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.
Yup, that’s the M.O. of leftist Democrat agents deep within the GOP.
Very good point. I'm not even sure Romney understands the utter statism of his past record. He doesn't strike me as too bright in that regard.
Maybe you can post this picture another 2,000 or so times just to remind yourself and everyone else how obsessed you are with having photos of Romney at your fingertips.
I mean, we just haven’t seen it enough.
Don’t you have any other arguments except the health care plan (that was endorsed/supported by the Heritage Foundation) and a few dumb comments he made nearly 16 years ago.
By that standard, ALL Republicans should spark such hatred and derision.
Why don’t you post the 10,000 pictures of McCain playing kissie kissie legislation with liberal anti-American politicians FAR WORSE than anything Romney ever did?
Why is you hate focused solely on Romney, and not the other God-awful Republicans who ARE IN OFFICE RIGHT NOW!!!!!
Whether you like or hate the Massachusetts health care plan Romney and the Democratic legislature enacted, at least it is an effort involving the private sector ... NOT a single payer Hillary care boondoggle that Romney haters claim.
(He just had to get in that little kiss ...)
"Fiscal stimulus" as envisioned by this suck-up is part of the problem. He's a manager, for Pete's sake. Romney fails to grasp that government is the problem. He thinks it's part of the solution -- you just have to do it right, like:
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.
WHAT A PUTZ.
Because Juan is finished running for President. Slick Willard persists on keeping up with his farce. We’re gonna drive a stake through that Socialist vampire’s heart.
No he is not. You just make things up and assume no one knows better.
DITTO
FLASHBACK: Romney's lack of good judgment:
First, who else but Romney would install gay marriage and socialized medicine.
Second:
Third, it was illegal, but Romney is always "above the law (see fake badges, impersonating LEO in multiple states)"
Fourth, it was classic ROmney.
[One can only hope that Evangelicals and other bigots will get over themselves and vote for Mitt.]
And one can only hope that Mormon bigots would not vote 97% Mormon so we don’t get stuck with Willard next time around.
Slick Willard’s nomination in 2012 assures his good friend, the False Messiah of Kenya, a 2nd term. And if folks don’t believe that, just ask the other Black Socialist from Chicago he helped elect to the Governorship of Massachusetts.
But he's wrong. Your Hero has no clothes. He's naked -- he thinks government is the answer. He's arrogant enough to think that he can direct -- manage -- government for we taxpayers better as a businessman who works in and for government. Government is part of the problem.
Romney is part of the problem.
You're easily impressed.
Hey, and he's for energy independence, too! Brilliant! Too bad he thinks getting there involves "investing" in alternative energy sources. The putz.
Deval Patrick is planning to dismantle the Massachusetts Turnpike Authority and cut all tolls west of Route 128 except at two state border....
Deval Patrick is delaying salary increases for 30000 human services workers. The Patrick administration is refusing to release $23 million in this year’s ...
Mass. Gov. Deval Patrick to cut $1 billion from budget in wake of financial turmoil....
Mitt did nothing to push this. Zip. Zero. Nada.
But, now, like conservatism, he's all gung-ho for energy.
Just not when he had the chance as Governor.
If Mitt was a Protestant, he'd have a hard time. He's too stiff, uncomfortable, odd in an way.
Blacks wouldn't be drawn to him, nor Jews, nor blue collar ethnics.
Now throw in the Mormon card.
Just not happening on a national scale for him. He can write all the NR papers his writers can write. Eight people read NR, WSJ.(just kidding, but that's the popular effect)
These actions by Deval have been called the Romney plan, because they were the actions Romney called for in his first year of Governorship but were denied by the legislature.
“Deval Patrick is planning to dismantle the Massachusetts Turnpike Authority and cut all tolls west of Route 128 except at two state border....
Deval Patrick is delaying salary increases for 30000 human services workers. The Patrick administration is refusing to release $23 million in this year’s ...
Mass. Gov. Deval Patrick to cut $1 billion from budget in wake of financial turmoil....”
Deval is doing it. No one can say he's a mean old Republican. Which is a very effective tactic against wimpy RINOs.
Once was sufficient to get your panties in a knot, while demonstrating how dishonest your claim was that Romney stands up to leftists. He sits down laughing with them as he spits on conservatives.
Why don’t you post the 10,000 pictures of McCain playing kissie kissie legislation with liberal anti-American politicians
Okay.
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