From Forbes, Brian Domitrovic explains the weak dollar caused the real estate bubble.
In The NY Sun, Ira Stoll notes the problems for savers with zero interest rates.
At RCM, John Tamny suggests there’s nothing wrong with China’s new trade deficit.
On The Kudlow Report, John Rutledge discusses the US’s tough trade stance towards China:
At TGSN, Ralph Benko highlights Jacques Rueff’s analysis of the monetary errors that led to the Great Depression.
In The Washington Times, Richard Rahn argues the world economy’s future is bearish.
From Alhambra Partners, Joe Calhoun expresses pessimism about the economy.
At Hindu Business Line, G. Ramachandran links Robert Mundell’s euro to the Roman Empire.
On The WSJ, Paul Gigot discusses Newt Gingrich’s prospects in the southern primary states:
On Econlog, David Henderson disputes Louis Woodhill’s analysis of gold and oil.
In The NYT, Bruce Bartlett advocates higher tax rates to raise more revenues.
Showing posts with label Rutledge. Show all posts
Showing posts with label Rutledge. Show all posts
Wednesday, March 14, 2012
Tuesday, December 20, 2011
Tuesday summary: Reynolds on unemployement benefits; Benko reports conservative support for monetary reform; Rutledge on North Korea.
From Forbes, Alan Reynolds argues shortening unemployment benefits' duration would lower unemployment and help the President’s re-election prospects.
On TGSN, Ralph Benko highlights conservative leaders’ support for sound money.
At Forbes, Charles Kadlec applauds and critiques the recent Bank of England report on Bretton Woods.
On The Kudlow Report, John Rutledge suggests North Korea may liberalize under its new leadership:
From The Washington Times, Richard Rahn rebuts Keynesian claims on government spending.
In USA Today, Mitt Romney opposes the European-style nanny state.
At The WSJ, Jason Riley notes that Romney’s 25% support is healthy for this stage of a primary contest.
In The NYT, Joe Nocera suggests GSEs were not responsible for the real estate bubble.
From Alhambra Partners, Joseph Calhoun analyzes the economies of Europe, Asia and the US.
On Fox, Steve Forbes debates EPA regulations:
In The Washington Post, Charles Lane challenges the President’s income inequality claims.
From The NYT, Bruce Bartlett argues cutting the corporate tax rate won’t improve the economy.
At COAL, Paul Krugman wonders if China’s real estate bubble is bursting.
On TGSN, Ralph Benko highlights conservative leaders’ support for sound money.
At Forbes, Charles Kadlec applauds and critiques the recent Bank of England report on Bretton Woods.
On The Kudlow Report, John Rutledge suggests North Korea may liberalize under its new leadership:
From The Washington Times, Richard Rahn rebuts Keynesian claims on government spending.
In USA Today, Mitt Romney opposes the European-style nanny state.
At The WSJ, Jason Riley notes that Romney’s 25% support is healthy for this stage of a primary contest.
In The NYT, Joe Nocera suggests GSEs were not responsible for the real estate bubble.
From Alhambra Partners, Joseph Calhoun analyzes the economies of Europe, Asia and the US.
On Fox, Steve Forbes debates EPA regulations:
In The Washington Post, Charles Lane challenges the President’s income inequality claims.
From The NYT, Bruce Bartlett argues cutting the corporate tax rate won’t improve the economy.
At COAL, Paul Krugman wonders if China’s real estate bubble is bursting.
Tuesday, July 5, 2011
Tuesday update: Malpass and Moore on capital outflow; Domitrovic on unproductive investment; Benko on gold enthusiasm on the campaign trail.
From The WSJ, David Malpass and Stephen Moore note the outflow of investment capital from the US.
On Forbes, Brian Domitrovic explains that the weak dollar has shunted trillions of dollars out of productive investment into unproductive assets such as commodities.
At Forbes, Ralph Benko reports on gold standard enthusiasm on the campaign trail.
On The Kudlow Report, John Rutledge discusses the stock market and the economy:
At International Liberty, Cato’s Dan Mitchell provides three simple rules for tax reform.
The WSJ applauds the Greek government’s leading supply sider.
From Forbes, Lawrence Hunter links the increase in social welfare spending with the decline in net private investment.
On RCM, John Tamny reviews Tim Harford’s Adapt.
At NRO, Mario Loyola notes the folly of soaking the rich.
