Hi, LGL:

 

(1) Today (July 30, 2003), the Federal Reserve released its "Beige Book" report, which says economic growth has picked up a notch since early June and there are signs of economic strengthening, especially in the manufacturing sector, though consumer spending has been lackluster.

 

This report is an indication that the economy has been stabilized by the Bush administration's expansionary fiscal policy and the Federal Reserve's expansionary monetary policy.

 

(2) The federal government is the private sector's largest customer. Each year, it grants large contracts to private-sector industries (e.g. defense contractors, telecom companies etc.)

 

Recently, there have been complaints about the government giving contracts to MCI (formerly Worldcom), because critics say it's unfair for the government to give contracts to a company that has failed to play by the rules.

 

This shows that the government's patronage involves big money, and when government money flows into the private sector, it creates demand for its goods and services. In some degree, this spurs the economy at large.

 

(3) Large corporations like Microsoft do have profit-sharing schemes. Recently, Microsoft announced that it would scrap its option plan and replace it with a program that would give employees Microsoft shares if the company achieves certain targets.

 

Please keep writing and publishing books and don't forget to share with me the royalty money you earn. Such "profit sharing" would make me laugh. Like they say, put your money where your mouth is.

 

For instance, you can launch your own company (Lawrance G. Lux Corporation) and put me on your payroll, so that I can share profits with you.

 

If you like this arrangement, I'd write a few pages of "spin doctor trash" to advertise it as your profit-sharing scheme and recommend it to as many other companies as possible. Let's see if they like it too.

 

(4) There has been quite a bit of name-calling from the political left. For example, Paul Begala calls names almost every day on CNN's "Crossfire". Doesn't sound like good taste to me, since name-calling is a sign of desperation. When one runs out of rational things to say, one starts to call names.

 

You "have never retracted one word of those (i.e. name-calling) statements"? Fine, but take care of yourself, becuse names can fly, and if you don't retract, they might boomerang and cut yourself. At least, authors of prominence like you need to show some class, don't they?

 

By the way, can you tell me how much of this bunch of "estimates" below which you provided recently is truth, nothing but truth?

 

("GDP down by $4 trillion per year since 1999"; "deficit level doubled and GDP loss tripled by tax cuts"; "corporate paid taxes cut by 90%"; "U.S. casualty risk up 4% per day"; "zero power vacuum impact within 180 days of U.S. troop withdrawal"; "potential for friendly government up 65% within 30 days of U.S. troop withdrawal", etc. etc.)

Sincerely,

 

Robert M. Liu