Monday, January 14, 2008
The GOP's supply-side is showing
Larry Kudlow says, at long last, "supply-side policy prescriptions are top of mind" for the GOP's presidential candidates. Funny, but that's exactly what I told 'em to do:
"In times of slow economic growth, the government should focus its fiscal policy on removing barriers to investment. That's precisely what President Bush and the Republican Congress did in 2003 when they passed bold measures to reduce taxation. The Bush/GOP fiscal package to eliminate the double-taxation of corporate dividends and his slashing of marginal tax rates was a good start. However, accelerating depreciation schedules, lessening the tax burden on businesses, and slashing marginal tax rates again would help even more as the economy shows signs of significant slowing.
"American consumers, who are becoming increasingly skittish due to high energy prices and the home mortgage mess, have been signaling for months that the current mix of investment is not generating what they want. Thus, financial and human capital must be redirected to new uses. This redirection will happen more rapidly if President Bush and Republicans ignore the new dance of the crackpots happening in the current Democratic presidential field and push hard for additional supply-side stimulus in the economy."
"In times of slow economic growth, the government should focus its fiscal policy on removing barriers to investment. That's precisely what President Bush and the Republican Congress did in 2003 when they passed bold measures to reduce taxation. The Bush/GOP fiscal package to eliminate the double-taxation of corporate dividends and his slashing of marginal tax rates was a good start. However, accelerating depreciation schedules, lessening the tax burden on businesses, and slashing marginal tax rates again would help even more as the economy shows signs of significant slowing.
"American consumers, who are becoming increasingly skittish due to high energy prices and the home mortgage mess, have been signaling for months that the current mix of investment is not generating what they want. Thus, financial and human capital must be redirected to new uses. This redirection will happen more rapidly if President Bush and Republicans ignore the new dance of the crackpots happening in the current Democratic presidential field and push hard for additional supply-side stimulus in the economy."
# posted by Joltin' Django @ Monday, January 14, 2008 
