After my first glance at the title of this article, "A System in Need of an Update," I was very skeptical. It made me think of someone trying to "update" the economy "system" like someone would update their laptops with the newest anti-virus software. After reading this article I was very comforted. The system this author is talking about is the way we think about the prosperity of the United States.
"The federal tax law for individuals and corporations badly needs to be rewritten, with an emphasis on simplicity, low rates, a broader tax base and taxation of consumption rather than investment." Wow, an author who thinks that taxing consumption instead of investment is solid concept? That's new. This is by far the most dynamic thought process used out of all the articles I read on NYTimes.com.
Instead of a magical fix that will cure this fictional economic "problem" Mr. Capretta seems to believe more in promoting prosperity than promoting his political views. This view is very rare these days. Even people who seem to have very sensical views on policy based upon microeconomic principles are missing the point. There is no fix, there is no cure, there is no problem, but there certainly are barriers preventing prosperity. Capretta always pushes for the updating of old social programs started back in the Great Depression. He claims they are outdated and need updating because today is a different day, and I cannot agree more. Capretta sees how the world is changing and our need to change with it.
Instead of a magical fix that will cure this fictional economic "problem" Mr. Capretta seems to believe more in promoting prosperity than promoting his political views. This view is very rare these days. Even people who seem to have very sensical views on policy based upon microeconomic principles are missing the point. There is no fix, there is no cure, there is no problem, but there certainly are barriers preventing prosperity. Capretta always pushes for the updating of old social programs started back in the Great Depression. He claims they are outdated and need updating because today is a different day, and I cannot agree more. Capretta sees how the world is changing and our need to change with it.
Mr. Capretta seems to have at least a couple things figured out. Instead of promoting a cause, he promotes prosperity. Instead of viewing the world as stuck in one place, he acknowledges that it is changing. Instead of fiscal stimulus, he argues for fiscal restraint. Promote savings, don't tax it. Get rid of wasteful government programs, not add more of them. All of these ideas are extremely consistent with the principles that we have discussed in Austrian economics. It is nice to see a published author who has his head screwed on straight. Since I didn't want to rip apart another Keynesian author telling me that we just need more stimulus, I'll just let you read this guy's article and breathe a sigh of relief in agreement.
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