Hoover economists helping Schwarzenegger

AP | 8/30/03 | RACHEL KONRAD

[kattracks]

PALO ALTO, Calif. (AP) — Arnold Schwarzenegger has been vague about his economic plans for California, but clues may come from his advisers, many of whom hail from a conservative think tank whose members helped develop President Bush's economic plan.

Hoover Institution economists are advising the Republican actor on taxes, unemployment and the economy in his race to replace Gov. Gray Davis on Oct. 7. They also helped Bush develop his economic plans, including two major income tax cuts.

Founded in 1919 by Republican Herbert Hoover, Stanford University's Hoover Institution on War, Revolution and Peace espouses a free-market approach in which private enterprise trumps government intervention.

Nobel Prize-winning economist Milton Friedman and other Hoover researchers helped popularize the "supply side" economic theories that dominated President Reagan's economic policies.

The cornerstone of the philosophy is that tax cuts — regardless of whether they accompany spending cuts — let executives and entrepreneurs spend their capital on new jobs, research and other investments that bolster the economy.

Hoover scholars advising Schwarzenegger include Republican former Gov. Pete Wilson; Michael Boskin, the elder President Bush's economic adviser; George Shultz, a former secretary of the treasury and state; and John Cogan, a former assistant secretary at the U.S. Department of Labor.

Democratic Lt. Gov. Cruz Bustamante, who favors a tobacco tax hike, a crackdown on small business tax shelters and higher taxes on the rich, leads most polls of those planning to vote in the special recall election. Schwarzenegger, 56, runs second and is the top Republican candidate.

Schwarzenegger has been more explicit about his stands on social issues than his economic plans. His general suggestions that budget cuts would fix California's multibillion-dollar budget deficit are accompanied by a few details, among them his desire for a constitutional limit on annual spending increases, a repeal of the car tax and a renegotiating of public debt.

The lack of further details has made his reliance on Hoover Institution scholars, with their emphasis on privatization and lower taxation, intriguing to liberal economists and gubernatorial rivals.

"Schwarzenegger is right out of the Bush economic playbook, and that's the last thing the state needs," said Independent candidate Arianna Huffington. "Millions of people have lost their 401(k)s and their savings. Real people pay the price for a lack of oversight and regulation."

The institute's namesake, who led U.S. efforts to help rebuild Europe after World War I, lost overwhelmingly in the 1932 presidential election to Democrat Franklin D. Roosevelt amid public dissatisfaction with the government's inability to revive the economy during the Great Depression.

Many Hoover researchers on Stanford's campus insist that a small-government approach — and deregulation of the energy industry and income tax cuts — will fix California's deficit and create jobs. Although the organization never endorses candidates, its leaders are enthusiastic about Schwarzenegger.

"The current crowd in Sacramento has driven the state's finances into a ditch by systematically making foolish decisions on electricity, spending, debt and workers' compensation," said Boskin, a Hoover senior fellow. "One of the many attractive features about Arnold Schwarzenegger is his ability to reach out to talented people from around the state."

Hoover Institution director John Raisian emphasized that Hoover economists are just one element in Schwarzenegger's Economic Recovery Council. The two dozen advisers include Warren Buffett, a political moderate and billionaire investor, and Jerrold Perenchio, chairman and CEO of Univision Communications and a past donor to Davis and Bustamante.

Buffett bucked the tax-cutting theorists when he suggested that California's property taxes are too low — a comment that prompted Schwarzenegger to jokingly demand 500 sit-ups if Buffett brought up the issue again. Wilson, though a Hoover scholar, raised taxes as governor.

The institution's critics say Schwarzenegger would be foolish to apply supply-side theories to the state level. The federal government can cut spending on education or health care on the expectation that states will pick up the tab, but California cannot realistically pass responsibility for services to cash-strapped counties or towns, said Chuck Collins of Boston-based United for a Fair Economy.

"It's a shrink, shift and shaft policy," said Collins, whose group focuses on income disparity. "Services would shrink, state book taxes would shift to local pocketbooks, and the shaft is a deteriorated quality of life."

