to that bar to confront the bounder, where you would be told that Tom Collins had just left for a bar several blocks away. When you get there, Collins would already have decamped for another joint across town. As you chase all over the city, your friends convulse with laughter.

Soon, not in on the joke, newspapers in cities across the country were reporting on people trying to find the scurrilous fellow. “Tom Collins Still Among Us,” the Decatur, Ill., Daily Republican reported in June 1874. “This individual kept up his nefarious business of slandering our citizens all day yesterday. But we believe that he succeeded in keeping out of the way of his pursuers. In several instances he came well nigh being caught, having left certain places but a very few moments before the arrival of those who were hunting him. His movements are watched to-day with the utmost vigilance.”

When the papers realized it was all a gag, they got in on the act. The Daily Republican kept playing along for months, gamely reporting that Collins had been spotted in San Luis Obispo, Calif., on his way to Arizona. “Next spring,” the paper predicted, Collins “will jauntily enter the South American republics.”

It doesn’t take much to imagine how Tom Collins came to be a drink. How many times does someone have to barge into a saloon demanding Tom Collins before the bartender takes the opportunity to offer him a cocktail so-named? Indeed, you have to wonder if the whole Tom Collins stunt wasn’t a marketing gimmick to promote pub-crawling.

Recipe:

1½ oz gin
Juice of ½ lemon
¼-½ oz simple syrup, or 1-2 tsp. sugar
2-3 oz soda water.
Build on the rocks in a short highball glass (what was once called, appropriately enough, a “Collins glass”). Garnish, if you like, with cherry, and orange or lemon slice.

In response to my recent posting How About a Nice $35 Tomato?, Mr. Robert Humelbaugh posted the following comment:

I’d rather pay higher prices for tomatos, then the taxes I’ll pay when 12 million people, AND thier little bambinos go on welfare, and we pay 50% taxes, on top of all the other tax we pay. They will not bring a net gain to the tax base. They will be a net loss. Who will take it in the teeth?

This precise point was addressed yesterday by the Wall Street Journal’s lead editorial:

The immigration debate is roaring again, and we’re happy to join the fun. One place to start is a myth that has become a key talking point among restrictionists on the right—to wit, that immigrants come to the U.S. for a life of ease on the public dole.

Leading this charge is the Heritage Foundation’s Robert Rector, who argues in a new study that “the average lifetime costs to the taxpayer will be $1.1 million” for each low-skilled immigrant household. Hispanic immigrants and their families are a net national drain, he says, because they “assimilate into welfare.”

Mr. Rector and Heritage have done some good social science research in the past, but this time they have the story backward: In most cases immigrants will pay at least as much in lifetime federal taxes as they receive in benefits.

One basic flaw in the Heritage analysis is that, as a study by the Immigration Policy Center points out: “The vast majority of immigrants are not eligible to receive any of these [welfare] benefits for many years after their arrival in the United States. . . . Legal permanent residents cannot receive SSI [Supplemental Security Income], which is available only to U.S. citizens, and are not eligible for means-tested public benefits until 5 years after receiving their green cards.”

Illegal immigrants are also ineligible for any kind of federal welfare benefits—with the exception of emergency health care. Many of the Congressional proposals to legalize this population would not allow these workers to collect welfare until waiting up to eight years for a green card and five years after that.

The “welfare” charge is also refuted by the experience of the federal welfare reform passed 11 years ago. That law reduced the welfare eligibility of new immigrants on the sensible grounds that the magnet for America should be work, not a government handout. Ron Haskins, an architect of that reform and the author of a 2006 book on its consequences, concludes that “the use of welfare by noncitizens has declined rapidly” in the wake of that law.

Between 1994 and 2004, the percentage of immigrant households collecting traditional cash welfare payments, supplemental security income, and food stamps fell by about half. The decline in welfare use was more rapid for immigrants than for native-born Americans. The exception has been Medicaid, thanks to states that have increased immigrant eligibility for the state-federal program in recent years.

