George Bush's Emergency
Editors, The
(CONTINUED FROM PAGE 4) him to be unavailable for an indefinite period. He is planning to set a world parachute jump record by leaping from "the edge of space" 130,000 feet above terra firma, and...
...All one needed to do to avoid disaster, high-risk investors are condescendingly told, was to be a sensible fellow and invest in the Real Economy, where they make important things, like, you know, Coke, or perhaps aluminumfor the cans...
...SOMEWHERE THE MARLBORO MAN is smiling...
...Then history was made...
...On March 23 Dr...
...But when the driving force of the economy is exceptionally rapid innovation powered by risk capital, the disappearance in less than a year of $5 trillion worth of such capital, largely as a result of a Federal Reserve sucker punch, must be treated by the government as an emergency...
...Muller's hearing his lawyer insisted that a battery of psychiatrists found that he "presents no danger to any members of the community...
...Cutting the current 20 percent rate by five points and narrowing or eliminating the distinction between long- and short-term gains to reduce volatility-and boost government revenues on increased trading-would do more to resurrect the NASDAQ than the Fed's rate-cut water torture...
...To achieve this there is no better tool than a substantial cut in the capital gains tax...
...Muller, whose fingers have never known nicotine, walked to the urinal and reached for the young man's private part...
...The young man has no known links to any of the Giant Tobacco Corporations...
...The 20-year boom has been largely driven by the restoration of risk capital's rewards...
...Investors in innovation, against all conventional wisdom, bet that they can beat the market, defying its relentless "efficiency" to seek out the as-yet-unrecognized and undiscounted advance...
...As Karlgaard argues, even in the face of extraordinarily promising technological advances in the early 1970s, risk capital essentially disappeared for most of that decade, intimidated by a combination of inflation, high taxes, and government hostility...
...Mother Nature is not always so easy to get along with...
...Where was Mayor Muller...
...The administration could hardly do anything more useful than create incentives to get them back in the game...
...As Alan Reynolds and others point out in this issue, stock market crashes predict recessions rather than cause them...
...on January 28, looked at him through the mirror and smiled...
...TAS George Bush's Emergency 10 THE AMERICAN SPECTATOR May 2001...
...Bush's core constituency, American investors, and especially high-risk investors, are in the throes of an economic catastrophe...
...For those obsessed with surpluses, capital gains tax cuts always pay for themselves...
...And while on the subject of Democratic reformers who wear two faces, the Democratic Congressional Campaign Committee, which just a year ago was diabolizing gun owners under the Hon...
...At Dr...
...This is at the best of times a hazardous undertaking, readily discouraged by bad policy...
...Perhaps they desire Clinton-like ergonomic standards to prevent repetitive stress disorder...
...According to his alleged victim, Dr...
...It was the capital gains tax cuts of 1978, 1981, and 1997 that most powerfully drove the boom...
...The Fed's whipsawing of investors over the past 18 months, swinging between a huge Y2K precautionary increase in liquidity in late '99 and its subsequent withdrawal (see Arthur Laffer's analysis in this issue), shattered those rewards, discouraging and defunding the nation's most useful investors...
...Muller, a rigorist in the anti-tobacco campaign, made international headlines for imposing the country's strictest smoking ban, prohibiting even outdoor smoking on non-private property...
...His failure to seriously respond threatens to derail his presidency...
...The Bush Administration put the kibosh on the Kyoto accords' promotion of one grand global thermostat, and in Sevier County, Utah, coin-sized drops of manure began falling from the sky...
...RET Even in much of the financial press, the most common reaction to the NASDAQ collapse has been sniggering self-satisfaction that go-go investors have finally gotten theirs...
...He is planning to set a world parachute jump record by leaping from "the edge of space" 130,000 feet above terra firma, and he is prone to nose bleeds...
...Muller, a Democrat, entered the lavatory at 3 p.m...
...As George Gilder and Rich Karlgaard point out in this issue, however, the "value" investor snuggled safely on the sidelines is comparatively useless to economic growth...
...Tell that to the Marlboro Man...
...Patrick Kennedy, held its "First Annual Chairmen's Council Continental Pheasant Shoot" on March 30...
...And it would do more than all the one-sided bipartisanship and compassionate conservatism in the world to secure the administration's increasingly tenuous political future...
...Alfred Muller, the mayor of Friendship Heights, Maryland, pleaded guilty to sexually abusing a 14-yearold boy in the lavatory of Washington's National Cathedral, where such behavior is strongly disapproved of...
...IN CALCUTTA, INDIA 25,000 prostitutes gath ered in a football stadium to demand recognition as a profession and what they termed "workers' rights...
...Growth is primarily a function of innovation and thus of risk...
Vol. 34 • May 2001 • No. 4
