Posted on 10/23/2002 8:06:43 PM PDT by Tumbleweed_Connection
Democrats are bemoaning their inability to get voters focused on the economy in the middle of a war when Americans are more concerned about the national security than they are about listening to Democrats carp about the Bush economic policies especially when they lack any substantive plans of their own.
Writing in Fortune magazine, Rob Norton taunts the Daschle-Gephardt team, saying they not only don't have a plan of their own - they don't even have an outline of one, or any ideas worth discussing.
Using words such as tragic, deplorable, abysmal, and atrocious to describe the Bush economy, Daschle ranted for half-an hour on the Senate floor, charging that "America has seen record job losses, weak economic growth, declining business investment, a failing stock market, shrinking retirement accounts, eroding consumer confidence, rising health-care costs, escalating foreclosures, and vanishing surpluses."
As to what can be done about this alleged situation, which began as President Clinton left office, Daschle hasn't a clue. Moreover, as Norton notes, his facts and figures leave a lot to be desired.
The claim of "Record job losses" Norton explains, fails to recognize that the employment rate held more or less steady throughout the Clinton recession. Moreover, unemployment is below 6 percent - considerably lower than it has been in past recessions.
Daschle's dishonesty become evident when he attempts to blame the recession on the Bush administration which in fact came into office saddled with the shrinking economy it inherited from the Clinton administration. Moreover, Bush's quick action in pushing through a tax cut helped blunt the effects of the recession and kept it from getting worse.
Incredibly, Daschle had the gall to ask what plans President Bush had for strengthening the economy, when he and his party have absolutely none of their own. Moreover, Bush's economic plans are already in effect - tax cuts, government and stimulation of the economy through increased spending in areas where it will do the most good.
Daschle, on the other hand, can only say "I call on the administration to work to develop an economic policy that helps the average Americans who are truly suffering."
Daschle, and his party have nothing to say about monetary policy. Norton asks, do they favor more interest rate reductions by the Federal Reserve, and notes that no answer is forthcoming.
On tax policy, Dashle, Gephardt and company never saw a tax cut they could live with - some Democrats are even talking about rolling back the Bush tax cuts.
Gephardt has said he wants to provide a tax cut for middle-income families but he provides no details.
The Democrats, far and away the biggest spenders of all are whining about the vanished surplus which, given the opportunity they would have spent at the drop of a hat, but haven't whispered a word of how to restore the surplus or balance the budget.
Norton says that even if the Democrats were able to repeal the Bush tax cut, it would not have any effect on producing a surplus for at least the next ten years.
As for government spending as a stimulus, the free spending Democrats haven't come up with any worthwhile ideas, other than extending unemployment benefits and drought relief, "as well as a few longer-term ones, like their generous--and costly--prescription-drug benefit plan for retirees."
None of these kinds of schemes, Norton wrote, would help strengthen the economy and all of them, he adds, would only make the economic situation worse.
All te Democrats have had to offer is a series of programs offered by House Minority Leader Dick Gephardt who recently outlined a five-point plan for what the DNC claims will get our economy moving. The so-called plan is exceptionally short on details and long on traditional Democrat spend-and-elect welfare programs which would not contribute to strengthening the economy.
Short-Term Stimulus: $125 billion in school construction, domestic anti-terrorism infrastructure and health care assistance; $75 billion in one-time rebates and tax cuts immediately to working families and company investments.
Long-Term Fiscal Responsibility Plan: Long-term corporate welfare cuts of $100 billion as outlined in a proposal with Senator McCain, a ban on sham foreign incorporations and elimination of overseas tax loopholes. Bipartisan summit agreement to impose triggers, caps or other mechanisms to ensure long-term fiscal responsibility and balanced budgets.
Corporate Responsibility Measures: Requires CEO stocks to have the same limitations as employees. Mandates CEO "golden parachutes" be treated in the same manner as employee pensions when companies face financial difficulties.
Pension Reform: Institutes immediate portability of pensions for employees who move from one employer to another. Recommends long-term implementation of universal pension system.
Minimum Wage Increase and Extension of Unemployment Insurance: Raises minimum wage to $6.65 an hour by January 2004. Extends unemployment insurance for those who have lost their jobs.
None of these kinds of schemes would help strengthen the economy and all of them, as Norton has pointed out would only damage our economic situation and prolong the recession.
Why do people keep talking about the economy? Except for burdensome tax rates and regulatory schemes, the government is not involved with it and should not be! This is not a socialist country - the government and economy are supposed to be separate!
The only thing the government could do to improve the economy right now would be to reduce the length of the Code of Federal Regulations by a substantial amount and eliminate all corporate and personal income taxes.
That is it! Nothing else! There will be no 5 year plans, and there Great Leap Forward.
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