The debt hawks are to economics as the creationists are to biology. Those, who do not understand monetary sovereignty, do not understand economics. Cutting the federal deficit is the most ignorant and damaging step the federal government could take. It ranks ahead of the Hawley-Smoot Tariff.
Here is some advice for the Republican party. Don’t be deceived by your successes in the past election. That was the result of voter panic. Your downward slide already has begun. Look at the polls. Look at the drop in money contributions.
If you follow this advice, you will reverse the coming slide, appeal to voters and possibly win the next election. If you don’t follow it, and continue on your current path, you will win — the race to the edge of the cliff.
What is the biggest problem facing America? The voters will tell you it’s jobs. What is the Republican focus? Obama and the budget. You Republicans have forgotten your strengths in your tunnel-vision rush to oppose everything Obama and the Democrats want.
The Republicans should stop trying to cut the deficit. Reducing the deficit will provide exactly zero jobs. Your strength is your support for, and your understanding of, business. And it is business that provides the jobs, not budget cuts.
Here’s what the Republicans should try to accomplish:
1. Eliminate FICA. FICA takes money from the pockets of businesses and consumers, and it’s regressive. It probably is the worst tax in America. It is dramatically negative for jobs.
2. Reduce business income taxes. Why punish the people who provide jobs if you want to increase jobs? Why reduce business’s ability to grow and to hire?
3. Provide more financial support for the states, so the states can fund those local projects that create jobs, for instance construction, education, police and fire. I suggest, as a start, giving each state $1,000 for each resident, no strings attached.
Not only would these initiatives provide a powerful stimulus for the American economy, but they would give Republicans good talking points with the voters. Republicans would be able to lay claim to the “job-building party.”
Sadly, the Republican “leadership” (Is there a Republican leadership?) wants to fire people, by cutting federal jobs and by cutting federal spending on dozens of job-creating initiatives. They simply don’t get it.
I am sad to see how far the Republican party — once my party of choice — has fallen. This is not the Reagan party any more. It’s the Tea Party now, and America is paying the price.
Rodger Malcolm Mitchell
No nation can tax itself into prosperity.