Wednesday, July 25, 2007

Global growth - Lower taxes

Rich Karlgaard of Forbes (on his blog) discovers a gem: Kudos to U.S. News and World Report for reporting this oddly underreported story. The global economy from 2003 to 2007 has grown about 5% a year. It is a quarter bigger than it was five years ago--about $15 trillion a year bigger. That's equivalent to adding a new North America to the global economy. Each year. Wow. Writes U.S. News:
This is the story of globalization, of free trade, of China, of India. Then there is this: The 21st century has also seen a global effort to reduce tax rates.
How often do you read that? My gosh, people and economies really do respond to lower tax rates. Somebody tell The New York Times. And The Wall Street Journal, for that matter. (Outside the op-ed page, the Journal is no great friend of supply-side economics.) Somebody tell the candidates running for U.S. president. Global growth is great for humanity--a billion people have departed poverty over the last 15 years. Global growth is good for the U.S. economy, too. In revenue, America is $3 trillion a year bigger than in 2003. In market cap, tens of trillions bigger. No Democrat says these words. Hillary Clinton says we need a "time out" from global trade. "Apple and Boeing, to your rooms! You need a time out! You're killing my story line!" [What a cheap manipulator.] Republicans should be running cheerful pro-growth campaigns. They aren't. Boo [to] them.

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