Time for Real Change on the Economy and Taxes
Time for Real Change on the Economy and Taxes by Newt Gingrich (more by this author) Posted 03/18/2008 ETUpdated 03/18/2008 ET The news on the economy this week is increasingly unsettling. Gas prices continue to rise, with inflationary ripple effects throughout the economy. And the bust of the subprime mortgage market has now spread throughout the credit markets to such a degree that Bear Stearns, the fifth largest American investment bank, was sold last weekend in a firesale. Worse still, Wall Street's banks have essentially stopped lending. The appetite for any type of risk has come to a screeching stop. The problem is that a modern economy can't grow, let alone be sustained, for very long when banks stop lending. Companies use loans to finance operations, new equipment, and new acquisitions. That means if companies can't borrow, many will ultimately go out of business and thousands of people will lose their jobs. First Step: Immediate Action Needed to Stabilize the Hous...