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.
Romney/Chafee 2012
“Romney at least understands economics”
In this commentary, Romney demonstrates that he is a Keynesian and probably a corporatist. IOW, a socialist.
We already know from his record in MA that he is a pro-sodomite, pro-abortion, anti-gun social liberal.
What a great combo.
“One can only hope that Evangelicals and other bigots will get over themselves and vote for Mitt.”
I’ll never support a pro-abortion, pro-gay marriage, anti-gun, pro-bailout big government Republican, which is exactly what Mitt is.
“Phony tax cuts are the bait for stupid people.”
Exactly.
And tax cuts accompanied with increased spending, fiscal deficits and currency devaluation are suicide for the long term health of any economy.
“...but he would have made a decent Secretary of Treasury or Secretary of Commerce.”
No, he would not.
Romney has demonstrated that he is an unprincipled man who is not fit for elected or appointed civil government office anywhere, at any level.
On the other hand, he’s probably a perfect fit for Wall Street.
Mitt makes a lot of sense. It’s too bad that John McCain knows nothing about economics.
Success in the private sector, especially MBA exec management success, is very different from understanding economics and embracing limited government in a nation of free people and self-determined commerce. Those successful MBA execs didn't get that way because they were working in a free-people framework. They operate in a manipulative, hired work concept, and for the most part, they're the employers. They see their jobs as to be managing execs, MBAs, for the government, with taxpayers as the employees. They manipulate the government to tell us how to earn and pay our taxes right. Romney says "cut regulations," and you grasp it as proof he understands the limited government concept. I read it as just one more bit of Romney sweet-sounding sell-the-board spiel that saps fall for.
I wish some people would get over their hatred for this guy ...
I wish Romney people would get over their lust for the word "hatred" to describe the motivations of those with whom they disagree.
Anybody who believes that Romney is going to get the GOP and America out of this mess, may as well believe in Santa Claus.
Third, State governments would not be in such tough shape if it were not for the fact that the federal government consumes such a large portion of the taxpayer’s paycheck. When the federal government consumes so much of their income, there is a lot of pressure on State and local governments to compensate by reducing taxes at the State and local level. If Obama has his way, it’s only going to get worse.
Brilliant, that's ... well, your screen name! Well posted!
“Gratuitous” is a GREAT word to describe Mitt Romney’s pronouncements.
There is a scene right at the start of the pretty funny movie "Legally Blond" where the well-pedigreed, smarmy, kiss-ass, handsome, very self-assured, suave boyfriend shows up at the door for a date. It's a hilarious scene for any of us who remember the Mitts from our own adolescence and youth. Mitt's a cross between that character and Eddie Haskell, but there was something always likeable about Eddie. Mitt's an empty carton.
Mark Levin is no sycophant. TAdams8591, on the other hand ...
Virulent Romney lovers who lie to fellow FReepers by claiming falsely that their Hero was "endorsed/supported" by all manner of major conservative thinkers who in fact gave Romney faint, half-damning praise as the least loser of a piss-poor lot, are:
a. Stuck on the word "hatred" and ...
b. Stuck on Stupid. Romney is a big-government guy who fails to comprehend that government is not the solution, it's the problem.
Well, at least he’s not running. He did say that, right?
Nobody is making a full-court press pushing any of the other RINOs on FR the way Romney’s sycophantic rubes continually do. If folks on here continually posted thread after thread supporting Guiliani (or other RINOs) you would see the same result.
The fact is that Romney’s record shows he is a liberal. Liberals will always meet with bold resistance on FR, no matter who they are.
Bzzzzt. Wrong. The Real Deal is that Team Romney sabotaged
Gov. Palin and Sen. McCain (as Romney did over and over)
so that the other socialist friend of Romney could be elected.
Romney owes America and the GOP and apology.
Peeking Out From the McCain Wreckage: Mitt Romney
Someone's got to say it: IS MITT ROMNEY RESPONSIBLE FOR OBAMA'S VICTORY?
Vanity: Team Romney Sabotaged Palin and Continuing to Do So?
Romney Supporters Trashing Palin
Romney advisors sniping at Palin?
Novak: Fred Thompson drop-out rumors traced to Romney campaign
It is called substantial, unrebutted, criticism of Myth Romney's
liberal, shapeshifting, socialist, antivoting behavior delivered by scores of FReepers
who are not Romney-cultists.
FRee Republic Member Opinion
WINNER - Thompson 66.8% 1,658
LOSER --- Romney 12.7% 315
Post Election Rasmussen poll - GOP voters:
WINNER - Palin -- 64%
LOSER --- Huckabee -- 12%
LOSER --- Romney -- 11%
Bump that.
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