Today’s Brew 10-27-06

Justin Fox has an interesting commentary or analysis at Time.com:

The path from supply-side economics to deficit spending.

At its core, supply-side economics is the economics that reigned before John Maynard Keynes came along. You could also call it traditional economics, neoclassical economics, or mainstream economics. It assumes that people respond rationally to economic incentives, and unfettered markets arrive at something close to optimal results. Saving, in this worldview, is a good thing–because savings are always put to use in productive investments that make the economy grow.

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Today’s Brew 10-18-06

Larry Kudlow pointing out interesting stuff about JFK:

JFK the Supply-Sider

“Our true choice is not between tax reduction, on the one hand, and the avoidance of large federal deficits on the other…[A]n economy hampered by restrictive tax rates will never produce enough jobs or enough profits…It is a paradoxical truth that tax rates are too high today and tax revenues are too low, and the soundest way to raise revenues in the long run is to cut rates now.” – Democratic President John F. Kennedy in a December 14, 1962 speech at the Economic Club of New York.

(Note: After JFK cut taxes across the board, the inflation-adjusted economy expanded by more than 42 percent over the next seven years. The icing on the cake? During that same period, federal revenues climbed from $94 billion in 1961 to $153 billion in 1968, an increase of 62 percent (33 percent after adjusting for inflation). History is clear – tax cuts do not result in revenue cuts. As we discovered in 1961, 1981, 1997 and 2003, cutting taxes actually increases revenues. Today’s tax-loving Dems might want to take a page out of JFK’s playbook…)

Today’s Brew 10-5-06

Thanks to Larry Kudlow for this:

Schumpeter’s Gales of Creative Destruction

Richard Rahn hit the nail on the head in his Washington Times op/ed earlier this week:

The “real do-gooders,” in the sense that their actions really do alleviate poverty and make life better for their fellow man, are entrepreneurs who create real jobs, goods and services that make our lives better, and those political leaders who have reduced unnecessary regulations and strengthened property rights, such as Margaret Thatcher, Ronald Reagan and Mart Laar (the former Estonian prime minister who led the reforms in his country)…

Governments cannot create jobs; they can only destroy jobs in the private sector by increasing taxation on the productive to create a “new government job.” Many of those who attack Wal-Mart or other business people for not paying “high enough” wages, or the rich for not paying “enough” in taxes, have never created a productive job in their lives, nor have they ever had the imagination or energy to create any new good or service to make our lives better. Yet, they often refer to themselves and are indeed called “do-gooders.” What a perversion of the language.