Economy Blogjam

Congratulations to my friend Andy Roth, who will be participating in a "Blogjam on the Economy" today at 1:00 pm EST, where he and some of the country's leading economists will discuss anything and everything about the state of the U.S. economy.

Andy is one of the country's finest young economists and is easily responsible for a large chunk of any economic aptitude I possess today. If his invitation to join some of the nation's big-hitters like Larry Kudlow and Russ Roberts doesn't say it all, Andy will prove it to you today. Be sure to check here at 1:00 for a link to the event.

UPDATE: Here's some of the good stuff:

Andy Roth, in response to whether or not the Bush tax cuts are working:

Absolutely. $12 trillion in new wealth with $4 trillion in new shareholder wealth. Those are amazing numbers and yet there are some lawmakers in Washington who are convinced that the cap gains and dividend tax cuts aren't working.

Passage in the Senate is going to depend on the squishy moderate Republicans. Folks like Snowe, Collins, Chafee, etc. Chafee is facing a tough primary challenge so his vote will be important. I think the chances are better than 50%, but even then the tax cuts will only extend to 2010. They need to be brought down to zero permanently.

Russ Roberts, on spending cuts:

The spending cuts are always meager. The question is whether they would [be] any different without the tax cuts. The key is cutting rates rather than revenues. If you can cut rates and encourage savings and growth, that's very different from handing out a rebate. But you're right in the sense that increasing spending is a tax increase regardless of what happens to revenues. Wouldn't it be wonderful to have a President and a party that understand that spending is the true tax on the economy. I'd even settle for a President who knew where the veto pen is located. Is it a secret that President Clinton forgot to share with his successor?

Roth, on the stealth tax on oil companies:

The lawmakers in Washington are using the Constitution as a door mat to come into our homes and take our wallets. They pass the stealth tax and then overwhelming defeat the true windfall tax to "show the world" that they aren't a bunch of meanies (but, in fact, they are). Same thing regarding the Bridge to Nowhere. They defund it, but Alaska still gets the money. "Success, we have tricked the public, now let's spend some more," they say.

A lot of smoke and mirrors.

Paul Hoffmeister, in response to Jim Hamilton's question on how lowering taxes without cutting spending is supposed to help the economy:

It helps the economy by increasing productive enterprise, thereby increasing growth and the tax base. Laffer Curve economics.

Roth, on maximum growth:

Regardless of spending, it's imperative that we cut taxes until we reach the Optimal Laffer Curve Tax Rate. That means zero capital gains taxes, zero dividend taxes, zero corporate taxes, and an overhaul of Social Security and Medicare.

Unfortunately, I've got to get out of the house and run some errands. But this is a great debate. It's all here.