Here Are the Key Steps for the GOP — If It Does Take Control of Congress
They end with a Super Bowl for entrepreneurship to give the heroes of American economic success the recognition and acclaim they deserve.
Throughout its history, the American economy has seen some rough patches, usually self-inflicted by incompetent fiscal management. For instance, where did FDR get the idea that raising taxes was the right prescription for a recession? Perhaps from the medieval practice of bleeding the infirm to reinvigorate them?
The Biden economy, despite Joe’s best efforts, isn’t quite that bad, yet, but it will require a serious intervention to restore economic well being. So, stipulating that the polls are right, how should a victorious GOP go about it?
A good start would be to view every initiative through the template of its impact on economic growth. A list of all the ills — like the deficit — that economic growth addresses is too long for this article and, frankly, shouldn’t be necessary for a literate audience.
So which are the key components of growth that have been victimized by President Biden? Energy, cost of capital, labor, and attitude will do for starters.
Mr. Biden’s and the Democrats’ harebrained attack on American energy has produced a shortage, and attendant higher prices, of an ingredient that underlies so much economic activity. The GOP should prioritize restoration of America’s energy preeminence.
Undo every one of Mr. Biden’s regulatory roadblocks on energy production. Streamline permitting of pipelines and other energy infrastructure. Root out the environmental, social, and governmental nonsense that has shamed banks into redlining fossil fuel investments.
ESG virtue signaling might benefit some of Hunter Biden’s China energy investments but leaves America out in the cold, as it were. As for capital, make it cheaper. One could start by lowering taxes, particularly the capital gains tax.
All economic growth depends on investment, and lowering the cost, synonymous with increasing the return, of investment capital is an essential start. The history of the impact of lower taxes on economic growth should be obvious to all objective thinkers.
The Reagan tax cuts were followed by decades of growth; the Trump corporate tax cut led to a booming economy immediately prior to Covid. And the opposite approach, raising taxes, proves the case: as when FDR turned a recession into a depression with moronic tax policies.
As for labor, let’s stop paying people NOT to work. Phil Gramm’s new book, “The Myth of American Inequality,” points out that the bottom quintile income-wise, lives as well as the next two quintiles thanks to transfer payments.
Yet the proportion in this quintile of able-bodied people who are gainfully employed is roughly one third of the next, poorest quintile. We are not suggesting inhumane measures. How about just going back to the successful policy of workfare?
Some might argue current low unemployment makes this impractical. The argument ignores the fact that the labor participation rate is near an all time low. Pay people to stay home, and they drop out of the workforce.
Finally, attitude. Let’s glorify successful businesses instead of vilifying them. Mr. Biden and his crew spend their time educating the public and the lapdog press about the evil profiteering of America’s pharmaceutical and energy industries among others.
Public attitudes are important. Those activities which create jobs, wealth, and that envy of the world, the American way of life, should be celebrated, not harassed and harangued. Perhaps the GOP could legislate annual recognition for the top entrepreneur every year.
Call it a Super Bowl for entrepreneurship. Give the heroes of American economic success the recognition and acclaim they deserve. Greed may or may not be good; but creating wealth and jobs through economic growth benefits everyone.
So there are your marching orders, GOP.