Things keep getting worse during this so-called “Summer of Recovery.” House Minority Leader Rep. John Boehner called on President Obama to fire his economic team because of it. As expected, the Democrats just brushed it off saying that the Republicans don’t have any ideas while asking if we want to go back to the way things were under President Bush. They ignore, however, that things were pretty good under President Bush, with many years of sub-5% unemployment. Things started tanking when the housing bubble, caused by Democrats, burst in 07 and 08. Unemployment was under 8% when President Bush left office, in fact, unemployment was only supposed to hit 8% max with the Stimulus that passed through Congress in early 09. Too bad we went over 10% with it and is stuck around 9.5% right now despite it. Why do we keep letting them run things when they obviously have been wrong and when they obviously don’t have a clue what they’re doing, especially since few in the administration have any experience in the business world?
As for Republicans not having any ideas, well, it’s just wrong. They do have ideas and those ideas involve the government getting the hell out of the way and allowing businesses to do what they need to do without excess regulations, taxes, and job killing bills like healthcare and financial reform. That doesn’t fly with Democrats because they like big government and anything that doesn’t involve it won’t be considered. If Republicans are able to again show that government is the problem and can only help be getting out of the way, it will undermine Democrats’ power for decades to come.
While I’m on the subject, Democrats keep pushing tax credits as a means of job creation and economic stimulus. They then criticize Republicans for not liking the tax breaks, despite Republicans being the party of lower taxes. There are significant differences here though. These tax credits require people to spend money to get them. Considering people and businesses don’t have much money to spend, how is this supposed to help? There are tax credits for hiring new workers, earlier this year there were tax credits for buying new homes, and last year we had “Cash for Clunkers.” All these required people to spend significant amounts of money to get them. Oh great, if I spend $200,000 on a new home, I can get an $8,000 tax credit, so I’m only $192,000 in debt now when I wasn’t in any debt before! Yea, that kind of stimulus makes sense! Let’s have more people go into debt to get a tax credit, that makes great economic sense. These types of credits only help those who already have money to spend, not the people that need jobs. They don’t stimulate anything. We need tax cuts, not tax credits. If you cut taxes, especially for businesses, they’ll have more money to be able to invest in new workers or whatever else they want to invest in. Either way, they’ll stimulate the economy more than any tax credits will.
If we want to get the economy going again we need to do three things:
- Repeal the healthcare bill
- Repeal the financial reform bill
- Keep the Bush tax rates for everyone, or cut them further
This will decrease the uncertainty for the future and I bet you’ll see the economy actually start recovering within new a few short months.