Obama Making Things Easy For The Next Reaganite.
Posted in the Columbus Forum
#1 Jan 16, 2013
Obama is Making Things Easy for the Next Reaganite
Remember when people were saying that the old Republican ideas, the venerable supply-side reforms that first made their mark in the Ronald Reagan era of the 1980s, were no longer relevant in terms of getting us out of our rut today, on account of their already having been made policy? It was only yesterday that we heard all this—in the campaign of 2012.
Cut taxes? Done plenty over the last thirty years by Reagan, even Bill Clinton, and then George W. Bush. Roll back regulation? Done again (and we apparently saw the fruits in the financial crisis). Sound money? Interest rates are undetectable these days, a tiny fraction of those Jimmy Carter conducted over to Reagan in the massive dollar crisis of 1980-81. Free up trade? We now live in a bewildering era of globalization!
These four things—low taxes, stable money, deregulation, and free trade—are known as the “four pillars of Reaganomics,” one of the classical statements of which the great supply-sider Arthur B. Laffer set down here.
All so quaint, aren’t they, applicable as they may have been to the challenges of a generation ago.
But wait…now in 2013, taxes have gone up, and President Obama insists that more increases must come; regulation, in the form of Dodd-Frank, the Federal Reserve’s new plenary powers, Obamacare, and EPA mandates, has taken a giant leap; dollar substitutes like gold have blown through the roof; and big dogs in international trade, Japan and the Eurozone, are contemplating such things as competitive devaluations and the possibility of a breakup into autarky.
So the four pillars of Reaganomics are not so irrelevant after all, in that there is plenty of “room” for them to be applied with gusto right now, and certainly once President Obama really gets going during his 2013-2017 stint.
For what we are experiencing, as the economy digests the big Obama boondoggles of his first term and the big statist plans for his second, is the renaissance of the relevance of the four pillars of Reaganomics. No longer will it be necessary for some political aspirant to put a twist on the old supply-side ideas, to go for some clever repackaging and “updating,” to think outside of the box á la the blessed authors of Grand New Party from a few years ago. The old warhorse ideas will be precisely up to the task at hand.
Could you imagine what would happen if we cut taxes, reined in regulation, stabilized the dollar, and recommitted to world trade? Which is to say: what if the private economy were freed of impediments? The outsized growth that we last saw in the 1980s and the 1990s would come again today. Out of the trough of the recession in the 1980s, the economy grew 17% in three years, about triple the rate of the Obama recovery from the Great Recession. And after that momentous start in the mid-1980s, there was another fifteen years of real growth at 3-4%. This is the minimum we should expect from a program based on the four pillars of Reaganomics given our dilapidated state today. Maybe we could grow at 4-5% for the long term, since our current GDP denominator is so dismal, so low.
#2 Jan 16, 2013
Fifteen years at 4% growth would add so much wealth and so many resources to the economy that virtually all the problems which have this country in the doldrums right now would fade from the scene. It would be impossible to keep running budget deficits (as the 1990s proved), because of the rush into the private sector. The big entitlements, Social Security and Medicare, would become both less relevant (on account of everyone’s private prosperity) and more solvent (on account of a government that can only get rich in such a context).
The problem facing this country, in this sixth year since the beginning of the Great Recession, is substandard growth. And growth is exactly what the four pillars of Reaganomics were identified to spur. The argument that there is no “room” to cut taxes or regulation or what have you simply makes no sense this far along into Obama.
Reaganites were always a little squeamish about suggesting what obviously should be the fifth pillar of their program—permanent reductions in government spending. They had to be, since spending swelled to nearly 24% of GDP as the Reagan plan got going in the context of Tip O’Neill’s Congress. Let this then be the “new idea” of the twenty-first century: there are five pillars of Reaganomics, the last one remorselessly shrinking public expenditures in the face of a booming real sector.
Cut spending, taxes, and regulation, get the dollar stable (one of the effects of which is to fix exchange rates and thus facilitate trade), and show economic leadership to the world? We could seriously be talking about 5% growth for the long term after a mammoth start, with all of the intractable problems of the Obama era bygone, the butt of jokes.