Also on Kudlow, Stephen Moore and Sen. Rob Portman (OH) discuss the debt and taxes:
TGSN features videos of Lew Lehrman discussing the gold standard.
In The NYT, Bruce Bartlett reveals that Margaret Thatcher’s conservative revolution merely slowed the growth of Britain’s government.
From Bloomberg, Keynesian Brad DeLong argues the US is in a liquidity trap and requires big government spending stimulus to get out.
On Forbes, Brian Domitrovic explains that the weak dollar has shunted trillions of dollars out of productive investment into unproductive assets such as commodities.
At Forbes, Ralph Benko reports on gold standard enthusiasm on the campaign trail.
On The Kudlow Report, John Rutledge discusses the stock market and the economy:
At International Liberty, Cato’s Dan Mitchell provides three simple rules for tax reform.
The WSJ applauds the Greek government’s leading supply sider.
Mr. Samaras is calling for a cut in the Greek corporate income tax to 15% from 24%, along with cuts in the personal income-tax rate and taxes on fuel and tourism. In yesterday's interview he argues that lower rates would ease Greece's rampant tax-evasion problem while unleashing the creativity of the private sector. Sounds about right to us. As long as Mr. Samaras is looking for unorthodox ideas, we'd commend to his attention economist Steve Hanke's proposal, outlined on these pages last year, to sharply cut payroll taxes on employers to reduce labor costs and spur job creation. Greece's labor costs have soared over the past decade under union pressure, and those uncompetitive wages are a big part of Greece's sluggish economy.
From Forbes, Lawrence Hunter links the increase in social welfare spending with the decline in net private investment.
On RCM, John Tamny reviews Tim Harford’s Adapt.
At NRO, Mario Loyola notes the folly of soaking the rich.
Also on Kudlow, Stephen Moore and Sen. Rob Portman (OH) discuss the debt and taxes:
TGSN features videos of Lew Lehrman discussing the gold standard.
In The NYT, Bruce Bartlett reveals that Margaret Thatcher’s conservative revolution merely slowed the growth of Britain’s government.
From Bloomberg, Keynesian Brad DeLong argues the US is in a liquidity trap and requires big government spending stimulus to get out.
Tuesday, June 7, 2011
Tuesday summary: Domitrovic contextualizes the recovery; Tamny on the weak dollar; Rutledge sees China inflation as a warning for the U.S.
From Forbes, Brian Domitrovic contextualizes the current recovery's extraordinarily slow growth.
On RCM, John Tamny argues the weak dollar is responsible for the economy’s weakness.
At Forbes, John Rutledge sees China’s inflation as a warning for the U.S.
On The Kudlow Report, Republican candidate Tim Pawlenty highlights his pro-growth message:
The Washington Post notes the President’s softening poll numbers and Mitt Romney’s rise.
From NRO, Kevin Williamson responds to critiques of his focus on austerity versus growth by arguing we need both.
On RCM, Steve Forbes discusses the dollar and gold:
From Bloomberg, Amity Schlaes challenges Paul Krugman’s view of 1937’s recession within the depression.
At The NYT’s Economix blog, Bruce Bartlett suggests U.S. taxes are similar to Western European nations when healthcare costs are included.
In The Washington Post, Glenn Kessler challenges the President on the auto bailouts’ success.
On RCM, John Tamny argues the weak dollar is responsible for the economy’s weakness.
At Forbes, John Rutledge sees China’s inflation as a warning for the U.S.
On The Kudlow Report, Republican candidate Tim Pawlenty highlights his pro-growth message:
The Washington Post notes the President’s softening poll numbers and Mitt Romney’s rise.
From NRO, Kevin Williamson responds to critiques of his focus on austerity versus growth by arguing we need both.
On RCM, Steve Forbes discusses the dollar and gold:
From Bloomberg, Amity Schlaes challenges Paul Krugman’s view of 1937’s recession within the depression.
At The NYT’s Economix blog, Bruce Bartlett suggests U.S. taxes are similar to Western European nations when healthcare costs are included.
In The Washington Post, Glenn Kessler challenges the President on the auto bailouts’ success.
Sunday, May 15, 2011
Weekend update: Lewis on the euro; Calhoun on the post-QE2 dollar; Rutledge on inflation.
From Forbes, Nathan Lewis explains why Europe is better off with a single currency.
