CNBC commentator calls for 'King Dollar.' But is it enough?
Larry Kudlow has been pounding the table for a stronger US dollar as the way to beat the recession. But now that the dollar has bottomed out, why isn't the recovery sticking? Lowering taxes might be a good place to start.
Larry Kudlow has been pounding the table for a stronger US dollar as the way to beat the recession. But now that the dollar has bottomed out, why isn't the recovery sticking? Lowering taxes might be a good place to start.
If you've been anywhere near a TV tuned to CNBC circa 7 to 8pm over the last year or so, you've likely heard Larry Kudlow pounding the table for a stronger US dollar as the solution to America's decline.聽 The reality of the dollar is that it bottomed over three years ago and over the past 6 months it's been on fire (relative to a certain collapsing demi-currency that shall not be named).
But even though Larry's gotten his "King Dollar" at long last, it's still not doing the trick in terms of helping the economy.聽 Here's what he thinks is missing (via CNBC):
Obviously the problem isn't current low tax rates, it's the perception that tax rates are undoubtedly about to go higher in the future - regardless of who gets elected, I'm afraid.
One minor rebuke to Larry's point is that under Clinton, we had high taxes, low interest rates and a solid dollar (with the accompanying disinflation in oil, food costs etc) - and that seemed to work out just fine.聽 I'm not suggesting we can go back to that environment - the world is a different place now 15 to 20 years later.