Matt and Jadrian--informative podcast for those that were not adults during the 1990s. I always look at the investment world as an intersection that includes economics, policy, markets, and behavior (investor). To me, the 1990's was a beautiful intersection. Think about the bust of HillaryCare and what Clinton did afterwards--much more free market policy choices, including cutting the capital gains tax, which increased investment incentives. This is post-Reagan direction continued. The market responded and just happened to be at the key inflection point of a new "neural network" economy. Boom. Throw in NAFTA and you get a solid lurch towards a market economy versus a directed (government) economy. No wonder the Soviet Union collapsed. Then the rise in the popularity of the mutual fund, which democratized investing and provided capital. Behavior followed--both by individual investors and the great American instinct to innovate. Boy and girl, did we! And then Newt sees the opportunity and pushes Congress to be fiscally responsible and we get balanced budgets. Can you imagine what our economy today might look like if the Federal government was spending only 16% to 17% of GDP? Federal spending is a tax against innovation. Lighten the burden, get behavior moving towards investing and innovation, and pro-growth behavior blossoms. I used to get pushback in my speeches when I called Clinton the second-best Republican President of the second half of the 20th Century. He was pure politician who let his better instincts work (except for personal issues). Everything came together at the 1990's intersection. Hope you do a follow on podcast to this topic.
Matt and Jadrian--informative podcast for those that were not adults during the 1990s. I always look at the investment world as an intersection that includes economics, policy, markets, and behavior (investor). To me, the 1990's was a beautiful intersection. Think about the bust of HillaryCare and what Clinton did afterwards--much more free market policy choices, including cutting the capital gains tax, which increased investment incentives. This is post-Reagan direction continued. The market responded and just happened to be at the key inflection point of a new "neural network" economy. Boom. Throw in NAFTA and you get a solid lurch towards a market economy versus a directed (government) economy. No wonder the Soviet Union collapsed. Then the rise in the popularity of the mutual fund, which democratized investing and provided capital. Behavior followed--both by individual investors and the great American instinct to innovate. Boy and girl, did we! And then Newt sees the opportunity and pushes Congress to be fiscally responsible and we get balanced budgets. Can you imagine what our economy today might look like if the Federal government was spending only 16% to 17% of GDP? Federal spending is a tax against innovation. Lighten the burden, get behavior moving towards investing and innovation, and pro-growth behavior blossoms. I used to get pushback in my speeches when I called Clinton the second-best Republican President of the second half of the 20th Century. He was pure politician who let his better instincts work (except for personal issues). Everything came together at the 1990's intersection. Hope you do a follow on podcast to this topic.
Thanks, Tal, for the comment! That’s an interesting comment/idea on Clinton being the 2nd best Republican president - thought provoking.
Hope all is well!