we need a stable dollar to stop inflationary pressures. And we also need lower tax rates to spur the economy, help it grow, and reduce unemployment. I’ve been calling this the Mundell-Laffer supply-side solution, after Nobel Prize–winning economist Robert Mundell and my mentor, former Reagan advisor Arthur Laffer. It was put to work with great success nearly 30 years ago to stop stagflation. It also launched a 20-year bull-market recovery.Put simply, the Mundell-Laffer model exercises monetary restraint to save the dollar — and low marginal tax rates for economic-growth incentives that benefit investors, risk takers, small businesses, and workers. Right now, for therapy, the Fed should begin moving excess cash from the economy, and they should raise their target rate. Take a page from the Reserve Bank of Australia’s playbook and move rates higher.
In addition, the Treasury ought to get out there and buy these unwanted dollars in the marketplace. Just go out there and bid for them. And they need to stop printing so much debt from Congress. All this massive spending and borrowing is killing us. We need to be slashing tax rates on large and small businesses. There’s just no better place to begin job creation. And leave the Bush tax cuts in place, for heaven’s sake.
This supply-side shock therapy would save the dollar. And it would put real long-term torque into the recovery.
OBAMA IS DOING THE OPPOSITE, AND IT WILL DESTROY THE ECONOMY.
MAYBE THIS IS WHAT HE WANTS - A LA CLOWARD-PIVEN/RAHM "NEVER LET A GOOD CRISIS GO TO WASTE" EMANUEL?
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