way to improve America's competitive status. In his speech this week the Secretary calls for a lower capital gains tax. He correctly points out that greater incentives to save money results in more capital available to businesses to finance new te chnologies and product development. Mosbacher also calls for anti-trust reform to allow U.S. businesses to work together on new product research and development. Other reforms might include further deregulation of transportation. Current regulations at th e state level especially add billions of dollars to the costs of U.S. products. Further, the U.S. could eliminate the prohibition on financial institutions engaging in-both commercial banking, that is, accepting savings accounts and making loans, and inves t ment banking, which involves the marketing of stocks. This division makes American banks less efficient. U.S. businesses often must secure financing from European or other foreign banks., World's Best Products. Mosbacher's rhetoric does not reflect these f ree market concerns. For example, after his recent speech the Secretary said that if Americans "want to do more than flip the hamburgers for the world, we've got to come out with quality products." To be sure, America does not want to be a nation purveyin g only fast foo& America is not such a nation now, and the statistics provided by Mosbacher's own government confirm that America is not about to become a nation of hamburger flippers. Mosbacher should know this. And he particularly should know that he sho u ld not use statements that perpetuate the myths of industrial planning advocates that the U.S. produces only low quality goods and that most new American jobs are low paying service sector positions. In fact, whole classes of U.S. products, for example, c o mputers and aircraft, are the world's best. And Mosbacher too should know that, of the at least 18 million net new jobs added to the economy since 1982, over half are in the income bracket of $20,000 or more per year. Tle question thus is: Does Mosbacher r eally believe in the government planning and regulation of the economy that some of his rhetoric indicates? Or does he favor free market solutions to America's competitiveness problems, as some of his specific policy recommendations would suggest? If Mosb a cher believes the latter, which happens to be George Bush's stated policy, he must understand that his rhetoric is opening the door to policies that have proved time and again to harm rather than help economies. If he truly wants to make America more comp etitive, and if he believes in free market policies, then he should say what he means and help the Administration by promoting such policies explicitly. Edward L. Hudgins, Ph.D. Director, Center for International Economic GrowthF or further information: Edward L. Hudgins, ed., MakingAmerica More Competitive (Washington, D.C.: The Heritage Foundation, 1987). Richard B. McKenzie, Competing Visions (Washington, D.C.: The Cato Institute, 1985). David Birch, lob Creation in America (N ew York: The Free Press, 1987).