However, immigrants have a positive financial impact on the most expensive federal entitlements: Medicare and Social Security. This is because immigrants generally come when they are young and working. Seventy percent of immigrants are in the prime working ages of 20-54, compared to only half of the native-born American population. Only 2% of immigrants are over 65 when they arrive compared to 12% of natives.

As a result, most immigrants contribute payroll taxes for decades before they collect Social Security or Medicare benefits. The Social Security actuaries recently calculated that over the next 75 years immigrant workers will pay some $5 trillion more in payroll taxes than they will receive in Social Security benefits. These surplus payments more than offset the costs of use of other welfare benefits received by most immigrant groups.

There’s no doubt that immigrants draw on public resources, like the roads and the schools. The latter is mandated by a Supreme Court decision, Plyer v. Doe, and in any event would our society rather have these children in school, or wandering the streets? Even immigrants who don’t own homes, and thus don’t pay property taxes, finance public schools indirectly through rents paid to landlords. As for health care and roads, immigrants who receive paychecks have their income taxes withheld, and they also pay sales tax and other levies like everyone else.

Perhaps most important, immigrant earnings and tax payments rise the longer they are here. According to Census data for 2005, immigrants who have just arrived have median household earnings of $31,930, or about 30% below the U.S. average of $44,389. But those in the U.S. for an average of 10 years have earnings of $38,395; for those here at least 25 years, the figure is more than $50,000. Those earnings wouldn’t be increasing if most immigrants were going on the dole. They are instead assimilating into the work force, growing their incomes as their skills increase.

As Congress debates immigration policy, the Members should keep in mind that the melting pot is still working; that taxes by immigrants cover their use of public services; and that finding a way to let immigrants work in the U.S. legally is the humane and pro-growth solution to the illegal immigration problem.

The Wall Street Journal has a regular Saturday cocktail column by Eric Felten. This week’s edition discusses the Mint Julep.

Felton quotes Walker Percy, who wrote that Juleps

are drunk so seldom that when, say, on Derby Day somebody gives a julep party, people drink them like cocktails.” A proper cocktail is made with a couple of ounces of liquor at most. By contrast, “a good julep holds at least five ounces of Bourbon,” Percy noted. After folks unthinkingly toss back a few Juleps, “men fall face-down unconscious, women wander in the woods disconsolate and amnesic, full of thoughts of Kahlil Gibran and the limberlost.

The Wall Street Journal has a charming tradition, going back to 1949, of publishing the following editorial in the issue nearest preceding Christmas:

(excerpt)

In Hoc Anno Domini
December 23-24, 2006

When Saul of Tarsus set out on his journey to Damascus the whole of the known world lay in bondage. There was one state, and it was Rome. There was one master for it all, and he was Tiberius Caesar.

Everywhere there was civil order, for the arm of the Roman law was long. Everywhere there was stability, in government and in society, for the centurions saw that it was so.

But everywhere there was something else, too. There was oppression — for those who were not the friends of Tiberius Caesar. There was the tax gatherer to take the grain from the fields and the flax from the spindle to feed the legions or to fill the hungry treasury from which divine Caesar gave largess to the people. There was the impressor to find recruits for the circuses. There were executioners to quiet those whom the Emperor proscribed. What was a man for but to serve Caesar?

There was the persecution of men who dared think differently, who heard strange voices or read strange manuscripts. There was enslavement of men whose tribes came not from Rome, disdain for those who did not have the familiar visage. And most of all, there was everywhere a contempt for human life. What, to the strong, was one man more or less in a crowded world?

Then, of a sudden, there was a light in the world, and a man from Galilee saying, Render unto Caesar the things which are Caesar’s and unto God the things that are God’s….

And so Paul, the apostle of the Son of Man, spoke to his brethren, the Galatians, the words he would have us remember afterward in each of the years of his Lord:

Stand fast therefore in the liberty wherewith Christ has made us free and be not entangled again with the yoke of bondage.

This editorial was written in 1949 by the late Vermont Royster and has been published annually since.

