Larry Kudlow posted an article at National Review yesterday with his ideas on how to strengthen the dollar. He lists the solutions that have historically been used to strengthen the dollar. A stable dollar will stop inflationary pressures. He also points out that in the past, lower taxes have resulted in economic growth and lower unemployment. We also need to cut government spending.
He states in the article:
"Put simply, the Mundell-Laffer model exercises monetary restraint to save the dollar -- and low marginal tax rates for economic-growth incentives that benefit investors, risk takers, small businesses, and workers. Right now, for therapy, the Fed should begin moving
excess cash from the economy, and they should raise their target rate. Take a page from the Reserve Bank of Australia's playbook and move rates higher."In addition, the Treasury ought to get out there and buy these unwanted dollars in the marketplace. Just go out there and bid for them. And they need to stop printing so much
debt from Congress. All this massive spending and borrowing is killing us. We need to be slashing tax rates on large and small businesses. There's just no better place to begin job creation. And leave the Bush tax cuts in place, for heaven's sake."
If we do not cut federal spending and the tax burden on Americans in the very near future, we will not have an economy to save.
Leave a comment