Cutting taxes is good. We need to cut spending too however.
Believe it or not Canada, that’s right Canada, started this red tape cutting trend. We posted about Canada’s so called “1 for 1” regulation scheme in the spring of 2015. The law stated that for any new reg implemented an old reg had to be repealed.
Our readers loved the idea. But some readers said that a “1 for 1” deal didn’t take things far enough. Apparently President Trump agrees with them.
As my wife might say, “Nice going dum dums.”
Excellent. Regs are killing the economy and they have been gamed by the biggest players in both business and government. What’s even worse are the “guidances” issued by regulatory agencies at the whim of bureaucrats. At least the regulations are written down.
Fewer regulations means (counter intuitively for some) a less crony system. Where there is opacity and red tape the cronies rule.
We’ll see how much can be cleaned up.
Paddy Chayefsky wrote Network
Network is one of the great film canon. If you have some extra time over the holidays I suggest you check it out. In some important ways Mr. Chayefsky saw the future.
As we’ve said before – there will be wins and losses with Trump.
“I will have in my race more than $100 million put in of my money, meaning I’m not taking all of this big money from all of these different corporations like she’s doing,” Trump said at the debate. “What I ask is this. I’m putting in more, by the time it’s finished, I’ll have more than $100 million invested. Pretty much self-funding.” -Donald Trump
One of the great appeals for many with Trump was his assertion that he was “self funding”
Hernando de Soto (the author of the below article) is someone anyone who cares about trade, the betterment of the world, and the rule of law must read. His thinking on property rights and regulation has influenced my thinking on such issues deeply. And indeed in the attached article, and yet again, Sr. de Soto is correct. It isn’t global trade that hurts people. Far from it. It’s that some people, cronies, benefit from the global trade regimes negotiated in places like Vienna,
Going forward the Trump needs to be held accountable. With properties and projects around the world there are and will be many opportunities for crony capitalism to sprout within the new administration. It is incumbent upon those of us who believe in free markets and a non-crony economic system to hold the new administration’s feet to the fire. Cutting the federal workforce is excellent. Handing out subsidies to favored businesses would be very very bad.
Trump has an historic opportunity to rise above the crony temptations which are now laid out before him.
If Trump is serious about draining the swamp he’s got to consider how his outside business dealings, including the dealings of close family, reflect on this effort. With power comes the temptation to line one’s pockets. Best to erect firewalls so that this temptation is mitigated to the largest extent possible. Even if Mr. Trump isn’t interested in engaging in crony capitalism there are going to be people around him, there always are, who will be interested. Best to just avoid future headaches.
The central banks want your cash. And the “cops” want the data that comes with a cashless society.