Alternative to Bailout Nation

Is the U.S. really about to become bailout nation? I sure hope not. Using Chapter 11 bankruptcy as a reorganizing tool is a much better idea than federal money. The airlines have used it. Steelmakers have used it. Retailers have used it. I don’t know why we didn’t use it for Lehman and the other banks. It’s a matter of first principles — and I’m talking about market principles. Bailout nation puts us on the wrong road... [snip]

Lower tax rates will boost asset values and reward successful producers and investors. That’s what we need. A $700 billion big-spending package merely moves money from the private sector to the government and then to a government-targeted bailout. That’s not growth. That won’t create new factories or new technologies or new risk-taking. Permanently lower tax rates will.

This is the cutting-edge issue. And I sure hope the Republican party in Washington and around the country gets on this message. There is an alternative to bailout nation. It’s called supply-side tax cuts. That will jolt the economy back toward growth.

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