Comments: Economy shrugs off its pre-war jitters

David

I think you forgot the effects of marginal tax cut rates in the US as a driver of economic growth. US monetary policy has been accomodative for several years. I don't think it's a great coincidence that once the Iraq war was settled (major ground combat) and the US tax cuts were accelerated the US conomy took off. Marginal rate cuts provide greater financial rewards for work and risk taking. Capital gains tax cuts and the reduction of taxes on dividends lower the cost of capital. Lower investment hurdle rates mean far more opportunities qualify for consideration. Merry Christmas and Happy New Year.

Posted by Gary Bezowsky at December 30, 2003 03:58 AM