[goldstategop]

And where have the liberal wackos led California? To the verge of bankruptcy and a recall election. At least Arnold is getting sound advice from a good source; that's more that can be said for the likes of Large Breasts, the Greek Harpy, and the Green Wunderkid whose solution to California's ills is socialism. The only thing that hasn't been tried yet in the Golden State is conservatism.

[Tamzee]

Thanks for the terrific article :-)

Milton Friedman personally endorsed Arnold the other day and he is said to be the credit behind Reagan and Thatcher economic policy.
http://www.joinarnold.com/images/imagecenter/thumbs/ic008small.jpg

[backhoe]

katt, regarding this little slander?

said Chuck Collins of Boston-based United for a Fair Economy. "It's a shrink, shift and shaft policy," said Collins, whose group focuses on income disparity. "Services would shrink, state book taxes would shift to local pocketbooks, and the shaft is a deteriorated quality of life."

It's funny how that "quality of life" always depends on the government extorting money from one group of people to pay for the problems of another group... here's what a web search reveals about this Collins character's little group:

United for a Fair Economy
United for a Fair Economy is a national, independent, nonpartisan organization
that puts a spotlight on the dangers of growing income, wage and wealth ...
Description: US national, independent, nonpartisan organization concerned about the growing income, wage and...
Category: Science > Social Sciences > ... > Consumption and Wealth > Inequality
www.ufenet.org/ - 59k - Cached - Similar pages

A World Connected - United for a Fair Economy
Websites and Organizations. United for a Fair Economy. United for a Fair Economy
is a Boston group which concentrates on economic education for ordinary people. ...
www.aworldconnected.org/article.php/332.html - 34k - Cached - Similar pages

United for a Fair Economy
... FOR IMMEDIATE RELEASE AUGUST 26, 2003 12:01 PM, CONTACT: United for
a Fair Economy Betsy Leondar-Wright (617) 423-2148 x13. CEOs profit ...
www.commondreams.org/news2003/0826-01.htm - 15k - Cached - Similar pages

United for a Fair Economy
... FOR IMMEDIATE RELEASE JANUARY 31, 2000 7:41 PM, CONTACT: United for
a Fair Economy Chris Hartman, 617-423-2148, ext. 17 (on 2/1), or ...
www.commondreams.org/news2000/0131-10.htm - 13k - Cached - Similar pages
[ More results from www.commondreams.org ]

United for a Fair Economy
United for a Fair Economy (UFE). Web http://www.ufenet.org/ A national,
independent, nonpartisan organization that puts a spotlight ...
www.bapd.org/gun-my-1.html - 3k - Cached - Similar pages

Catalogue for Philanthropy: United for a Fair Economy
... 2148 info@faireconomy.org www.FairEconomy.org. United for a Fair
Economy, Give Now The first beneficiaries of expanding economies ...
www.catalogueforphilanthropy.org/ cfp/2002/united_fair_629.htm - 10k - Cached - Similar pages

CommunityRoom.net - United for a Fair Economy - Mission
... United for a Fair Economy Mission Background/History Info Center. Make
a Donation to this Nonprofit Please decide to which fund you ...
www.communityroom.net/NPOMission.asp?113 - 13k - Cached - Similar pages

---

See my tagline- my Dad nailed it nearly 50 years ago...

[Tamzee]

FYI

[lainde]

bttt

[RightOnline]

On a recent business trip to the Left Coast, I sat next to a gentleman from the Hoover Institution. Just a terrific older gentleman; foreign policy expert....specialty: rogue nations. Talk about a fascinating conversation..........

[Russell Scott]

Arnold is like a beautiful automobile with nothing under hood.

As Kobe and Arnold like to say "Image is everything".

[kattracks]

Arnold is like a beautiful automobile with nothing under hood.

Hmmm...I guess all that $$$ he made in business (before he became a "star") was just a fluke.

[AmericaUnited]

"Schwarzenegger is right out of the Bush economic playbook, and that's the last thing the state needs," said Independent candidate Arianna Huffington.

