Our dynamic economy can be most easily defined as a vehicle going down a winding road taking goods to and from the market. The object is to get back and forth from the market as fast and safely as possible.
Sometimes, there will an unexpected bend in the road and the vehicle goes into a skid. The natural inclination is to turn harder and slam on the brakes. This is basically the analogous to raising taxes, increasing interest rates and employer mandates during a downswing or 'skid' in the economy.
As many drivers learn the hard way, this natural inclination is exactly wrong. Slamming on the brakes and turning harder only edges the vehicle closer towards a full spin out and crash. The only chance for control with this driving technique is to virtually stop the vehicle (economy) altogether and then plod along so slow that you never get into a skid. Problem is, less goods are delivered to the market, less wealth is created, everyone suffers as the economy is unable to keep pace with social and market needs. The driver goes bankrupt.
The proper way to stay under control during a skid is to ease off the accelerator (raise interest rates to slow growth) slow down and turn into the skid (lower taxes) allowing the vehicle of the economy move forward and regain its forward progress towards delivering goods to the market with all due speed.
Unfortunately, while our current economy is moving forward, it is doing so at a snail's pace. Inexperienced drivers (politicians with little economic sense or experience) should not be at the helm of our economy. Their lack of understanding of proper driving technique continues to cripple prosperity in favor of plodding along in bankrupt misery. It would be more prudent to offer these politicians the back seat, strap them in, and let individuals who know what they are doing take the helm of driving goods to the market...
And then turn the radio up loud, real loud...
2/29/96