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How do we solve the inflation crisis? By cutting taxes and gov’t spending
The recent inflation numbers at 6.8% a year, the highest in 40 years poses a real problem. The reason it’s a real problem is once inflation sets in, it’s very hard to stop the normal pattern for stopping it is to raise interest rates, very decisively, uh, breaking the back of the inflationary pressure. That means restricting the money supply. And that means businesses and individuals can’t find surplus capital or surplus cash. So you normally, the result has been in the past that they have tried to defeat inflation by causing very deep recessions. And in fact, one of the reasons Ronald Reagan got elected in 1980 is they had the worst of all worlds. The inflation was going up, the unemployment was going up, Reagan invented what he called the misery index, which was combining the two. And all of a sudden it became a real symbol to people that it just wasn’t working.
We’re drifting back into a similar path pattern. The historic breakthrough was art laffer and the development of what was called supply side economics. Because the challenge here is inflation is caused when you have too many dollars or too much money, but dollars in the U.S. sense, and too few goods and services.
So you’re bidding up the goods and services because you have surplus money. One solution is to squeeze the money and that causes enormous pain and very high unemployment. The other solution, which Art Laffer the economist had created, and Ronald Reagan and Jack Kemp had adopted, was to, in fact, increase the supply. And that’s why it’s called supply side economics.
And the theory was if we just create more goods and services, they’ll mop up the money without pain. It turned out to work. Reagan passing a three year tax cut led to about a 30 year period of growth before the politicians screwed it up again.
Uh, and I think it’s really worth looking at as a case study. You’re gonna see a real fight here between those who pretend there is no inflation that really the current Biden white house view, those who believe the only way to solve inflation is with pain. That’s the traditional Keynesian demand side view. And those of us who believe that the real answer is to get to a balanced budget by controlling government spending. But at the same time cut taxes to allow people to have more money and more investments to actually grow the economy. So it absorbs the inflation that I think would be the right solution. The debate over this will become one of the biggest issues of the next three years and is something really worth paying attention to.
Shocking election of Argentina’s Javier Milei an indictment of the Left
Argentina will be transitioning to a new far-right presidency when Javier Milei takes office on Dec. 10. The 53-year-old libertarian prevailed in a run-off election in November by advocating for radical changes to address the country’s economic challenges, marked by high inflation and a volatile currency. But Milei has only a limited number of congressional
Despite the joy they brought, the pandas are back in China
China recently recalled all panda bears from U.S. zoos, following years of rising tensions between the two nations. The panda bear is an iconic symbol of China and Chinese culture. Straight Arrow News contributor Newt Gingrich observes that this is devastating to all Americans who find panda bears cute, cuddly and adorable. The only upside,
In face of conflict, be thankful for what you have this Thanksgiving
Thanksgiving falls during a time of war and political strife this year. While the holiday is typically a time for families to come together and count their blessings, this year’s gatherings could come with an extra portion of discord. In fact, a recent poll reveals a majority of families have agreed to leave political talk
GOP must reframe abortion debate after Nov. 7 losses
The Nov. 7 elections brought sweeping gains and victories for Democrats nationwide, especially in battleground states like Virginia and Ohio. While Republicans did earn some victories, their strict positions on abortion cost them at the polls. Straight Arrow News contributor Newt Gingrich observes that Democrats won most in the states where they focused on pro-choice
Democrats are conspiring to keep RFK Jr. off the ballot
Independent candidate Robert F. Kennedy Jr. initially launched his presidential bid as a Democrat, setting up a potential rivalry with President Joe Biden. If he manages to secure a spot on the presidential ballot as a third-party candidate, both Republicans and Democrats are worried that RFK Jr. could siphon votes from their own candidates. Straight
Underreported stories from each side
UPenn loses $100 million donation after antisemitism hearing
13 sources | 15% from the left
Post-Roe, nearly 1 in 5 people seeking an abortion traveled out of state, analysis finds
10 sources | 0% from the right
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