I'm not opposed to "supply side" if that is truly what it is, but lets not pretend. Bringing tort law into some reasonable control, removing or reducing regulations when their costs are shown to outweigh their benefits might increase supply of goods and at the same time reduce costs and improve the amount of jobs and their pay. Simply to reduce taxes on the rich doesn't mean they will invest their tax savings in our country if the gain is perceived to be better elsewhere. I understand that it is more likely that investors will invest in our country if they can put of profits back in their profit, but lets not fool ourselves that such is the whole equation. Labor costs, regulatory and liability costs are among many of the factors that affect the return on investment. It should not all about tax breaks. I disagree with government bailouts of individuals and investors that made unwise decisions in our ballooning housing market. It is not fair then to tax conservative lending institutions or conservative individuals to bail out those who made poor decisions. As much as possible the Fed should regulate money supply so as to keep it stable, not bail out these institutions, investors or individuals that share part of the blame.

Posted at March 28, 2008 2:35 PM in response to The Lost Decade