Herewith the latest dispatch from Dr. J. from the depths of New Atlantis, also bringing some love for Art Laffer.
After the standard groveling, trembling prolegomena, which we omit as all of you should have the standard Gormogons stylebook at hand. As, we may remind you, the the penalty is, well, that hand.
I hope that the Gormos are recovering from Gormogonicon MMX. Your shipment of Tylenol, Gatorade and hair of the dog are en route.
Your Royal Surgeon would like to congratulate former President and Secretary of State Bill and Hillary Clinton on their daughter’s New York wedding. He would also like to congratulate Senator Kerry on his new yacht, and belatedly to former Vice President Al Gore on his California mansion purchase.
Now while the gentle readers may be thinking that Dr. J. is being snide and sarcastic, he really is not. Despite the economic outlook, Mrs. Dr. J. is now the proud driver of a sporty convertible. Dr. J. is a strong believer in supply-side, a/k/a “voodoo” economics. Despite the hypocrisy on parade (which I am willing to forgive given that it is hypocrisy in the right direction), these individuals have injected significant amounts of cash into their communities. Senator Kerry could have purchased his yacht locally, rather than from New Zealand, but people in Rhode Island will benefit from its mooring in the Ocean State.
What rubs me the wrong way is that these individuals, despite their spending of hard earned, or hard married, or hard inherited wealth do not realize that allowing us to keep (and spend) more of our own wealth will do more to grease the wheels of the economic engine of the United States. Low taxes are a far more powerful economic multiplier than anything Keynes ever dreamed of. It’s their ideology, or ignorance that rubs the Doctor the wrong way.
These simple economic lessons were made manifest in Richard Scarry’s opus magnus, What Do People Do All Day? The first chapter is a classic lesson in microeconomics and the economic multiplier. Farmer Alfalfa brings his wares into town and sells them to Grocer Cat. With the money he has earned, he goes to Blacksmith Fox and purchases an additional tractor so that he may farm a greater amount of land, thus earning additional income and hiring a new hand (after all, who will drive the second tractor). He doesn’t stop there. He also buys earrings for his wife and a little tractor for his son, luxury items that he would not be able to afford after the Bush tax cuts expire. He also buys a suit from Stitches the Tailor. He also puts some of his money in the bank, which allows other individuals to borrow capital for their own businesses. The story goes on and DEMONSTRATES THE ECONOMIC MULTIPLIER, as the other workers buy food and clothes and deposit money in the bank. Stitches also buys an eggbeater (from Blacksmith Fox) and goods to make fudge (from Grocer Cat). Blacksmith Fox purchases more raw materials for his ship and a hat for his wife (from Stitches). Finally Grocer Cat buys a dress for Mommy Cat and a trike for Huckle Cat. In a later chapter, Stitches has a house built next door to Grocer Cat and family.
Rather than the socialist conformist liberal guilt laden prattlings of Rainbow Fish, Dr. J thinks that Richard Scarry’s work should be part of the standard curriculum for all school age children. Indeed, it is more representative of actual microeconomics than anything that former Enron advisor Paul Krugman could concoct.
Indeed, Dr. J., if he were the bumper sticker type, I would replace all of the ‘Live simply so that others may simply live” bumper stickers with “Live well so that others can make a living!”
Royal Surgeon to the Gormogons
P.S. Great New Atlantean minds think alike.
Dr. Arthur Laffer, describer of the Laffer Curve hits this one out of the park in today’s WSJ.
In this editorial he discusses howwe all suffer by soaking the rich!