Michael Ubaldi, October 31, 2003.
They may end up calling it the Bush Boom, but a happy Larry Kudlow has a few more candidates deserving congratulations:
Yes, indeed — the Bush boom has begun at last. This tax jolt has ended the prior capital bust — which lasted a long and dreary three years — and ignited a new capital boom.
But give due credit to House taxmeister Bill Thomas for crafting important pro-growth legislation to reduce tax burdens on all kinds of capital formation. Also give credit to Alan Greenspan & Co. The central bankers provided the necessary liquidity to finance these new investment tax incentives.
Of course, demand-side pessimists think these tax-cut effects will wear off in another quarter or two. But they'll be proven wrong because they do not understand the incentive model that rewards additional work, risk, and investment when all three get paid more after-tax. This inflation-free economic boom, bolstered by continued technology advances in broadband and Internet services, could last seven to ten years — just like the prior two booms of the 1980s and 1990s. Just think of it.
"Can you hear me now?" We hear it. As long as the American entrpreneur is free to innovate, we've good times ahead.