New update from my friends at The Supply Side blog:
Weekend Wrap Up: The Ridgewood Blog notes that Steve Forbes and Steve Lonegan have teamed up to mend the Fed and restore a classical gold standard; American Principles In Action launches “Fix the Dollar Dot Com”
Politics and Government
Peter Roff, in the Washington Times, decries a new $50B Chinese patent fund as a mercantilist front.
In the WSJ, Jon Hilsenrath reports the fed’s growth forecasts are unattainable under current Fed policy.
The Ridgewood Blog notes that Steve Forbes and Steve Lonegan have teamed up to mend the Fed and restore a classical gold standard.
American Principles in Action launches Fix the Dollar Dot Com
From National Review, Stephen Moore and Norbert Michel write the Fed can’t fix the economy.
In Forbes.com, John Tamny reflects on what Mises has to teach us about ISIS.
From the Menger Center, Paul-Martin Foss rebuts the St. Louis Fed’s message that Americans are hoarders.
CNBC believes the jobs bombshell has raised questions of new weakness in the economy.
The WSJ writes a slowdown in hiring has lowered the growth outlook.
In the WSJ, Professor John Taylor explains why returning to a rules-based monetary policy is the ‘nice’ thing to do.
The Big Squeeze
Households see electricity prices rising at record levels
Anytime Larry Kudlow speaks, people need to listen. Whenever Larry Kudlow speaks at the (Jack) Kemp Forum, people need to study it. Larry’s message on growth is so important.
I came across an interesting column today over at OpenMarket.org, discussing how to help small businesses across America. I recommend the entire column, but the three highlighted sections below merit particular attention.
“Paychex, Inc., a payroll service provider that works with many small businesses, recently commissioned a survey. They asked small business owners their thoughts on the economy, and what the biggest obstacles are to growing their businesses. The most common gripe? Regulation. 47 percent of small business owners say that regulations have “slowed or prevented” their business from growing.”
This is where bureaucracy gets in the way of real economic growth. Damn, just get out of the way and let those with initiative and drive and capital investment put people to work.
“If Congress is genuinely interested in helping small businesses while speeding up economic recovery, it’s time for a different approach.”
Can you join me in saying “Transformational Change”?
“Federal regulation alone costs $1.75 trillion to comply with. Congress should lighten the load. 47 percent of small business owners say that regulation has made their business grow more slowly. Letting that 47 percent grow more quickly would go a long way toward getting the economy growing again.”
Almost $2,000,000,000,000 (yes, that’s 12 0’s) just to comply with regulations!
>A brief editorial in the Wall Street Journal should make you ask a few questions, after your skin stops crawling:
President Obama’s fiscal 2012 budget doesn’t cut much of anything (see above), and certainly not the Internal Revenue Service. The White House is requesting that the most beloved of all government agencies get an additional 5,100 agents next year, no doubt to wring further tax revenue from Americans. The White House wants to give the IRS a 9.4% raise in fiscal 2012, to $13.28 billion. Reuters reports this would allow for a roughly 5% increase in agency manpower to 100,537, including $460 million more for tax enforcement than in 2010.
I’m not for more government, but I will advocate for a big government idea to make a larger point.
What if instead of hiring 5,100 new IRS agents, the government instead gave 5,100 people $500,000 under the watchful eye of the Small Business Administration, and let them go out and create real jobs, and real wealth in America? We could play with the numbers one way or the other, at the high end this is $2.5 Billion. $250,000 instead would be $1.25 Billion. Something like that would be a real stimulus, not creating more government workers.