Tom Friedman's editorial today on China makes clear that the command structure that developed the economy and brought about it's meteoric rise needs to morph into a system that crowd sources. It appears that the leadership is resisting and clamping down on dissent more and more and if this continues I predict slower growth in China because of general mal-investment from crony capitalism.
Talk of China
Another editorial regarding tax cuts runs into a regular truism found in nature and the stock market, the the more you try one solution, tax cuts for example, the less effective it is. This is especially true if the cuts are from 80%, a marginal tax rate prevalent before Reagan in comparison to the 35% rate now in effect.
Do Tax Cuts Lead to Economic Growth?
Regarding in-effective, we don't even want to talk about Ben Bernanke's efforts with Fed actions which are more akin to pushing a string. This gasoline he is spreading in the economy just refuses to ignite, but when it does, watch out!
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