So let me get this straight – earnings are up, ISM-manufacturing is up, ISM-services is up, productivity is up, factory orders are up, media stocks are up, the overall stock market is breaking records, household net worth is up, financial assets of individuals and corporations have increased vastly more than their liabilities, and jobless claims are way down. These are just a few snippets of continued economic prosperity.
There is no bubble. There is no recession. And with core inflation a mere 2.1 percent over the past twelve months, the Fed can declare victory and go home.
The Dow is enjoying its best winning streak since 1955. It has risen in 21 of the last 24 sessions. The S&P 500 crossed 1500 this morning for the first time since September 2000 (when Dick Cheney first said that the economy was on the “front end” of a recession).
Now, as the Republican presidential candidates prepare for tonight’s debate at the Reagan Library in Simi Valley, California, will they talk about the Bush stock market/economic boom?
Will they talk about George W. Bush’s low tax rate economic strategy that rescued the economy?
Will they talk about the Democrats high tax strategy unveiled in their debate last week?
Will they talk about Ronald Reagan’s low tax, deregulatory, disinflation restructuring of free market American capitalism 25 years ago that unleashed a 25 year long boom that has produced 95 percent prosperity with only 5 negative GDP quarters?
There is a clear difference between the two parties on taxes and the economy, just as there’s a clear difference between the two parties on war and national security. Will the Republican 10, or the Big 3, make these key points in this evening's debate?