Wednesday, February 06, 2008

John Cox - Chicago 2/06/08

John Cox in a WSJ editorial says Mrs. Clinton does have a plan. (See next blog)

He says she wants "more government spending and more government interference in the free market. This is exactly the opposite of what should be done. The reason health care is so expensive is that there is pumped up demand (partly caused by government handouts)which restricts competition and protects trial lawyers. The law of supply and demand says you have to reduce demand or increase supply to bring down the cost. Her government centered plan will do neither. The same holds for energy and education. In both demand is high and supply is failing to keep up; hence rising prices. The prescrition is more supply, more competition, a larger, freer market."

Mr. Cox continues "How will she pay for her "plan"? Repeal the Bush tax cuts, she says. Wrong, says Mr. Cox. The Bush tax cuts were not a break for the wealthy; they were an incentive for capital investment, which is essential to increasing supply in the private sector. You get there by increasing supply and more competition, to ensure a a freer, less expensive marketplace, more capital investment and risk taking on the part of the investors. We need more marginal rate cuts and ultimately and end to income tax, not higher tax rates if we are to remain competetive in a smaller world.

Entrenched interests typically want less competition. They favor government interference because it limits new entrants that could increase supply, reduce prices, take market share or reduce their prices. The history of the Clinton's (and the Bush's) is to curry favor favor and reward those entrenched interests, whether they are oil companies, big farms or the teachers unions. Shared prosperity is well within our grasp from a free market less encumbered from government.

We will not get that from Mr. Clinton". Typo - Mrs. Clinton

Well said, Mr. Cox. Listen up Mr. Leitch and Mr. Schock. Someday, there will be changes made, real changes that will benefit all. Or we will be further down the road to Socialism which is where I see we are heading.


Anonymous said...

Good post. I am almost amazed at Clinton's proposal the other week to freeze mortgage rates for several years. I don't know where this idea originates but it sounds like something as moronic as that which would come out of central planning.

Anonymous said...

Merle, one of your most insightful posts. Well said...laying out of economic common sense in a very easy to understand presentation.