On RCM, Joe Calhoun suggests the dollar’s post-QE2 rise will lead to stronger U.S. growth.
At The WSJ, Art Laffer and Stephen Moore report the population shift from forced union states to right-to-work states.
On The Kudlow Report, John Rutledge sees inflation picking up:
From Forbes, Peter Ferrara continues his comparison of Reaganomics with Obamanomics.
On Forbes, Rich Karlgaard explains the importance of economic growth.
At Forbes, Reuven Brenner links the mortgage crisis to government’s interference in credit markets.
On Kudlow, James Pethokoukis and Deroy Murdock discuss the debt limit:
At The Washington Post, Karen Hube recounts the benefits to average families of tax expenditures (h/t: Vlad Signorelli).
The NY Daily News reports that young New Yorkers say they will leave the city due to high taxes and unemployment.
On RCM, Joe Calhoun suggests the dollar’s post-QE2 rise will lead to stronger U.S. growth.
At The WSJ, Art Laffer and Stephen Moore report the population shift from forced union states to right-to-work states.
On The Kudlow Report, John Rutledge sees inflation picking up:
From Forbes, Peter Ferrara continues his comparison of Reaganomics with Obamanomics.
On Forbes, Rich Karlgaard explains the importance of economic growth.
At Forbes, Reuven Brenner links the mortgage crisis to government’s interference in credit markets.
On Kudlow, James Pethokoukis and Deroy Murdock discuss the debt limit:
At The Washington Post, Karen Hube recounts the benefits to average families of tax expenditures (h/t: Vlad Signorelli).
The NY Daily News reports that young New Yorkers say they will leave the city due to high taxes and unemployment.
Sunday, April 17, 2011
Weekend update: Hanke on the weak dollar; Lewis on gold's stability; Rutledge discusses China.
In Globe Asia, Cato’s Steve Hanke explains the problems caused by the weak dollar.
From New World Economics, Nathan Lewis argues gold’s value is fundamentally stable (part two, here.)
Heritage’s David Weinberger addresses income inequality.
On The Kudlow Report, John Rutledge discusses China growth and inflation:
In The Washington Post, routed presidential contender Walter Mondale congratulates the President for advocating tax increases.
From Reuters, James Pethokoukis reports the President’s deficit proposal may be heavily slanted towards higher tax rates.
At Capital Games and Games, Pete Davis notes the high taxes U.S. multinationals pay compared to their competition.
In The WSJ, former Sen. Phil Gramm (TX) explains the historically slow rate of growth under President Obama.
On Forbes, Peter Ferrara analyzes the President’s budget proposal.
On Kudlow, James Pethokoukis debates the President's tax increase proposal:
At Forbes, Reuven Brenner advocates renewed focus on leveraging America’s talent.
With this weekend's release of the Atlas Shrugged film, here’s an apropos quote from the book:
Washington Post columnist Charles Krauthammer notes that tax reform will allow the top tax rate to fall to 28 percent or less.
In The WSJ, David Beito recounts the tax revolt of the 1930s.
At Forbes, John Tamny argues college education is overrated.
On NRO, George Cassidy explains the role of high tax rates on the Beatles’ break up.
From New World Economics, Nathan Lewis argues gold’s value is fundamentally stable (part two, here.)
Heritage’s David Weinberger addresses income inequality.
On The Kudlow Report, John Rutledge discusses China growth and inflation:
In The Washington Post, routed presidential contender Walter Mondale congratulates the President for advocating tax increases.
From Reuters, James Pethokoukis reports the President’s deficit proposal may be heavily slanted towards higher tax rates.
At Capital Games and Games, Pete Davis notes the high taxes U.S. multinationals pay compared to their competition.
In The WSJ, former Sen. Phil Gramm (TX) explains the historically slow rate of growth under President Obama.
On Forbes, Peter Ferrara analyzes the President’s budget proposal.
On Kudlow, James Pethokoukis debates the President's tax increase proposal:
At Forbes, Reuven Brenner advocates renewed focus on leveraging America’s talent.
With this weekend's release of the Atlas Shrugged film, here’s an apropos quote from the book:
"Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values... Paper is a mortgage on wealth that does not exist, backed by a gun aimed at those who are expected to produce it. Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked: 'Account Overdrawn.'"
Washington Post columnist Charles Krauthammer notes that tax reform will allow the top tax rate to fall to 28 percent or less.
In The WSJ, David Beito recounts the tax revolt of the 1930s.
