[Futurework] We're waiting, Mr Snow

[Keith Hudson]

A couple of days ago I suggested that Paul Krugman and other economists are 
following the wrong scent when criticising Bush's tax cut policies. It's an 
bade policy, of course, and the justification given by Bush is pure 
hogwash. The policy will do relatively little to stimulate the American 
economy. The tax-cut is really little more than a thank-you to rich 
Republican contributors to his election funds, and a mild reward to the 
middle-class,

However, a weak-dollar policy would be a much more powerful stimulant and, 
as I mentioned, John Snow, Bush's new Treasury Secretary has already 
dropped some carefully phrased hints that a weaker dollar would not come 
amiss. Dutifully, the dollar sank a little more.

Ed Weick of this List was kind enough to say that I might have a point. So, 
it appears, does Merrill Linch, the large American brokerage and investment 
bank. In a report out today ML has opined that the weak-dollar has already 
added 2% to nominal growth in the US. This, of course, is nowhere near 
enough yet to get American export industries into gear again. I think we 
can confidentaly expect that John Snow will drop another hint anytime soon.

Keith Hudson

Keith Hudson, 6 Upper Camden Place, Bath, England

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