Forbes, editor of Forbes magazine and 1996 presidential candidate, spoke about
the U.S. economy, the stock market crash and the flat tax plan during the
Burkett Miller Distinguished Lecture Series on Nov. 6, 1997.
is not announcing if he will run for president again, but joked the real reason
he ran for president was to "satisfy" his ambition to host Saturday Night Live.
seriously, Forbes said that the
would survive the stock market crash,
but it could not ignore it." The
stock market fall was a wake-up call," Forbes said.
said that it would not be appropriate for him to give stock market advice for
reasons previously stated by his grandfather.
make more money selling the advice then following it," Forbes quoted.
prevent the crash, the
should have told struggling countries
to "re-peg" their currency instead of raising their taxes. He compared the
international monetary fund to a doctor 200 years ago." They
are bleeding those countries when they really need a transfusion," Forbes said.
could stabilize their money by making
their money sound, lowering taxes, and giving property rights to individuals.
believes that the
economy is strong but it will take work to keep it that way."
nation has the global impact that the
has today," Forbes
main events have made the
the only superpower, Forbes said.
first was the end of the Cold War. It gave the
both security and it
redefined the government as a larger entity."
was it that the anti-government country came to have a huge government?" Forbes
asked. It was because a large government was needed to handle the war efforts,
is the moral movement that citizens have pushed in the
For example, people consume much less alcohol than previously in the 1820s."
took a swig from the jug in those days," Forbes said.
are important to the economy because "economics has a moral foundation."
Morality also helps shape the direction that the nation will follow by
directing human nature's "capacity for good or evil," he said.
is the new economic era. The new era is best symbolized by a microchip, showing
a nation that stretches the mind instead of using its brawn. In addition, the
changes in technology have a simplistic basis." You
succeed most when you provide a product that is simple and easy to use," Forbes
it will need to make some changes to stay strong, starting with the tax code.
have to kill the beast [tax code], drive a stake through its heart, bury it and
hope it never rises again," Forbes said. His solution is to move to a flat tax
plan, like he supported during the last primaries. He also supports
term-limits, campaign reform, vouchers and charter schools for education and
medical savings accounts to replace insurance.
Dwight Lee from the
a counter discussion. He agreed that the flat tax "would be far better than the
mess we have now" but the rates would eventually be increased.
said congressmen would raise the rates slowly, like boiling frogs in water. His
alternative is to eliminate all federal taxes and only have a state tax."
want my tax dollars wasted right in the state of
a chance to answer Lee, Forbes said corruption could be avoided by setting safe
guards such as requiring congress to have a two-thirds majority in order to raise the rate.