Prosperity As Far As The Eye Can See
December 31, 1997
In "American Abundance: The New Economic and Moral Prosperity," economist Larry Kudlow says America will continue to prosper for the next two or three decades. He credits the policies of Ronald Reagan and the inflation-fighting tenacity of Federal Reserve chiefs Paul Volcker and Alan Greenspan.
Here are a few of the points Kudlow makes:
- The "long wave of prosperity" began when the Reagan tax cuts kicked in during the early 1980s.
- It has continued and been strengthened by the free-trade attitudes of our last three presidents, who opened economic borders, lowered tariffs and encouraged more trade.
- Today, fiscal policy is directed at tax cuts, inflation and unemployment are low, and growth is better than moderate.
- Technology will fuel future economic growth and -- combined with more investment -- will account for one-third of that growth.
Entrepreneurial risk-taking is often directly linked to lower taxes and reduced government regulation. Both trends must be accelerated and strengthened, he believes.
But troubles loom for Social Security and Medicare. And both problems must be rationally addressed without delay.
Source: Perspective, "The Long Wave," Investor's Business Daily, December 31, 1997.
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