TW: Part 2 of the Kudlow Chronicles, this time he was off on his "goldilocks economy" theme. Due to the mystical power of tax cuts for the wealthy, the housing market was going to keep going up forever etc. Anyone who invests by listening to ideologues or flag wavers is foolish.
From Larry Kudlow's blog at National Review March 11, 2006:
"Despite the grim picture the mainstream media continue to paint about just about everything...there’s one thing they just can’t taint: This U.S. economy remains very healthy...
It’s always amazing to listen to conventional demand-side economic pundits and mainstream reporters who try as hard as they can to minimize the excellent performance of the American economy ever since lower marginal tax-rate incentives were put into place almost two-and-a-half years ago. The latest chant is that..a day of reckoning marked by a housing-price crash and an overwhelming debt burden is headed our way. This is utter nonsense...
Reagan economic guru Art Laffer taught us thirty years ago that lower tax rates ignite economic growth. Now, the Laffer curve is tracking a business-led expansion that is throwing off record budget revenues while corporate profits are soaring. Profits are the mother’s milk of business, the economy, and stocks, and are laying the foundation for even more hefty job gains...
In the months ahead, Ben Bernanke will follow the anti-inflation thinking of Milton Friedman. President Bush will continue to embrace the pro-growth Laffer curve. And the anti-worker Phillips curve will be pushed into the dustbin of history. In other words, economic growth principles will keep American capitalism on the prosperity path."
http://www.nationalreview.com/kudlow/kudlow200603111211.asp
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