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From the Heritage Foundation, a leading RW think tank. I think it's good to know what this shadow government is up to, folks.
For example, Senators Hillary Clinton (D–NY) and Byron Dorgan (D–ND) recently proposed a law that would cap the trade deficit at 5 percent of gross domestic product (GDP). While this may sound reasonable, it betrays an ignorance of the economic forces of nature. Senators might equivalently propose bills to cap the number of calories per home-cooked meal, cap the number of Fs in high school math classes, or cap the force of gravity.
More high(low)lights: The record-high $61 billion monthly trade deficit is a sign of strength, not weakness. It reflects a balance of heavy foreign investment in the high-tech, high-productivity American growth engine. As Treasury Secretary John Snow has pointed out, America is growing much faster than other advanced nations. Nations with trade surpluses like Japan and Germany are economically stagnant and actually suffer much worse budget shortfalls than the U.S. suffers.
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Investment follows growth, not the reverse. Studies show that good institutions lead to economic growth, and hence to higher investment. The policy implications for Congress are profound: faster growth above all else. Yes, investors prefer balanced budgets, but they put their money into nations with reality-based entitlement spending, low taxes on capital, healthy entrepreneurship, transparency, and strong property rights.
In other words, drive the economy into the ground and watch the money flow like water!
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