I have previously noted that David Stockman has come in from the supply-side cold and has even gotten air time at mises.org.
The greatest regulatory problem — far more urgent that the environmental marginalia Mitt Romney has fumed about — is that the giant Wall Street banks remain dangerous quasi-wards of the state and are inexorably prone to speculative abuse of taxpayer-insured deposits and the Fed’s cheap money. Forget about “too big to fail.” These banks are too big to exist — too big to manage internally and to regulate externally. They need to be broken up by regulatory decree. Instead, the Romney-Ryan ticket attacks the pointless Dodd-Frank regulatory overhaul, when what’s needed is a restoration of Glass-Steagall, the Depression-era legislation that separated commercial and investment banking...
Like his new boss, Mr. Ryan has no serious plan to create jobs. America has some of the highest labor costs in the world, and saddles workers and businesses with $1 trillion per year in job-destroying payroll taxes. We need a national sales tax — a consumption tax, like the dreaded but efficient value-added tax — but Mr. Romney and Mr. Ryan don’t have the gumption to support it.
These two points in particular resonate with me.
1. The banking system has converted its non-systemic risk to systemic risk. If the banking system wants the public to be the ultimate guarantor, then it must accept public regulation. Banks can return to their historical function as depositary institutions and payment processors and Wall Street can market speculative opportunities to high net worth investors.
2. Taxes should be simple and everybody should pay them. Forget the endless lobbying and tinkering over income, capital gains, deductions, deferrals and earned income credits. It is way past time to start debating a VAT. Herman Cain's 9-9-9 plan deserved far more intelligent consideration than it got.