Tarp The TARP
By Lawrence Kudlow
November 20, 2008
Page 2 of 2
Even at the G-20 meeting in Washington this past weekend, all one heard was "global fiscal stimulus" -- or more spending on a worldwide scale to fight recession. It won't work. It never has. Hundreds of academic studies over the past 25 years show clearly that countries that spend more grow less -- but that nations that tax less grow more.
Why these lessons have been forgotten is beyond me. We have to restore market discipline and personal accountability. We should reward the economic good, but punish the bad. Instead, we have launched a demoralizing government-spending nymphomania.
Incidentally, all this talk of big-government bailouts and a never-ending flow of government spending has disheartened the stock market, which is now down five of the past seven days. Since the Nov. 4 election, the Dow is off 15 percent, or more than 1,400 points.
All this shows why, like the grounds crew at a baseball stadium on a rainy evening, we need to roll out the tarpaulin in order to preserve the field. To safeguard today's economic field, it's time to tarp the TARP. Let's stop right here at $350 billion before everyone in the country demands a piece of the new TARP action. At the same time, let's cut taxes to grow the economy. Slash the corporate tax rate. Reduce personal rates across-the-board. Promote investment with a lower capital-gains tax and a lower estate tax. Let's restore the incentive model of economic growth.
Current political trends in Washington are going to push us off some left-wing economic cliff. Instead, let's have some sanity. It's time for a reality check about what works and what doesn't in fighting recession and promoting long-term economic growth.
I say tarp the TARP.
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COPYRIGHT 2008 CREATORS SYNDICATE INC.
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Note -- The opinions expressed in this column are those of the author and do not necessarily reflect the opinions, views, and/or philosophy of GOPUSA. >> Back -- Page 1 2
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