Free Markets – Cover them with a TARP
Free Market Economics is a cornerstone of American Conservatism. Further, free-market principles are the only proven path to prosperity and are the principles by which “old-Europe” is now re-aligning. The markets – equities, fixed income, commodities and foreign-exchange are forward looking indicators of market participant’s expectation on earning, investment rate and grades,and supply and demand curves. Proof of the market’s view of the path the US Economic policy is headed. The Dow Jone Industrial Average has fallen 14% since 11/04, 27% since 09/19. Commodity prices are down 295 (CRB Index). Clearly the market is not pricing based on hope and change, simply the reality of the anticipated economic policies of the incoming administration.
For the past 25 years, the United States has enjoyed a wave of prosperity almost unprecedented in history. All the direct result of supply-side economics. Ironically, however, while the rest of the world is now following the American growth model of lower tax rates, more economic freedom, and sound money, America has voted to reverse course. For a complete description of the path we have followed, and on which we are now headed, read The End of Prosperity: How Higher Taxes Will Doom the Economy — If We Let It Happen.
