Posted on 12/20/2008 3:09:04 PM PST by SeekAndFind
What is Washington waiting for? The inauguration is less than five weeks away: At the rate we’ve been going, another 500,000 jobs will be lost by then. The downward spiral is deepening and accelerating: Congress and the president must act now.
American families have lost about $11 trillion in net worth as securities and home values have plummeted. This translates into about $400 billion less annual consumer spending, net of government safety-net funding. Exports won’t grow to make this up, as the dollar has strengthened with investors worldwide clamoring for its relative security. Investments won’t make up the gap either, as bank loans and secondary-market financing have shrunk and as fresh equity is virtually non-existent.
So this is surely the time for economic stimulus. But — and this is the crucial point — the government can’t just make itself bigger and more oppressive in the guise of stimulating the economy. That would make matters worse. Nor should we forget that fiscal stimulus is but one part of the solution. As Christina Romer, Barack Obama’s designee as chairperson of the Council of Economic Advisors concluded from her study of the Great Depression, bad monetary policy was its greatest cause and good monetary policy was its most effective cure. The Fed should continue to expand the money supply. And, it should confirm that it will not tolerate deflation — the pain of inflation pales in comparison.
That being said, a stimulus plan is needed without further delay, and there are some things that Republicans should insist on.
The first is that tax cuts are part of the solution. Harvard professor and economist Greg Mankiw points out that recent research confirms that tax cuts have a greater multiplier effect than new spending — more economic bang for the federal buck. We should lower tax rates for middle-income families and eliminate their tax on savings altogether — no tax on interest, dividends or capital gains. Let’s also align our corporate tax rate with those of competing nations. These actions will rapidly expand consumption and investment, and right now, time is of the essence.
On the spending front, infrastructure projects should be a high priority. But because infrastructure projects involve engineering, environmental studies, permitting and contracting, they can take a long time to actually boost the economy. Spending to refurbish and modernize our military equipment is urgently needed, and it has a more immediate impact on the economy. A great deal of our armament was damaged or lost in the Middle East, and the rest is long overdue for maintenance.
We should also invest to free us from our dependence on foreign oil, not by playing venture capitalist, but by funding basic research in renewables, material science, combustion, nuclear reprocessing, and the like. During the 2008 campaign, virtually every candidate agreed on the need for an “Apollo-like mission” to achieve energy independence. Now is the time to start.
Cities and states will clamor for government dollars. Like the Big Three automakers, states should first take advantage of the downturn to do some needed cost cutting and restructuring. State employee numbers, pensions, and health-insurance premium sharing — as well as duplicate and ineffective agencies and programs — should be high on the hit list. State budgets should be brought in line with those of the most efficient of their comparables. And the federal government should look to ease the burden of mandates on states, like Medicaid.
Republicans should also lay down a gauntlet: All new spending projects should be selected by the responsible federal agency according to published criteria, not by congresspersons and senators based upon favors and politics. Republicans should commit to vote no on any stimulus bill with earmarks that have not been voted upon by their entire body.
There is a danger that new spending and deficits will lead to runaway inflation, flight from the dollar, and another economic crisis. It is essential, therefore, that Congress and the president commit to reform entitlement spending as soon as the economy recovers. With the footing of our long term economy at risk, with entitlements already reaching 60 percent of federal spending and with baby boomers nearing retirement, this can be delayed no longer.
We must also be careful to avoid burdening the economy with excessive regulation in response to the need to reform regulatory oversight of the financial sector. Going too far could cripple the entire industry, further tightening the credit markets. And we should make it clear that Washington will not act to virtually impose unions on small business by eliminating the right of workers to vote by secret ballot in the workplace. This “card check” payback for the AFL-CIO’s support of the Democrats would devastate business formation and employment.
The Democrats may want to wait for Obama, but the country needs action now. Republicans can — and must — play an important role in shaping a stimulus bill that makes sense for America and lays a foundation for future prosperity and growth.
--— Mitt Romney is the former governor of Massachusetts.
I’ve never seen Mitt not well put forward positions. He’s good. Liberal, moderate, conservative, pro gay, pro family, you name it.
Political execution? Nope. Nada. Zip.
He had a perfect laboratory in Massachusetts to build coalition, establish a record as a fighter and a winner.
But 24 months into his Governorship, he moved out of state, only coming back for his Hillary like Romneycare intervention in the Health care market, now Soviet like, unremembered.
Yup. It’s the same group of disruptive trolls, too. I see the name and know exactly what they’re going to spew.
As an aside, I don't expect even one conservative to agree with me on every issue or every candidate. I do expect however, we may occasionally disagree. And when we do disagree, I don't pull out the, "You're not a good conservative because you disagree with me about this," card. That's promoting "group think" which is also a tactic utilized by the left, to keep their "troops" under control. Your comments strongly suggest you approve of such Liberal measures. I don't.
Have a good one! : )
ROTFLOL. The ONLY Bigots on FR have been the knee-jerk cultist RomneyBOTs.
THE REAL DEAL:
Post a fact. Response by cultist RomneyBOT: " You are a bigot. You belong on drugs. Romney is devine."
Post a url. Response by cultist RomneyBOT: " You are a bigot. Romney is above reproach and cannot be criticized."
Post a Romney comment rebutting another Romney comment. Response by cultist RomneyBOT: " You are a bigot. Gov. Palin is sick and belongs at home with her children."
Oh just hush up with that already. Maybe some people have a problem with his religion, other people have a problem with the fact the guy’s a Liberal and a fake. So stop treating all defiance of Romney as bigotry the way Libs treat all critisism of Obama as being latent racism. In both instance liberalism is the root cause of the rejection.
A socialist plan.
That some strong
...I didn't know they spiked it so hard.
The virulent Romney-haters are too obsessed with bitterness to come up with ideas.
They desperately cling to a few dumb comments he made 15 years ago, and are literally stuck in an orgy of bitterness as it relates to current political reality.
They are stuck on hatred, as Natl. Guard Gen. Russel Honore said.
(actually Gen. Honore used the term, "stuck on stupid"... but you get the point, I'm sure)
This is one of those unguarded moments when the Romney hacks reveal what they really think of conservatives.
Yup, and abuse the graciousness of our host on this forum.
You attack him and others wrongly. They are correct.
You are wrong. Also, you are ignoring that part of Team Romney spent
the entire preElection2008 attacking Gov.Palin and her family.
Do you hate women, too?
Oh yes. Your message is coming through loud and clear.
More of your "over the top" observations of Romney.
Thank you. I was hoping it would.
Name me one more liberal...one who has instituted gay marriage, socialized medicine, $50 taxpayer-funded abortions, a permanent assault weapons ban, and the complete homosexualization of the public schools.
I’ve challenged you to do so before, but you’ve never given me a name or the data to back it up.
And so, until someone can show me another Governor in the history of the republic who has done all of the above, I’ll continue to call him what he is: the most liberal Governor ever.
What, you want conservatives to know how much you despise them? You know, Mitt will be angry with you!
ROTFLOL. How ironic. Dispicable Mitt Romney, hater of successful women as Governor,
hater of citizens having the right to vote on, say, gay marriage or socialized medicine,
hater of dogs having protection from not being strapped to the roof of a car,
hater of free enterprise in medicine,
hater of the Massachusetts Constitution,
has his troops here on FR pushing DNC's ultimate wet dream.
We like Mitt Romney. Here Mitt is laughing it up having imposed HillaryCARE=RomneyCARE
on the Commonwealth of Massachusetts for his liberal, DNC, friends (here gloating).
James Carville (DNC): "It's a feel-good story, this Romney thing. Romney is an ascendant guy."
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