Jewish World Review Oct. 8, 2002 / 2 Mar-Cheshvan, 5763

Jack Kelly

Jack Kelly
JWR's Pundits
World Editorial
Cartoon Showcase

Mallard Fillmore

Michael Barone
Mona Charen
Linda Chavez
Ann Coulter
Greg Crosby
Larry Elder
Don Feder
Suzanne Fields
James Glassman
Paul Greenberg
Bob Greene
Betsy Hart
Nat Hentoff
David Horowitz
Marianne Jennings
Michael Kelly
Mort Kondracke
Ch. Krauthammer
Lawrence Kudlow
Dr. Laura
John Leo
Michelle Malkin
Jackie Mason
Chris Matthews
Michael Medved
Kathleen Parker
Wes Pruden
Sam Schulman
Amity Shlaes
Roger Simon
Tony Snow
Thomas Sowell
Cal Thomas
Jonathan S. Tobin
Ben Wattenberg
George Will
Bruce Williams
Walter Williams
Mort Zuckerman

Consumer Reports

Bu$h and the bu$ine$$ of war | The most obviously false of the canards of the Left, expressed most recently by ditzy diva Barbra Streisand in her "confidential memo" to House Minority Leader Dick Gephardt (D-Mo), is that businessmen want war in order to bolster their bottom lines.

"How can we ignore the obvious influence on the Bush administration of such special interests as the oil industry, the chemical companies, the logging industry, the defense contractors, the mining industry, and the automobile industry?" Streisand wrote. "Many of these industries, run by big Republican donors and insiders, clearly have much to gain if we go to war against Iraq."

If Bush truly were acceding to the wishes of his former colleagues in the oil patch, he'd be sounding a lot more like Al Gore. Businessmen hate uncertainty and instability. The last thing oilmen want is the disruption in oil supplies that war with Iraq is almost certain to bring, at least in the short term.

While oilmen may be the biggest doves in the business community, they have a lot of company. The stock market has just completed its worst month in the last four years. While investors have many reasons to be nervous, war jitters may be foremost among them.

Wall Street's war jitters are an argument for bringing matters with Iraq to a head sooner rather than later. The longer the uncertainty, the more the markets will be roiled, and the greater the harm to our economy.

Victory in Iraq should give a big boost to the stock market. But it may not be enough, because the world economy was ailing before war clouds formed. One reason why I am not sanguine about "globalization" is because I think it more likely the rest of the world will drag us down than that we will lift the rest of the world up.

Japan has been in a recession for more than decade, a recession which may be worsening. The stock market there hit a 19 year low this week. The entire Japanese cabinet has resigned.

Germany is fast becoming the Japan of Europe. The head of Germany's stock exchange said last week he plans to shut down Germany's equivalent of the Nasdaq early next year. The Neuer Markt has lost nearly half its value in the last two and a half years.

The Chinese economy, whose claimed growth rates were the envy of the industrialized world in the mid-1990s, has been stagnant since 1998, said economist Thomas Rawski.

Sickly as they are, the German, Japanese and Chinese economies look robust compared to most in Latin America. The economy of Argentina is in free fall. Argentines has so little faith in their currency and in their banking system that barter is supplanting cash transactions. The Argentine collapse has pulled down the Uruguayan economy, and Brazil seems to be following them into the toilet. In Venezuela, Castro wannabe Hugo Chavez is plunging his country to the brink of civil war. And Mexico is trying to export its unemployment problem by encouraging illegal immigration into the United States.

We may be on the verge of a worldwide depression, the first since the Great Depression of the 1930s. We need to think carefully about how we might head it off...or at least, how we might ameliorate its effects on the United States.

We must stop trying to assign political blame for economic conditions politicians had little to do with, and try to figure out what our political leaders can do to make things better, or at least to keep them from getting worse.

We need measures to stimulate the economy in general, and to revive the stock market in particular. A 20 or 25 percent reduction in the capital gains tax would be a very good idea, because history shows cuts in capital gains rates produce, over the intermediate term, increases in federal tax revenues. Congress should also increase the amount investors can deduct from their income tax for capital losses, and raise the ceiling on contributions to 401(k)s.

If the price of these reforms is to repeal the income tax rate cut for those in the highest bracket, it's well worth paying. It is more important to get our economy growing again than to fatten further the fattest wallets in the land.

Correction: An earlier column said Sen. John Kerry (D-Mass) had won the Medal of Honor while serving in Vietnam. This is untrue, as many readers have reminded me. John Kerry was awarded the Silver Star and the Bronze star for his service as a naval officer in Vietnam. It was former Sen. Bob Kerrey (D-Neb) who won the Medal of Honor.

