http://www.nytimes.com/2008/03/26/business/26supply.html?pagewanted=1&ref=business
The title of the NYT article may be David Frum's new book called Comeback. Supply side economics may be fine in principle but it needs to be supplemented by big reduction in government spending.
I would advocate it for India any day though - because in India government is not only inefficient but very very dishonest. Indian taxpayers should pay only for Defence and Foreign Affairs in line with san's "Starve the Beast" model.
Everything else (yes that includes Health, Education and other government "services") should be left to Indian society. I have no doubt we will be transformed in 15 years if only government spending (and therefore government) is eliminated. Since the government and the "secular" state in India has only promoted Semitic values, it will also ensure that we have a civilizational transformation back to our Indic roots
2 comments:
The average American family spent about 4% on energy in the 1990s. Currently this figure is over 6%. This can make a lot of difference to the health of the economy. Clinton administration got credit for this fallout of the first Gulf war and also the dot com bubble. Like San mentioned in the post 'Starving the Beast', governments enjoy or suffer the consequences of the policies of their predecessors.
Only the leftist NYTimes can deny credit to Reagan administration for economic stability.
Rajeev..
Its a wonderful thought.. Infact, if we look at our pre-british kingdoms, it would be composed of numerous small rulers, who would pay tribute to the king.
As per dharampal's estimate, around 20% of local revenue is given to the king, while the remaining 80% is spent locally.
We need total administrative reforms badly..
The present beurocracy is what british created for their imperialistic design.. making the beurocrats accountable to them, instead of our people.. sadly, the same system is now used by the vested interests again to loot india..
We have to make the politicians and beurocrats accountable people at the lowest level..
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