Yup... let's listen to an airhead with two brain cells, one of which is retarded.

[Beelzebubba]

The article title cleverly associates Arnold with the failed economy of President Hoover.

A less biased title (if there is a true requirement for brevity that prevents "Hoover Institution economists helping Schwarzenegger")
would be "Think-tank economists helping Schwarzenegger" or even "Conservative economists helping Schwarzenegger."

If they wanted to show some pro-Arnold bias, it might be "Stanford think-tank economists supporting Schwarzenegger."

[Kevin Curry]

Buffett bucked the tax-cutting theorists when he suggested that California's property taxes are too low — a comment that prompted Schwarzenegger to jokingly demand 500 sit-ups if Buffett brought up the issue again.

Please note: Arnold didn't castigate Buffet for what he said about Proposition 13, but for bringing it up at all. The "timing" isn't right. The rubes haven't voted Schwarzenegger in yet.

Schwarzepubbies fell all over themselves in their rush to interpret this statement as meaning that Arnold is firmly anti-tax. They conveniently ignored his sly follow-on assurance that he would raise taxes only in an "emergency."

If California isn't in a state of fiscal emergency now, there is no such thing as a fiscal emergency.

Clinton himself couldn't have delivered such a deception with greater cunning.

[Kevin Curry]

The article title cleverly associates Arnold with the failed economy of President Hoover.

Read on. The article proper associates Arnold with the failed policies of Republican social conservative Pete Wilson.

Social liberalism or low taxes. Choose one or the other. You cannot have both.

[Kevin Curry]

Correction: The article proper associates Arnold with the failed policies of Republican social liberal Pete Wilson.

[68 grunt]

Ahhh, Ronald Maximus? Or is it (R)inold Reagan?

[68 grunt]

Another sign of a great leader, put together the best team you can, then let them do their job.

Go Arnie

[b9]

>>> Bustamante... leads most polls <<<

Huh?
I thought Schwarzenegger was ahead.

[Chancellor Palpatine]

Buncha no good RINOs over there at the Hoover Institute, showing their true colors.

[habs4ever]

Friedman was never a supply sider, as that title rightly belongs to Robert Mundell and those who read and followed his work.Miltie is a dyed in the wool monetarist, and while they can co-exits, don't look for growth from his camp.

[Walkin Man]

Please note: Arnold didn't castigate Buffet for what he said about Proposition 13, but for bringing it up at all. The "timing" isn't right. The rubes haven't voted Schwarzenegger in yet.

You got that right, Kevin! Arnie and his demoRat advisors are still reeling in the Repub suckers like the snake-oil salesmen they are!

[habs4ever]

Hey, did you get word about our militia cell meeting at Camp T this weekend? Be there and bring the latest Cabela's catalogue ;-)It's a WHINO hunt ;-)

[Chancellor Palpatine]

I can see all the Elmer Fudd like "true conservatives" running about.

[tpaine]

Social liberty and low taxes.
Choose Arnie. -- You can have both.

[GatekeeperBookman]

Thanks for speaking the truth. I really wish it were otherwise.

This deal equals Perot-but we aint lookin' at a goofy, eccentric, biz guy who was paid $750 million by GM board to just leave! We got a living breathing sex god, flush from the movies, who has the women snowed & the slobbering masses will vote for him. Some will vote for him out their blind fear of Bustamonte! Some are also seduced by his 'advisors'-some quite strange indeed! They think he can be educated into being a conservative-while he is married to a Kennedy female!! This is an awful joke on us all-it will have consequences all over the nation.

Hope they like dirty stinking baggage-his reeks like week old garbage.

[tpaine]

Cabelas doesn't sell to Whino fat guys.
Only Arnie types need apply.

[VOA]

At least Arnold is getting sound advice from a good source...

Sounds like he may be reading the story of the economic revitalization of Chile
by "The Chicago Boys".
California needs the sort of discipline and help that Chile got.

http://www-hoover.stanford.edu/publications/digest/974/bckr3.html

[Hillary's Lovely Legs]

Those dumb Nobel Prize Winning Economists don't know nuthin'.

