It is going to be a long weekend, so I made sure there is something to read: The Bush Boom: How a Misunderestimated President Fixed a Broken Economy Foreword by Larry Kudlow, I wonder what could go wrong??
Kudlow is all about tax cuts. It's not surprising to me that he would endorse something like this. He loved the Bush tax cuts. The problem we are facing today is a mismanagement of monetary policy by the passing of the torch from AG to Bernanke. The Bernanke fed is a much different fed. It's very activist, interventionist, and wants full control of financial regulation and markets.
What these guys don't understand is that all type of tax cuts and stimuli reach points of diminishing results. It's not a linear relationship. They could lower taxes to 0% it wouldn't triple GDP.
My next book of choice: Who knows? This knowledge might come handy in the future. The author is a billionaire... http://www.networkworld.com/news/2009/012109-storage-dave-hitz.html?ts
Give tax cuts, money goes everywhere and partially into investments. What they don't realize money that goes into investments, goes into the ones with HIGHEST ROI's That were houses and stocks, so that bubbles formed. Flipping houses to make money. Tax cut led to exacerbated boom. I doubt we would have seen DOW 14k, but DOW 11k was possible without tax cut. Drop DOW 14k to 8k is steeper then 11k to 7k. I'm just wondering, is an exacerbated boom and bust bad? Not as long if you save up for the bad years, because you make moremoney in the good years. Problem is, most Americans didn't. 0% savings rate.