Monday, August 9, 2010

Monday update.

Editor's note: Due to travel I've been unable to post in recent days, but have caught up tonight. Sorry for any inconvenience.

Business Week reports Robert Mundell is glad to see the euro up against the dollar from its summer low of $1.18.

John Tamny notes that low taxes are necessary to prosperity, but are ineffectual when paired with a weak and unstable dollar.

On The Kudlow Report, Steve Moore discusses demand vs. supply-side economics.

The Heritage Foundation's Brian Riedl responds to critics of his claim that tax cuts did not drive the large budget deficit.

Heritage also offers a chart on employment targets vs reality.

Keynesian Joseph Stiglitz advocates a new round of spending stimulus.

Washington Post columnist Robert J. Samuelson sees low birth rates as a threat to economic security.


  1. On Kudlow, Robert Reich may have just got his point across in strong enough language to make some people listen. Sooner or later they are going to come to understand that if they don't listen then they are just cutting their noses off to spite their faces. The problem is obviously with the failing demand side. If the people are not enabled then it just can't work without them.

    Does the Republican party 'really' want to risk bringing the country down in order to regain power? Their agenda has now become just too shamefacedly obvious. Stop it now!

  2. This is the eternal debate -- which comes first, production or consumption?
    In the supply-side view, production is primary. As John Tamny often says, we produce in order to consume.
    Demand declines because production is blocked, generally due to fiscal or monetary policy error, leading to fear among entrepreneurs, investors, and consumers.
    In the current case, investors and entrepreneurs are sidelined by an unstable currency and prospective tax rate increases. Stabilize the dollar, keep taxes low, and producers will return from the sidelines. Consumption will rise as jobs and growth return.