Mr. Joseph Rago, the assistant editorial features editor of the Wall Street Journal, yesterday attacked bloggers, putting the lot of us in our place with a quotation from Joseph Conrad written by fools to be read by imbeciles, originally intended by Conrad to apply to newspapers.

Jerry Jackson, the Chicago Sun Times’ Wednesday conservative editorialist, responds to Lanny Davis’ recent Wall Street Journal editorial which expressed surprise at finding so much “scary hatred” (aimed at Joe Lieberman) emanating from the left. (Lanny is a red-diaper baby, named after Upton Sinclair’s “progressive” agent Lanny Budd.) Scary hatred, in Lanny Davis’s view is a natural monopoly of the political right.

When I discuss Rush (Limbaugh) and others with some of my liberal friends, they all repeat the same worn out phrases. He (Rush) is full of hate, cuts people off if they disagree and in general spews vitriol against liberals. I then ask them if they ever listen to Rush, and to a person they always answer “of course not, but I know all these things because I read about him and hear these comments from my friends”.

Rush maintains an audience of somewhere between 20-25 million people because he delivers a quality program with lots of good humor and bases his comments on considerable research. He encourages calls from those that disagree and some days takes calls only from those who have a different philosophy.

Does Rush make fun of the liberals and make their immature ideas sound ridiculous? Absolutely. Does he do research to prove their talking points are without logic? You bet! Does he use vulgar phrases and emit hate in every word? Never.

For years now the progressives have tried to offset Rush with their own left leaning performers, and they went through a number of lefties that bombed on the air. Those have included Mario Como, Hightower, Al Gore and many others.

A few years ago the lefties thought they had the answer, and with enormous financial backing from such stalwarts as George Soros, created a whole network to feature the left and called it Air America. This network is 24 hours a day of Bush bashing, hate, vulgarity and out and out stupidity. Since I criticize the Limbaugh bashers who have never heard his program, I felt it was my duty to listen to Air America. I have done so over a period of about three months and here are some comments from just two 90- minute sessions:

1) “The entire Bush crime family should be executed.”

2) “George Bush is a g.d. lying s.o.b.” (by the host) There was no use of initials in this quote.

3) “Bush and Cheney are gleefully causing gas prices to go sky high to benefit their big oil friends.”

4) “Why didn’t Cheney turn the shotgun on himself after he wounded his friend?” (by the host)

5) “The Bush Administration planned and executed 9-11.”

6) “Rumsfeld should be hung by his thumbs and subjected to all the torture that was given to the alleged insurgents.”

7) “The Bush government purposely did not capture bin Laden because they wanted an excuse to go to war.” (by the host)

8) “We can hope that the insurgents will get information on Bush’s travel plans so they can shoot down his airplane.”

9) “Bush and the government planted explosives in the World Trade Center and that’s why the Twin Towers collapsed.”

On this latter point one of the hosts asked how this could be so since we all saw the airplanes fly into both towers. The answer to this was simple. One of the listeners explained that this was a conspiracy between Bush and the major TV networks. Through trick technology they transposed these airplanes onto the TV screens to fool all America – and on and on and on.

So these are all the peace loving, tolerant, well educated and so informed progressives and liberals that are trying to redirect America. If the subject wasn’t so serious, it could be great comedy. If you want something to keep you up at night, these patriots with their brilliance and liberal elite-ness vote in all the local and national elections.

The good news is that Air America is having a very tough time staying afloat. They have lost their radio outlets in New York and several other major markets. This network cannot raise enough advertising dollars to promote this brand of vicious propaganda. Eventually George Soros and other sponsors will no doubt tire of funding such trash and they will be required to compete in the free market.

The Wall Street Journal celebrates the twenty fifth anniversary of Ronald Reagan signing the Economic Recovery Tax Act by noting the significance of the impact of Reagonomics on the US and World economies and the breadth of his philosophy’s current acceptance. Russia today has a 13% flat tax.

