Wednesday, January 28, 2009

Republican Plan Grows More Jobs, Spends Less Money and Has A More Immediate "Jolt", Just Ask Obama Economic Advisor Dr. Romer!

Wait a minute! You mean tax cuts will grow the economy more than spending? Did Obama and Pelosi think that no one else can do math? Using the same methodology as Chair of the (Obama) White House Council of Economic Advisers, Dr. Christina Romer, the republican alternative to the Great American Pork Project will create MORE JOBS, HAVE A GREATER, FASTER "JOLT" TO THE ECONOMY AND WILL NOT MORTGAGE OUR FUTURE!

Washington, Jan 28 - As the House prepares to vote on the congressional Democrats’ trillion dollar spending package, more attention than ever is being paid to the bill’s massive slate of slow-moving government spending.

The non-partisan Congressional Budget Office yesterday confirmed that the House Democrats’ massive spending plan would cost more than $1.1 trillion, by far the largest spending package in American history, once the federal government’s interest costs related to the legislation – $347 billion between 2009 and 2019 – are taken into account.

And editorial pages across the country – from the Wall Street Journal to the Detroit News to the Las Vegas Review-Journal – have taken aim this morning at this big government spending spree.

House Republicans are offering a better solution: an economic recovery plan that will create 6.2 million new American jobs over the next two years, according to a methodology used by President Obama’s own nominee as Chair of the White House Council of Economic Advisors, Dr. Christina Romer. The Camp-Cantor alternative – crafted by House Ways & Means Committee ranking member Dave Camp (R-MI), Republican Whip Eric Cantor (R-VA), and the members of the House GOP Economic Recovery Working Group – will provide fast-acting tax relief to help the economy create jobs, as opposed to the congressional Democrats’ bill, which is loaded with government spending on programs and projects.

Here’s a quick summary of the House GOP’s Economic Recovery alternative:

Immediate Tax Relief for Working Families:

Help for America’s Small Businesses

Assistance for the Unemployed

Extension of Unemployment Insurance Benefits

Stabilizing Home Values

Expanded Net Operating Losses (NOLs):

Bonus Depreciation / Small Business Expensing

Repeal of Three Percent Withholding Requirement for Government Contractors

Health Insurance Deduction

No Tax Increases to Pay for Spending


But why would we want to do any of those things when we can spend!

More dissent from over 200 Top Economics

From The Cato Institute:

"There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy."

With all due respect Mr. President, that is not true.

Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we do not believe that more government spending is a way to improve economic performance.

More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s.

More government spending did not solve Japan's "lost decade" in the 1990s.

As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today.

To improve the economy, policy makers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.

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