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The End of Supply-Side?

The fruits of a Democratic Congress.

12:00 AM, May 1, 2007 • By IRWIN M. STELZER
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It might seem odd that America's highest earners, billionaire hedge-fund and private equity operators, seem to agree with the Democrats. They have turned Greenwich, Connecticut, home of hedge funds managing $100 billion in assets--some 10 percent of the funds controlled by the world's hedge funds--into a Barack Obama ATM machine. Almost to a man (few are women) the hedge-fund crowd is throwing its considerable financial weight behind Obama, who is attacking Hillary Rodham Clinton from the left. Hillary and Bill Clinton can only gnash their teeth in frustration. One of Obama's economic advisers says that the charismatic Illinois senator has nothing against the rich, it is just that he wants to help the poor, "and the resources have to come from where people are doing better."

Nothing new with the nation's billionaires: think George Soros. America's billionaires have always leaned left, while mere millionaires have leaned right. So America has joined France and Britain as places in which voters are being given a choice of economic policies. In France, they must choose between Nicolas Sarkozy's move to the right and freer markets, and Ségolène Royal's socialist nostrums. In Britain, they will have to choose between Gordon Brown's Labour party's interventionist state and . . . Tory policies to be determined when the new leadership decides what it is for. In America, the choice is between supply-siders and redistributionists. These elections matter.

Irwin M. Stelzer is director of economic policy studies at the Hudson Institute, a columnist for the Sunday Times (London), a contributing editor to The Weekly Standard, and a contributing writer to The Daily Standard.