At Forbes, John Tamny argues college education is overrated.
On NRO, George Cassidy explains the role of high tax rates on the Beatles’ break up.
Tuesday, February 1, 2011
Tuesday round up.
At Forbes, James K. Glassman explains that stronger growth is the best way to fight the deficit.
From Alhambra Investments, Joe Calhoun sees the world's leaders as clueless.
On The Kudlow Report, Don Luskin relies on CPI to deny inflation, while Michael Pento relies on money supply to confirm it:
On RCM, John Tamny argues inflation – properly defined as a decline in the monetary standard – is here but hidden by government statistics.
At Forbes, Brian Domitrovic suggests stable money is the kindest method to help the poor and less educated.
Also on Kudlow, John Rutledge and David Goldman assess inflation’s impact on emerging markets:
At Gold Standard Now, Domitrovic responds to Paul Krugman’s gold standard claim.
From Commentary, James Pethokoukis critiques Ben Bernanke’s approach.
In The WSJ, EU official Mojmir Haml outlines post-crisis thinking on monetary policy, but omits a stable gold price from his analysis:
In a NYT interview, White House advisor Gene Sperling confirms that the deal to maintain the Bush tax rates raised growth expectations, but omits the dollar from the discussion.
In The Washington Times, David Malpass advocates a constitutional amendment to cut the deficit.
From 1982, Jude Wanniski opposes a balanced budget amendment.
The WSJ editorializes in favor of allowing college educated immigrants to stay in the U.S.
From Alhambra Investments, Joe Calhoun sees the world's leaders as clueless.
On The Kudlow Report, Don Luskin relies on CPI to deny inflation, while Michael Pento relies on money supply to confirm it:
On RCM, John Tamny argues inflation – properly defined as a decline in the monetary standard – is here but hidden by government statistics.
At Forbes, Brian Domitrovic suggests stable money is the kindest method to help the poor and less educated.
Also on Kudlow, John Rutledge and David Goldman assess inflation’s impact on emerging markets:
At Gold Standard Now, Domitrovic responds to Paul Krugman’s gold standard claim.
From Commentary, James Pethokoukis critiques Ben Bernanke’s approach.
In The WSJ, EU official Mojmir Haml outlines post-crisis thinking on monetary policy, but omits a stable gold price from his analysis:
Back in 1978, the U.S. economic historian Charles Kindleberger, in his now classic book "Manias, Panics, and Crashes: A History of Financial Crises," pointed out that financial upheavals had almost always been preceded by credit and property price booms. The bad news for monetary policy, however, is that credit booms have not always led to crisis. In other words, we still lack a rule of thumb for the future.From Business Insider, U.S. Rep. Ron Paul (TX) predicts it will take a crisis to bring about monetary reform.
The basic proposition about the importance of credit, asset prices and the extent of financial intermediation in the economy, is slowly establishing itself in central bankers' post-crisis thoughts—although so far only at the general intuitive level described above. As soon as we start to ask when exactly, and at what level, the rate of growth of credit aggregates or asset prices start to become risky, or how large a leverage ratio and how high a risk mark-up are sustainable, we have no clear answers.
Moreover, we are frequently asking fundamental questions that we thought we had already answered: What prices should we actually target? How should we define new price indexes? Hacking at the foundations like this is painful in any field of study. Try asking a monetary expert for a precise definition of money. Where does money start and end? The layman may be surprised to learn that the answer is not necessarily clear cut.
In a NYT interview, White House advisor Gene Sperling confirms that the deal to maintain the Bush tax rates raised growth expectations, but omits the dollar from the discussion.
In The Washington Times, David Malpass advocates a constitutional amendment to cut the deficit.
From 1982, Jude Wanniski opposes a balanced budget amendment.
The WSJ editorializes in favor of allowing college educated immigrants to stay in the U.S.
Restrictionists claim that employers hire H-1B visa holders for "cheap labor," but companies must pay the higher of the prevailing wage or actual wage paid to "all other individuals with similar experience and qualifications for the specific employment in question." A Government Accountability Office study last month found that H-1B professionals in the same fields and age groups generally earn the same or more than their U.S. counterparts. Employers hire skilled foreign nationals based on merit, not because they can pay them less. Immigrants are also some 30% more likely than non-immigrants to start businesses.
Friday, January 28, 2011
Thursday round up.
