Sunday, April 11, 2010
claiming that he pays too little in taxes. Of course, there's nothing that prevents him from sending the state of Virginia a check for whatever amount he thinks represents a 'fair' tax, is there? Not that I'd agree with him as I think taxes are high enough, but he'd have more credibility if he was willing to put his money where his mouth was.
BusinessWeek declares Obamanomics to be 'working' as evidenced by the rise in the stock market. Funny, a few short years ago, I remember the likes of BusinessWeek arguing that the (then) rising stock market should not be taken as a sign of growth, that there were all sorts of problems in the economy.
In the 'if all you have is hammer' department, big-fan-of-government regulation BusinessWeek argues that more regulation is necessary to keep 'too big to fail' financial firms from causing more trouble. Not surprising is how proponents of big government don't realize that the best way to keep these firms from causing all sorts of havoc is not with more government regulation but rather to stand back and let the market itself keep these firms from getting too big. The only reason a firm can get that big is because its customers and trading partners know the federal government is not going to let these firms fail. Take away the government backing and both customers and trading partners will immediately hedge their risk by moving their money to smaller firms. Just as investors are encouraged to diversify their holdings to keep any single bad debt from killing their portfolio, financial firms would spread their money around to keep from taking too big a hit if a single (or even a few) firms went under.