The Compass Points Toward Growth Policy
Last week saw the simultaneous ignition of three flammable DC-based policy conversations: (1) what to do with the so-called Bush tax cuts; aka the Democrats’ drive to commit class warfare regardless of the cost; (2) how to react to the president’s pesky debt commission, and (3) how to achieve “bi-partisan governance” and avoid the dreaded “gridlock” condition. Into this combustible mix, the Labor Department lobbed a lit match: a November jobs report full of disappointment and bad news for long-suffering American workers.
The congressional reaction was predictable. Panicked Democrats cried: “Quick, quick, tax the rich and then spend, spend, spend.” Deficit be damned. Republicans, with the bemused looks of those who have said the same thing for the 1000th time, asked: “Which economic doctrine, exactly, suggests that tax increases solves the jobs problem?” The administration took at look at 50,000 new private sector jobs and simply declared victory, with CEA Chairman Austan Goolsbee blithely championing 11 straight months of private sector job growth. By their standards, any sign of life in the private sector is an upset, but seriously?
Meanwhile, 11 members of the Bowles-Simpson commission supported a surprisingly sensible — not to be confused with perfect — plan to take on the debt. While it would have taken 14 votes to officially ratify the report, I am in the camp who finds 11 to be a more-than-half-full glass. The report made four important points:
- The problem is large and not amenable to solution by wishful thinking; a focus on “waste, fraud and abuse,” cutting foreign aid, or other budgetary gnats; or waving Harry Potter’s wand,
- The problem is spending, and everything in the federal budget has to be on the fiscal operating table,
- The health spending problem is enormous, and ObamaCare is a part of the problem, and
- The tax code is broken, so if you want more revenue, tax reform is the only route forward.
Disarray ensued. Progressives simply walked away from anything that did not endorse a full-throttle acceleration toward a eurozone-style meltdown. No surprise. Responsible Democrats embraced the report, as did Republicans who saw it as an imperfect step toward finally dealing with out-of-control spending. The politically aggressive conservatives held out for a consumption-oriented tax reform and greater attention to entitlement reform. And the Obama administration — who set up the commission as political cover for their feckless budgets — cowered in the face of a substantive report.
Lastly, the president held a “Slurpee Summit” on Tuesday, which was forgotten by Friday. (Well, at least it lasted longer than his G-20 successes.) Has effective bipartisan governance died in the cradle?
In short, by Friday, Washington was burning.
Which raises the question: if you are caught in a figurative forest fire, which way do you escape? Answer: take out the compass and point toward growth.
obama is a lost cause— his goal is ruination
the solutions to america’s woes will take decades if not centuries
the problem is so deeply rooted that unless reforms of epic proportions are adopted the same problems will sprout like weeds all over again
entitlements, keynesian economics, tax reform, etc.. all of these are symptoms of a cancer that is spreading like the wildfire in the article
until government agencies are totally scrapped
until schools properly instruct and teach
until citizens realize they aren’t entitled to sh–
the list goes on and on
There is no way Obama abandons Obamacare.
He sacrificed the Democrat party for it, for Pete’s sake.
It is the only thing he will have to show for these four years.
True, it is a disaster in the making. But someone else will need to stop it. If not, someone else will need to clean it up.
But that someone will not be Dear Leader.
I can’t see any of the left realizing the reality or acknowledging the actual results of their social experiments. Every time I see an hopeful statement like, “will they realize it,” I just remember a picture of the democrats from one of AlfonZo Rachels ZoNation series.
There are so many things that this administration could be doing to promote economic growth, but like all good Marxists, their first priority is to destroy the economy and cause needless suffering for the country.
Doug, aren’t you a conservative Keynesian yourself?You’ve been an aggregate demand side economist all your career, have you not? John McCain and yourself have never been able to articulate a growth agenda, so what credibility do you possess beyond acting like a classic balanced budget Republican?
It’s finally out: Obama agrees Bush was right on cutting taxes. He has also conceded from his broken promises to the left that Bush was also right on Guantanamo, on terrorists, on Afghanistan, on Iraq…we can go on and on and on. What a joke.
Sorry for the gloom and doom, but I think America is finished. We’ve become fat, lazy, apathetic, and stoopid. Factor in the non-stop onslaught of progressive politics and policies, how do we regain the ground already lost? One step forward and two steps back will not get us to the promised land.
I apologize, dear readers. But I suffer from many fatigues, including Muslim fatigue, Obama fatigue, debt/deficit fatigue, Progressive fatigue, “The View” fatigue, Seantor Ma’am fatigue, Pelosi botox fatigue, MSNBC fatigue, etc. I know they want us worn down and lethargic, but it’s a darn good strategy.
Apologies to all.
Barry has agreed to two year extension across-the-board. 5 years would have been better. Permanent would have been best. Left will surely go ape-shit. On balance, not bad.
http://libertyatstake.blogspot.com/
“Because the Only Good Progressive is a Failed Progressive”
I have not read the deficit commission report but from what I gather it is much too timid with regard to entitlement reform. I am retired and I saved enough to get by without my SS check so they can cut me off if they have the cojones to do it. But they don’t.
I am getting to point of agreeing with Glenn Beck that it is pointless to argue about politics anymore…we must prepare for the fiscal disaster that surely awaits us all.
The question here is: will the president’s commission raise taxes on work, savings and investment. The short answer is that it will. Let’s face it. We won’t get out of the present mess unless the economy grows. I think that Martin Feldstein’s idea of capping what is called tax expenditures like mortgage deductions is better and does not bolix up the way to growth.