Comments: Will the world slow down next year?

From USA Today, "Companies in the Standard & Poor's 500 are expected to boost capital spending 5.5% this year, reversing two years of cutbacks, says Howard Silverblatt, strategist at Standard & Poor's. They boosted spending 5.7% in the second quarter after a first-quarter increase of 5.5% - the first back-to-back quarterly increases since the end of 2001, S&P says."

Capital spending is the mother's milk of economic growth. I'm optomistic about the economy's prospects if central banks don't overreact and crash the money supply. If only the central banks would get out of the business of economic management and concentrate on moderate and steady growth of the money supply, we would all be better off.

Capital spending, competition, low marginal tax rates on income and capital will promote long term steady growth which will erase deficits if government spending simply slows. It always works.

Posted by Gary B at September 5, 2004 06:58 PM