But I bet they would know enough to fill out their papers correctly to get into the Voter's Guide.

But then again, they aren't career politicians.

[68 grunt]

ELMER FUDD

Elmers! Elmer Gantry, Elmer Fudd - delightful. wabbity wrinos

[Chancellor Palpatine]

Shame on you for mocking the superior level of knowledge and legal compliance form someone who knows the ropes after being a 20 year legislator.

[68 grunt]

... are still reeling in the Repub suckers like the snake-oil salesmen they are!

You know what else? He's reeling in demon's, too. Many, many of them. Just like Ronald Reagan. Heeheehee

[68 grunt]

Those dumb Nobel Prize Winning Economists don't know nuthin'.

Uh-huh, really, what do they know?

Go Arnie

[Hillary's Lovely Legs]

[GatekeeperBookman]

Thanks for the link-watched a particularly good episode on Commie-Lib TV last week. Good stuff-wonder if PBS has ever learned what they broadcast?

Maybe someone would show Arnold the Bible & the Bill of Rights? Is he open to such radical ideas?? Would he find his moral compass?? Would the mindless, Incredible Hulk become a Disciple of something higher?? Would anyone notice??

[habs4ever]

Sure they do, they have an online catalogue and store.They also sell to those in state institutions, who get to use a computer only between bedpan changings...which applies to you.

[habs4ever]

Would you even trust Tommy to write up an auto loan as the assistant branch manager for some local finance company,let alone act like he knows how to operate the budget for the state of California? Vote for the guy with all that experience, the one that acts like he's a rube...Go Tommy!

Even the turnips threw him off the truck, they couldn't stand him!

[Hillary's Lovely Legs]

Last year, harvesters load turnips on the back of a truck at the first turnip gleaning event at Marker-Miller Orchard. This year’s crop is ready for the picking. (Courtesy Society of St. Andrew)

[VOA]

Maybe someone would show Arnold the Bible & the Bill of Rights? Is he open to such
radical ideas?? Would he find his moral compass?? Would the mindless,
Incredible Hulk become a Disciple of something higher?? Would anyone notice??

As much as a I respect McClintock, Simon, and Uberroth (sp)?, California has gone
so far to the left (and financial insanity), Ahnold is about the best chance the place
has to push the ship of state back to the right without there being armed
insurrection in the streets.

Ahnold is imperfect in many ways, but as the numbers shake out now, the only
real contender is Bustamante...and he wants to nationalize the oil industry
then give California back to Mexico.

As for Ahnold, I don't see him bending the knee to the carpenter from Galilee anytime soon.
But he beats the alternative of Bustamante.

Just my opinion as an Okie Republican stuck in West Los Angeles...

[GatekeeperBookman]

You are the man on the scene-hope you make the best choice. You are brave to stay & endure what is happening there.
Hope a lot of things...but Hitlary shows us what dark posibilities may exist.

[tpaine]

Now now, habs. Just because you like the fat boy, there's no need to get snippy.

[PhilDragoo]

John T. Flynn in The Roosevelt Myth, 1948, describes how Roosevelt ignored Hoover's advice in order to prolong the conditions of the Depression--so that FDR could establish a labyrinth of socialist bureaucracy.

So it is with Shaft Bustamante ("Everything for me; the shaft for everyone else.").

The article is inaccurate in its description of Oh Arianna as "independent"--actually, it is Oh Arianna's brain cell which warrants the term.

As for Unicorns for a Fairy Economy, how much does it really cost to teach the kids condoms and All Evil Is Traceable To Dead White Men?

Arnold immigrated thirty-five years ago not knowing the language and succeeded at everything he's undertaken.

Now he'll be the undertaker for Gray and Gray's Mini-Me.

Alright, drop the special interests,
and step away from Sacramento.

[Carthago delenda est]

Nobel Prize-winning economist Milton Friedman and other Hoover researchers helped popularize the "supply side" economic theories that dominated President Reagan's economic policies.

The economic ignorance of that sentence is astonishing.