Tea Party Power to Solve the Debt Problem

by Larry Kudlow at townhall.com

…In other words, I’m proposing a growth solution to the debt problem. Lower spending is pro-growth. So are lower tax rates. A program like this could get yearly budget deficits down to a manageable 2 to 3 percent in a couple of years. And getting the debt ratio back down to something like 50 percent also would be quite manageable.

Incidentally, limited spending and lower debt would take the pressure off the Federal Reserve to inflate the money supply, sink the dollar, and raise the inflation rate to 4 or 5 percent or worse.

So here, once again, is the plan: Gridlock in Washington to stop the big-government assault until Congress is overturned in November. After that, a return to growth, by way of reduced spending and lower tax rates.

There is a revolution going on in the heartland of this country, and it’s aimed against Washington’s profligacy and controls. There is still a way out. It’s called free-market populism. Read more...