And it will be a non-inflationary boom. The gold price provides the best inflation metric out there, and it's telling us that deflation is over and that inflation has not arrived. Two years ago, the world gold price was $250, a signal of deflation. Today's price is about $370 per ounce, which signals reflation. Had gold moved up to $425 or $450, it might have triggered high-interest-rate inflation expectations. But $370 is a comfortable reflationary level.
Supply-siders understand that roaring raw-material indexes are a sign of an industrial recovery, not inflation. They also know that lower tax rates, more liquidity, high productivity, a rapid spread of broadband and strong profits are the building blocks of the next boom.
Think of this: In the early 1980s, almost no one expected a real prosperity wave. Still, we got one. It was the same case in the early 1990s. Right now, pessimism abounds, but the naysayers will be wrong again. The combination of rapid technological advances and market economics is a powerful pro-growth elixir. It has worked well in the past, and it will do so again.