On RCM, John Tamny advocates legalizing insider trading.
In The WSJ, Stephen Moore suggests government spending supplants higher yield private investment.
On The Kudlow Report, David Goldman discusses Japan’s debt crisis, slow growth and demographics:
At Forbes, Bret Swanson mentions sound money in a review of Tyler Cowen’s new book on technology.
The Washington Post reports sound dollar advocate U.S. Rep. Mike Pence (IN) won’t run for president.
On Kudlow, John Rutledge sounds optimistic on economic growth:
At Forbes, Jerry Bowyer sees a divide between economic elites of both parties and average workers.
The WSJ reports Mexico’s president opposes currency manipulation.
In The WSJ, Stephen Moore suggests government spending supplants higher yield private investment.
On The Kudlow Report, David Goldman discusses Japan’s debt crisis, slow growth and demographics:
At Forbes, Bret Swanson mentions sound money in a review of Tyler Cowen’s new book on technology.
The Washington Post reports sound dollar advocate U.S. Rep. Mike Pence (IN) won’t run for president.
On Kudlow, John Rutledge sounds optimistic on economic growth:
At Forbes, Jerry Bowyer sees a divide between economic elites of both parties and average workers.
The WSJ reports Mexico’s president opposes currency manipulation.
Wednesday, December 29, 2010
Wednesday update.
On Forbes, historian Brian Domitrovic explains the 1970s were lousy for low income people, even though taxes on the rich were high.
At New World Economics, Nathan Lewis analyzes gold's continued rise.
On The Kudlow Report, John Rutledge debates China’s trade policies with super-hawk Peter Navarro and a fired-up Larry:
At Fox Business News, Stephen Moore argues US tax and regulatory policy are driving jobs overseas.
In The WSJ, David Wessel reports the President is proceeding with tax reform (hat tip: The Kudlow Report).
Also from The Journal, Hugo Restall notes inflation’s impact on China’s housing market.
On CNBC, Stephen Moore debates winners and losers in 2010:
On IBD, Walter Williams opposes fair trade.
At an Asia Society event next month, Nobel Laureate Robert Mundell will answer, “Is Gold the Answer to Currency Wars and Unstable Exchange Rates?”
On NRO, U.S. Rep. Ron Paul (R-TX) explains his views.
At New World Economics, Nathan Lewis analyzes gold's continued rise.
On The Kudlow Report, John Rutledge debates China’s trade policies with super-hawk Peter Navarro and a fired-up Larry:
At Fox Business News, Stephen Moore argues US tax and regulatory policy are driving jobs overseas.
In The WSJ, David Wessel reports the President is proceeding with tax reform (hat tip: The Kudlow Report).
Also from The Journal, Hugo Restall notes inflation’s impact on China’s housing market.
On CNBC, Stephen Moore debates winners and losers in 2010:
On IBD, Walter Williams opposes fair trade.
At an Asia Society event next month, Nobel Laureate Robert Mundell will answer, “Is Gold the Answer to Currency Wars and Unstable Exchange Rates?”
On NRO, U.S. Rep. Ron Paul (R-TX) explains his views.
NRO: So your goal is to end the federal government’s monopoly over currency, essentially.
PAUL: That is it. It has monopoly control over supply of money and credit. And it was never meant to be that way. Under the gold standard, the supply of money is dependent on the market and the interest rates are dependent on savings rather than the Fed dictating the interest rate.
When I first came to Congress in the Seventies, gold wasn’t even allowed be owned. It was ’75 or ’76 when it became legal again. And some people used gold as a protection back then. It was $35 an ounce and now, look, its $1,400 an ounce. So it’s a system that deserves our attention.
Sunday, September 19, 2010
Friday round up.
On The Kudlow Report, John Rutledge debates China currency policy.
The WSJ editorializes that U.S. CPI and interest rates have been kept down, and the trade deficit elevated, by China's yuan sterilization policy, not its dollar peg.
At cnn.com, Paul R. LaMonica observes rising commodity prices and suggests stagflation.
Australia's Catallaxy Files comments on Brian Domitrovic's Econoclasts and Jude Wanniski.
At The WSJ, Kimberly Strassel suggests the President's stance on tax rates will hurt Democrats up in November.
The WSJ argues the best response to rising poverty is economic growth, and that focus on inequality is counterproductive.
On Fiscal Times, Bruce Bartlett suggests the Bush tax cuts did no economic good.
