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Trump’s Man not Radical Enough

March 21, 2017

The Chicago Tribune published an essay criticizing Kansas Governor, Sam Brownback, and the failure of tax cuts that he expected would assist economic growth in his state.

Sam Brownback is a true believer in Supply-side Economics and, upon election as 46th Governor of Kansas in 2010, went to work crafting a policy of tax cuts for the state of Kansas that were enacted in 2012. They failed, and there is a lesson that the Trump Administration, and particularly Treasury Secretary Steven Mnuchin, can learn from Brownback’s experience.

Supply-side tax cuts take time to work their way into the economy and Mnuchin’s “middle class” tax cuts won’t help as much as giving big tax breaks to the wealthy.

That, of course, is politically volatile, but it is the only way to spur economic growth, provide financing for new businesses, and supply mezzanine financing for businesses that survived the first year or two of entrepreneurship.

The American economy is burdened by more than 80 years of growth of government programs administered by the administrative state. The cost of Entitlements are strangling economic growth and only inventive, radical, tax cuts and the release of American citizens from the restrictions placed on “unaccredited” investors can hope to turn things around.

Unfortunately, the Trump economic team is very traditional and has no understanding of the damage done to financing of entrepreneurs by the Securiities and Exchange Act of 1935. They have profited from that system and have never thought of unleashing the equivalent of a “California Gold Rush” by changing SEC regulations that divided the American people into two economic classes.

Even the “scientific” taxation of Andrew Mellon of the Harding Administration that saved the American economy from Woodrow Wilson’s foolish entry into World War II is unknown to these denizens of Wall Street.

Too bad. So much can be achieved with only a few radical reforms. Visit http://www.mooc3.com for free access to an entire course on Supply-side Economics that explains how the “supply-side” works miracles.

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