| The mainstream media are carping and whining that the president?s recent economic conference in Washington was comprised of supporters rather than dissenters -- as though this is some great surprise. The president, they said, was just preaching to the choir. They called the meeting an exercise in political propaganda that was just paying off big campaign donors. As usual, big media missed the big story: In a master stroke of message communication the president spoke directly to the nation in certain terms about his visionary economic plans for the next four years.
Over two days last week, George W. Bush gave three full-fledged statements on his economic intentions. Reading through his comments one is struck by the clarity of his message. Each of his key points is pro-growth, incentive-based, and investor- and owner-oriented. His economic message favors entrepreneurs, importuning for more saving and capital formation as well as a healthy dose of deregulation.
In short, Bush is prescribing market-oriented measures that will spur prosperity and wealth creation. He?s clearly rejecting government planning and entitlement. This is another dose of cowboy capitalism from the president. It is Schumpeterian capitalism. Entrepreneurial capitalism. Ownership capitalism.
Read through the Texan?s economic laundry list: tax reform, Social Security reform, tort reform, energy reform, budget restraint, and, surprisingly, dollar stability (or even greenback strength).
Worried about budget deficits? The president intends to combine economic growth with intensified federal spending restraint.
Worried about trade deficits? The president argued for more purchases of U.S. goods by foreign customers, which is a rather polite way of saying that Europe and Japan should take measures to grow their economies more rapidly.
Worried about savings? Let?s have more private saving through lower tax rates, expanded and simplified tax-free savings accounts, and shrinking government budget deficits. That?s the Bush way. And remember: Saving fuels capital formation, and capital funds the businesses that create jobs.
Worried about the shrinking dollar? Federal Reserve Chairman Alan Greenspan is slowing money growth in order to stabilize the dollar and maintain domestic price stability. And Bush, for the first time, is clearly linking his fiscal policies with Fed restraint in order to defend the greenback.
Worried about healthcare affordability? Reform of medical malpractice lawsuits will go a long way to lowering healthcare costs, as will health savings accounts and small-business-community group purchasing power. Let?s work through consumers exercising responsible choices, not through benefit explosions from the government that only leverage business and insurance costs.
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