The best revenge against the current incompetence will be the return to growth. President Obama is setting the table for the next Reagan Revolution, if only the Gipper’s heirs are clear-eyed enough to see it.
#4 Jan 17, 2013
Grover Norquist Anti-Tax Crusade is Slowly Ending
Published: Tue November 20th, 2012
By: Andrew Riggio
Category: Opinion and Editorial
COMMENTARY | When it comes to national politics, it's often tempting to see only the faces in front of the camera. We forget there are people moving behind the scenes and influencing national policy. In many cases it is the invisible puppeteers who are most dangerous to the nation. It is in this category we find Grover Norquist, the most dangerous man you've never seen.
Until 2012 very little attention was given to Norquist. The man worked in the shadows for a very specific goal: the eternal reduction of taxes on the rich. The first time most people heard of him was through his primary tool, a pledge not to raise taxes, ever, under any circumstances or for any reason.
Many Democrats, and almost every Republican, have signed this pledge. A ThinkProgress report says that of the politicians seeking election this year 279 of the incumbents and 286 challengers had signed the pledge.
It's been around since 1986, according to Reuters, and like many items of bad public policy influence it's deceptively named. Norquist called it the "taxpayer protection pledge" but the taxpayers it protects are primarily large corporations and ultra-rich individuals and families.
This document is a pledge to never raise taxes, even if doing so is in the public interest. It's been a political lever used against politicians for decades, often applied as a sort of acid test by which a Republican hopeful can prove to the party that he or she is really, truly ideologically pure. Candidates refusing to sign it had to worry that the Republican Party would not back them.
This year, though, President Barack Obama's campaign did something brilliant: It grabbed Norquist and his pledge by the proverbial scruff of the neck and dragged him and his ideas into the public eye. He made a point of showing America that Norquist and his pledge were a noose around the neck of the nation.
We are at a turning point in American politics. The rich have become so obscenely wealthy and the rest of us are suffering so greatly that Americans resent the tax-advantaged rich and their refusal to bear their fair share of the load.
Grover Norquist has been the evil wizard behind the curtain for decades, but his curtain has been stripped away.
Even Ole Ronnie raised taxes on the wealthy!
A 1985 speech by President Reagan calling for fair taxation of millionaires had only 800 views before Georgetown University law grad John Craig located the video posted by the Reagan Foundation.
Craig was interning for the liberal group Center for American Progress when he found the video, the Washington Post reports. CAP posted the Reagan speech and compared it to a similar speech by President Obama, garnering more than 200,000 views as of Wednesday afternoon.
In the speech to high school students, Reagan vowed to “close the unproductive tax loopholes that have allowed some of the truly wealthy to avoid paying their fair share.” The loopholes “sometimes made it possible for millionaires to pay nothing,” Reagan said,“while a bus driver was paying 10 percent of his salary, and that’s crazy. It’s time we stop
#5 Jan 18, 2013
Keep dreaming Wise American...Keep dreaming.
Oh, but don't hold your breath waiting on the superdooper rich to bail all out.
Get ready for the screwing of your life.
Bend WAY over!!!
#6 Jan 20, 2013
Obama sounds like ol Ronnie when he talks about taxing the rich their fair share, huh! I guess Ronnie was a socialist too, right? What's good for the goose....
Since: Dec 11
#7 Jan 26, 2013
The biggest delusion you marxist foist on the societies you suck on is the idea that the "rich" can be "soaked" enough to assuage your sense of rettibution and actually pay for entitlements.
The "workers", always pay for the operation. Rich folk just find creative ways to hide thier money. Corporations are just tax collectors. If taxed they simply pass the cost along in thier products until they can't. Then they offshore. Tax disencentivises rich and poor. The taxed millionaire decides to buy stocks instead of build a business and employ me.
Marxist and Keynsians are ignorant of economics and consistant in thier sad effects on economies.
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