The Adam Smith Institute offers a primer by Dr. Eamonn Butler on Austrian economics.
The WSJ editorializes that U.S. CPI and interest rates have been kept down, and the trade deficit elevated, by China's yuan sterilization policy, not its dollar peg.
At cnn.com, Paul R. LaMonica observes rising commodity prices and suggests stagflation.
Australia's Catallaxy Files comments on Brian Domitrovic's Econoclasts and Jude Wanniski.
At The WSJ, Kimberly Strassel suggests the President's stance on tax rates will hurt Democrats up in November.
The WSJ argues the best response to rising poverty is economic growth, and that focus on inequality is counterproductive.
On Fiscal Times, Bruce Bartlett suggests the Bush tax cuts did no economic good.
The Adam Smith Institute offers a primer by Dr. Eamonn Butler on Austrian economics.
Wednesday, September 15, 2010
Wednesday articles.
At Opinion Journal, James Taranto discusses the GOP House Leader's mixed message on tax increases for the wealthy.
On CNBC's excellent new NetNet blog (hosted by high school pal John Carney), LoriAnn LaRocco interviews Steve Forbes.
At The New American, Alex Newman offers a comprehensive overview of the rising consensus for a world currency, quoting Robert Mundell. Although Newman clearly opposes such a move, it is inevitable if the dollar continues to be unstable.
Monday, September 6, 2010
Long weekend update.
In The Washington Examiner, Timothy P. Carney has an important piece on the financial interests behind the China currency debate.
At the Kudlow Report, Stephen Moore and Robert Reich debate demand vs. supply-side policies:
At Forbes, Robert Lenzner sees President Obama as more Carter than Reagan.
At Zero Hedge, madhedgefundtrader wonders if Steve Forbes will run for president as a Tea Party candidate.
Also on Kudlow, John Rutledge analyzes the market:
At the Kudlow Report, Stephen Moore and Robert Reich debate demand vs. supply-side policies:
At Forbes, Robert Lenzner sees President Obama as more Carter than Reagan.
At Zero Hedge, madhedgefundtrader wonders if Steve Forbes will run for president as a Tea Party candidate.
Also on Kudlow, John Rutledge analyzes the market:
Tuesday, May 18, 2010
Asset-shift and supply-side (Domitrovic post)
(Another original post from historian and Econoclasts author Brian Domitrovic.)
These days there’s worry that if somehow we get the supply-side policy mix of stable money and tax cuts, it might be a little inadvisable given the mammoth size of federal deficits. In the late 1970s and early 1980s, when real conditions were more extreme than today’s, and fiscal ones almost as bad, supply-siders argued that stable money and tax cuts would be so salutary that all cavils would be overwhelmed.
The argument was based on the principle of asset-shift. In periods of lax money and creeping taxation, investment dollars invariably depart from the real economy and into hideouts and hedges, commodities the clear example. The effect of this is that there materializes a dammed reservoir of potential investment capital ready to bound into the real economy once the solution of stable money and low and simple taxation is applied. This asset-shift event will not merely wipe out any unemployment problem. It will create so many job opportunities that the productive capacity of the economy will reach entirely new dimensions. This is indeed was the story of the 1980s and 1990s. Into the bargain, the real economy will displace government, easing the way for spending cuts.
Bad dollar and tax policy draws money out of the real economy that yearns to be there. Goodness knows that over the last decade, and especially recently, money has been scrambling into every nook and cranny to hedge all the macroeconomic mistakes. This is why by supply-side lights, the immediate solution to today’s problem must be tax cuts (or at least stemming the tax increases) and stable money. This stands to break the dam, and hence straight away solve the investment, jobs, and growth problem.
Note that this is not the same thing as saying that tax cuts pay for themselves. Asset-shift makes the funding of budget deficits “rounding errors” (in John Rutledge’s words) in a massive portfolio event. Real assets along with intangible assets (including government bonds) otherwise threatened by inflation and taxes vacuum money out of tangibles and similar hedges. In the 1970s, supply-side economics attracted support because it was clear it stood enormously to affect investment in the real economy. That the deficit would be a non-issue in the offing was almost an afterthought. Supply-side economics caught fire because people caught on to its real, not its fiscal effects. In turn, the fiscal effects would necessarily be trivialities.
(Editor's note: Here's more on this topic from John Rutledge, courtesy of BD.)
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