Enjoy this writer's work? Why not sign-up for the daily JWR update. It's free. Just click here.

Comment on JWR contributor Jack Kelly's column by clicking here.

10/01/02: Gore's calculated risk may well get him the Dems' nomination
09/25/02: Schroeder may find the fruits of victory sour
09/25/02: Making Saddam change his spots
09/19/02: Bush's resolve already has paid dividends
09/17/02: Courageous Iranians
09/13/02: If you never served in the military, you have no right to an opinion
09/10/02: Why the 'air marshals' will fail
09/05/02: Resurrecting the "Happy Darky"
08/31/02: Are Bush's inactions against Iraq calculated?
08/23/02: Dems can't take the minority vote for granted any longer
08/20/02: No proof of Saddam's wrongdoing? Yeah, right
08/15/02: Mineta's war on what?
08/13/02: When Gore said he wanted to be his 'own man,' what was he thinking!?
08/08/02: Picking a tree for Cheney's hanging
08/06/02: Fears about the Department of Homeland Security are misplaced
08/01/02: The greatest strategic deception since Eisenhower convinced Hitler the Allies were going to land at the Pas de Calais?
07/30/02: State Dept.'s anti-American actions
07/26/02: Journalists are making sure Americans can't differentiate between the stock market and the economy
07/23/02: Iran's is on the verge of a social and political explosion. So why is media ignoring it?
07/17/02: FBI isn't supposed to stand for Foolish, Blind and Incompetent
07/12/02: The ICC tramples on rights Americans take for granted
07/09/02: Was LA International Airport shooting, in fact, good news?
07/02/02: What the "intelligence community" can learn from Alexander the Great
06/28/02: Muslim link in Oklahoma City bombing revisited
06/25/02: A good environmental scare needs two ingredients - an impending catastrophe, and someone to blame for it
06/21/02: Stirring the security pot
06/18/02: Why the military is so messed up
06/14/02: Vast majority $68.7 billion proposed for weapons will be spent on systems of little use in the war on terror
06/12/02: Bush saw them and raised them, and he's holding the aces
06/10/02: Some heads need to roll
06/04/02: A new draft for the 'war on terror'?
05/31/02: So the FBI has finally caught up to our priorities?
05/29/02: Taking on common sense
05/23/02: Political terrorists
05/21/02: There is a great deal to fret about, but I've never been more optimistic
05/15/02: If there is a way for America to lose the war, Gen. Tommy Franks can find it
05/13/02: Impartial justice against Americans by the UN?
05/07/02: Want to win the 'war on terror'? Reinstate the draft
05/03/02: An expanded NATO is needed as a counterweight to the UN and the EU
04/29/02: Islamic 'smarts'
04/26/02: Did Bush play his Aces with Abdullah wisely?
04/23/02: Why peace in the Mideast is closer than ever
04/19/02: What the Arabs of Gaza and the West Bank gained from the "peace accords"
04/17/02: Logical Muslim allies
04/10/02: How to guarantee an infinite Mideast war
04/08/02: Saddam's American friends
04/05/02: Arab winners and sinners
04/01/02: Why is the commander of U.S. Central Command not coming clean to the American people?
03/31/02: Dubya under attack by conservatives
03/26/02: Saddam watch coming to an end?
03/21/02: Get the Jews!
03/19/02: It's time pols and gov bureaucrats be held to the same standard of accountability we insist for corporate execs
03/15/02: Khaki Throat
03/12/02: Making foreign cheaters pay
03/08/02: Timidity and indecision by senior American commanders
03/04/02: Why 9-11? Ex-CIA officials come clean
02/25/02: Don't rule out a quick victory --- even if prez says otherwise
02/21/02: Saving our military from itself
02/19/02: Front Page fiction
02/15/02: Our European allies are like the fat kid who wants to play quarterback
02/13/02: Is the Army in danger of becoming "irrelevant"?
02/11/02: So, I "propagate hatred"
02/06/02: Bush whacking the media
02/04/02: Why serious folks disregard the European Union --- and why Bush must, too
01/30/02: Give economy pneumonia in order to protect it from a cold
01/28/02: Media is its own worst enemy
01/25/02: Journalists making road to peace a bumpy ride, or: A case study in stupidity
01/23/02: Toward a stronger defense at a lower cost
01/21/02: How Bush could be Generations X and Y's Kennedy ... and guarantee a GOP victory in the midterm elections

© 2002, Jack Kelly