Why Don't We Restart the Ronald Reagan free-market revolution?

The PatriotPost.USBrief · Monday, November 2, 2009

"Ah! Re-regulation. What a great idea. As I recall, the Soviet Union and old Eastern Bloc tried heavy government control and regulation, and it didn't work. The people rebelled. They wanted economic freedom, the right to keep their own money, the right to start their own businesses and the right to climb the ladder of success in a free economy. Now here's a counter-thought. The Ronald Reagan free-market revolution, which included regulation lite, a sound dollar and low tax rates, launched a three-decade-long boom. And yes, the Gipper's policies were copied around the world. ... So why not try something different? Unfashionable as it may be today, why not go back to the supply-side model of lower marginal tax rates for individuals and businesses, large and small? ... It's the incentive model of economic growth. At lower tax rates, where folks keep more of what they earn and invest, greater after-tax rewards spur greater work effort and investment risk. They also boost asset values. This is exactly what the economy needs: a rejuvenated dose of incentives -- permanent incentives. Think of this: At the same wage level from cost-conscious businesses, a 10 percent personal tax cut provides a handsome after-tax wage-increase incentive that will spur individuals to go back to work -- simply because work will pay more after-tax. ... That's the message for economic freedom fighters everywhere: Unite, and throw off your chains. Especially here in America." --economist Lawrence Kudlow