October 16, 2003

Pssst...Tax Cuts Are Working

From today's Opinionjournal.com:

The good economic news keeps coming. Yesterday's reports included bullish growth for September and early October from 10 of 12 Federal Reserve districts, and another spate of sharply higher corporate earnings. Sooner or later all of this is going to get noticed by the American electorate, perhaps even by the Democrats running for President...

...there's no doubt that the second round of Bush tax cuts, which advanced the marginal-rate reductions to this year, are having exactly the growth effect that supply-siders predicted. They boosted incentives, both for individuals and small businesses that pay taxes at the individual tax rate, and investment has accelerated in turn.

The news on the employment front is generally positive as well. (via Andrew Sullivan) Here's another fairly recent article on employment numbers.

But before anyone gets giddy, we would do well to remember how dicey a science we're talking about, as Irwin Stelzer points out in "The Unknowables".

UPDATE 10/17: More from Forbes.

Posted by dan at October 16, 2003 1:59 PM