The American people did not give power to congressional Republicans; they took it away from congressional Democrats. Republicans now have an opportunity to prove that they deserve majority status — that they can operate not just as an opposition party, but as responsible leaders who are willing to make hard choices and solve problems.
The goals of an ideal economic-growth agenda are simple and well known: a large and thriving private sector and a small government; reduced government spending, which means lower taxes (or at least not higher ones) and smaller deficits; open trade and investment; taxes and regulations that don’t distort decisions, discourage capital formation or work, or provide rents to the politically powerful; deep and flexible labor markets; a reformed financial sector that channels savings to where they can do the most good; a society in which education and innovation flourish, and the most talented people in the world want to become Americans; a stable, low-regulation legal environment, in which monetary policy is sound and business decisions issue from customers and competitors rather than regulators and judges.
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Practical policymaking is about moving incrementally in the right direction rather than trying to achieve the ideal all at once. It’s easy for elected officials to distract themselves with simplistic partisan fights that are politically advantageous but either make little headway toward the goal or distract from more important underlying problems. Progress on a practical growth agenda requires recognizing the limits of policy and taking political risks.
Here, then, are ten practical tips for elected Republican officials, who are torn between trying to govern as a majority party and trying to oppose President Obama’s agenda as a minority party.
One.Prioritize medium-term problems caused by the government rather than trying to push businesses to expand more rapidly. The economic-deleveraging process is painful, slow, and necessary. Tools to mitigate the pain or accelerate the recovery have failed. So, refocus: Stop trying to mess with the economy’s natural process of rebalancing. You’re only making it worse with unintended consequences. Don’t restore the homebuyer tax credit or try to put a floor on housing prices. Instead of stimulating particular types of investment, or encouraging businesses to hire, or searching for chimerical shovel-ready projects, spend your time fixing the medium-term problems caused by flawed policies. It takes political courage to admit that the short-term economic-adjustment process will be slow and painful, but additional policy distortions will only make things worse.
The government needs to worry less about the private sector and get its own house in order. There is plenty of work to be done: cutting government spending; preventing tax increases; replacing the failed Fannie Mae and Freddie Mac with a competitive private market; enacting free-trade agreements with Colombia, Panama, and South Korea; and undoing the worst regulatory excesses of the past two years.
Two.Set the right goal: creating the conditions for growth rather than trying to create growth. Policymakers need to get the policies right and let business leaders decide how to run their firms. Corporate leaders are sitting on unprecedented piles of cash, waiting to see what Washington will foul up next. Take Washington out of their decision-making by creating a stable, predictable, low-cost business environment. They will then decide how best to hire, invest, and expand. Your job as an elected official is not to create economic growth or jobs, it is to create the conditions under which the private sector creates growth and jobs. Stick to your lane and let business leaders stick to theirs.
Social Security is not an "entitlement"! The Federal Government took money out of everyones checks every week for our entire working life. The Congress STOLE our money, so there is no principle or interest. It all just comes from new taxes, a classic Ponzi scheme.
If you want to truly stimulate the economy and create jobs try this:
Pump a few billion into Social Secutrity and privatize it. The funds need to be managed by the individual much like an IRA Mutual Fund. It needs to be invested in American businesses to stimulate growth and be managed by professionals who are awarded for performance.
Lower the retirement age back to 62 as it was when most of us signed on. The retiring boomers will leave a whole lot of positions open to reduce unemployment.
Another suggestion . . . It is time to create a new frontier -- in space.
The moon's surface is made of titanium, iron and manganese --- with deposits of water, platinum, etc. The platinum alone could allow us to use hydrogen for energy.
The asteroid belt contains immense resources far beyond anything available on the Earth.
It is time to move aggressively into space -- colonize, industrialize and do far more than explore.
We need policies that move us forward -- clear property rights, improved access to space and exploitation of technological breakthroughs.
We need to look back into history and see what worked for us for almost 200 yrs. Free trade is not free. It cost the american worker jobs and money to put back into the economy. Free trade works only for the top. If we don't protect the jobs here we will have none to protect. Before Regan the US used tarrifs to help keep jobs here. When we got away from what works our jobs left the country. We have seen what deregulation does to our economy. Large companies only want what is good for them and not the country. Large companies are setting on a huge amount of money and they don't want to invest in America they want to see how they are going to keep the edge.
Social Security would be in pretty good shape had Regan not allowed the increase to go the general fund. We the American people put money in the bank to finance the baby boomers. They increased the amount taken out of our checks by almost double and then cut taxes. It hasn't worked out too well. Right now the fed owes SS almost 3trillion dollars. Because of mis management we can add that to the Debt. The American worker made America great not the American banker.Its time to put the power in the workers hands and out of the bankers. Trickle down economics has not worked the proof is in the economy and out of control insurance companies. All the things in this article are the things that we done in the last few years and Wall Street now has more of the economy than the entire rest of the 98% of Americans. Its time to wake up and get back to what works. Reaganomics has not worked. Go back 40 years and see where the Government grew and where our debt started to get out of control, It will show that when we got away from protecting the American worker our debt grew and people started to see the American Dream started to slip away.
How about "Eleven: Don't pass any bill in the House that is not authorized by the enumerated powers in the Constitution. This will reduce 98% of what the federal government does"
Beyond the no-brainer recommendations on taxes, spending, and keeping government out of business, many of these "practical tips" seem impractical, and frankly, naive.
#9--"the President cannot block the EPA from fouling up the economy without something to show for it".
But the President fundamentally--at his core--WANTS the EPA to take over (foul up) the economy. He isn't looking for an out. Further, if he was, more money for R&D in exchange for backing off of EPA regs is not a deal that POTUS would take. And last, we don't even need POTUS's help to block EPA regs--plenty of Congressional Democrats with their eye on 2012 will be more than happy to show their independence and help block the regs (Tester, McCaskill, Manchin, Webb, Conrad, etc.etc.).
#8 - "offer to help the president fight the teachers' unions". Uhhh, what?!?! Again, the President--at his core--has ZERO interest in fighting the teachers unions.
#7 - "offer to help the President expand free trade and open investment. Rebuild the center-right free-trade coalition." The president missed a free trade layup in Korea, indicating that his "support" for free trade is insincere lip service.
Trust but verify. We should only help him if he shows a willingness to accept and embrace our help. Otherwise we are setting ourselves up to get caught in W-like trap "deals" that only benefit the opposition.