Thursday, January 14, 2010

Strong Dollar and Taxes

So I found myself watching some CNBC this afternoon, and I got a chance to watch the Kudlow Report. Generally I like Larry Kudlow, he's a bit conservative for my taste, but the man has a passion for U.S. capitalism that few others can rival. He was talking about "king dollar" during one of the segments and then in another advocated extending the Bush tax cuts. This is the same Larry Kudlow that used the Budget Deficit and National Debt as a main reason to avoid health care reform, and the same Larry Kudlow that is abhorrently opposed to almost any increased spending measure. So naturally, I was confused. Part of achieving a strong dollar, by Kudlow's own admission, is lowering the national debt and knocking out the yearly budget deficits. But when it comes to increasing government revenue through taxes, he's unhappy.

I suppose it's all consistent with his laissez-faire view of government, but still... In the last decade, neither Repulicans nor Democrats have proved they can spend responsibly. So in the world we live in, where spending is going to happen no matter what, it would seem raising taxes to balance the budget might help strengthen the dollar, which might make Larry a little happier.

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