Twenty-five years ago this weekend, Ronald Reagan signed the Economic Recovery Tax Act. The bill cut personal income tax rates by 25% across the board, indexed tax brackets for inflation and reduced the corporate income tax rate. The anniversary is worth commemorating as a seminal moment that continues to influence policy for the better in the U.S., and around the globe.

The achievement of Reaganomics can only be fully understood by recalling the miserable state of affairs a quarter-century ago. Newsweek summarized the national mood when it wrote in 1981 that Reagan “inherits the most dangerous economic crisis since Franklin Roosevelt took office 48 years ago.”

That was no exaggeration. The economy was enduring a cycle of rising inflation with growing levels of unemployment. Remember 20% mortgage interest rates? Terms like “stagflation” and “misery index” entered the popular vocabulary, and declinists of various kinds were in the saddle. The perception of American economic weakness encouraged the Soviet empire to ever bolder adventures, as reflected by Soviet tanks in Kabul and Communists on the march in Nicaragua and Africa.

The reigning Keynesian policy consensus had no answer for this predicament, and so a new group of economic ideas came to the fore. Actually, they were old, classical economic ideas that were rediscovered via the likes of Milton Friedman and the Chicago School, Arthur Laffer, Robert Mundell, and such policy activists in Washington as Norman Ture and Jack Kemp, among others. These humble columns under our late editor, Robert Bartley, led the parade.

For every policy goal, you need a policy lever, Mr. Mundell likes to say. Monetary restraint was needed to break inflation, while cuts in marginal tax rates would restore the incentives to save and invest. With Paul Volcker at the Federal Reserve and Reagan at the White House, those two levers became the essence of the “supply-side” policy mix.

The results have been better than even some of its supporters hoped. The Dow Jones Industrial Average first broke 1,000 in 1972, but a decade later it was barely above 800—one of the worst and most enduring bear markets in history. In the 25 years since Reaganomics, however, the Dow has climbed to about 11,000, accounting for an increase in national wealth on the order of $25 trillion. To match that increase in percentage terms, the Dow would have to rise to some 150,000 in the next quarter century. American living standards have risen steadily, and U.S. businesses have created entire industries that didn’t exist a generation ago…

Adherents of Rubinomics—after Clinton Treasury Secretary Robert Rubin—are still not converts, arguing that tax increases are virtuous if they reduce the deficit. We’ve addressed that argument many times and will again. But even the Rubinites haven’t dared to repeal indexing for inflation (which pushed taxpayers via “bracket creep” into ever-higher tax rates), and even the most ardent liberals don’t propose to return to the top pre-Reagan income tax rate of 70%. They also now understand that, at some point along the Laffer Curve, high rates begin to yield less tax revenue. The bipartisan consensus in favor of sound money has also held.

Thus today, the top marginal personal and corporate tax rates are 35%, compared with 70% and 48% in 1981. In the late 1970s the tax on dividends was 70% and the capital gains rate was 50%; now they’re both 15%. These reductions have increased the rate of return on capital, and hence some $3 trillion more was invested by foreigners in the U.S. between 1981 and 2005 than was invested by Americans abroad. One result: 40 million new jobs, more than the rest of the industrialized world combined.

The rest of the world, meanwhile, has followed the Gipper down the tax-cut curve. Daniel Mitchell of the Heritage Foundation finds that the average personal income tax rate in the industrialized world is now 43%, versus 67% in 1980. The average top corporate tax rate has fallen to 29% from 48%. This decline in global tax rates has been the economic counterpart to the fall of the Berlin Wall. Most of Eastern Europe has adopted flat tax rates of 25% or lower, and the Russians now have a flat income tax of 13%. In Old Europe, Ireland’s corporate and personal income tax rate cuts have helped generate the swiftest economic growth in the EU.

Not bad for a President dismissed as a dreamy former actor. In his 1989 farewell address, Reagan said that “People say that I was a great communicator. It would be more accurate to say that I communicated great ideas.” He was right, and a remarkable global prosperity has followed in his wake. The challenge for current and future political leaders is not to forget it.