How Republicans, Too, Can Botch the Economy

October 19, 2010 RSS Feed Print
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If Republicans sweep the midterm elections and take over Congress, as many expect, they'll have a chance to correct some of the mistakes the Obama administration made two years earlier.

Or repeat them.

[See how the middle class is shrinking.]

Politicians repeatedly misunderstand why voters send them to Washington. Every time there's a change in the status quo, the new blood concludes that the electorate has issued a "mandate" and demanded sweeping change. But voters don't always want sweeping change. Mostly, they want the things that aren't working right to work better. Still, the empowered newcomers seize the moment to institutionalize as much of their ideological agenda as possible. Time and again, the overreach turns off voters, and they seek change all over again.

The Obama administration made that mistake when they swept into office in 2009, pushing too hard on pet initiatives like healthcare reform, energy policy, and immigration reform while paying too little attention to jobs and the flat-lining economy. That's why they're in a pickle now. The Dems put too much faith in the huge 2009 stimulus plan, assuming it would float the economy like a massive helium injection as the money flowed out of Washington. It did help end the recession, but wasn't nearly the cure-all that Democrats promised. While turning to other priorities, the Dems failed to generate any meaningful aid for small business, solve the foreclosure problem, address the huge national debt, or figure out what to do about the Bush tax cuts that are set to expire at the end of 2010. Their economic policies look like a failure now because they took their eye off the ball.

[See how unemployment will swing the elections.]

Republicans seem poised to do exactly the same thing if they win control of Congress in November.

Republicans, obviously, are campaigning against the Democrats' failure to fix the lousy economy. But their legislative priorities, if they take control of Congress in November, could be even more detached from the actual problem than the Democrats' were in 2009. One top priority of conservatives and Tea Party sympathizers, for example, is repealing President Obama's healthcare reform law, a key plank of the "Pledge To America" that supposedly lays out the Republicans' agenda. "Because the new health care law kills jobs, raises taxes, and increases the cost of health care," the manifesto states, "we will immediately take action to repeal this law."

Oh goody. Unemployment is likely to surpass 10 percent next year, the national debt will continue to spiral out of control, and there's a chance we could descend into another recession. And the Republicans plan to address all that by mounting another vitriolic political battle to return the health care system to the glorious status quo of 2008, when everything was working just fine and all Americans had access to affordable healthcare. Now that is clear forward thinking.

[See 4 things missing from the "Pledge to America."]

Never mind that repealing Obamacare is impossible as long as Obama is president, since he'll obviously veto any measure that would undo what he considers the crowning achievement of his first term. To get around that inconvenience, Congressional Republicans are strategizing with GOP governors to dismantle Obamacare in pieces before it goes into effect, through a combination of lawsuits, delaying actions, counter-regulation at the state level, and political interference in Congress. So any voters who were disappointed when this divisive battle finally ended earlier this year will enjoy a new outbreak of political warfare, if Republicans get their way.

Remember, this is the big plan to help restore the U.S. economy to greatness.

Other Republican priorities outlined in the pledge and in campaign speeches are the usual fare: Lower taxes, fewer regulations, token efforts to rein in Congressional earmarks, and small spending cuts that won't make a dent in the nearly $14 trillion national debt. Republicans want to get the debt under control too, and they're really determined, they just haven't explained how yet.

Here's another idea for whoever ends up controlling Congress: Consider only measures that will lower unemployment, beginning the moment the legislation passes, and put off everything else except matters of national security. When the unemployment rate, which is now 9.6 percent, drops below 7 percent, that will be the signal that it's okay to focus on other stuff.

[See why the Social Security freeze is fair.]

There are obvious problems with Obama's healthcare plan, but they didn't contribute to sky-high unemployment and repealing them won't create jobs any time soon. So leave that alone until the economy has healed. Lower taxes would be great—but only if they're paid for in real terms, rather than empty pledges, and don't raise the national debt any further. Fewer regulations would be welcome, too—as long as it's clear that they'll help create jobs, and not just line the pockets of big business at consumers' expense.

And if the Democrats win by some miracle, they should put off new battles over their own priorities—immigration reform, energy legislation, and some smaller-bore stuff—until they've succeeded on their second effort, or third, to fix the economy. Sure, the government can handle more than one big thing at the same time, as Obama likes to say. But for once, let's not.

Tags:
Democratic Party,
2010 Congressional elections,
employment,
Obama administration,
Republican Party,
unemployment,
Barack Obama

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Thank you, for writing an article that actually addresses the problem. Politcians are so busy 'wanting to get their way' on issues, they never fix anything. I, for one, would like to see how the new healthcare can work for people before it's scrapped. I don't understand why all of us are required to carry car insurance to drive, totally accept this, and act like it's unconstitutional to be expected to carry health insurance. Maybe the insurance companies are filling political and media pockets to keep it from coming to light because they will be expected to actually use premiums to pay for customer healthcare.

Lori of NC 5:24PM November 29, 2010

Excellent comments. It's rare to find a thinker in some of these commentaries.

Simon of OH 10:34AM November 17, 2010

Is there a govt. program that has ever worked and come under budget? What makes anyone think the govt. can spend your money better than you can. Its truely amazing how many Americans think the govt will give something for free. The govt cannot tell you that you have to buy something or go to jail (Obamacare). Medicare and medicaid are broke now. What do you dumb hippies think will happen when they dump 340mil people into it. We could get rid of 25% of govt employment and never miss a beat. I would be willing to bet we could get rid of most all govt jobs and and the private sector take control and do a better job (i.e. postal service vs. fedex or ups). Private companies must turn a profit to stay in business, while the govt can lose money hand over fist and just have us pay more in taxes. If we are serious about growth in employment, we should cut corprate tax rate to no more than 5%. Let companies keep more of its money so they can grow their business as they see fit. Pres. Oblama has never made a payroll, yet now he owns a car company and he's looking to take over the insurance and medical industries. As the great Pres. Reagan said, " Government is not the solution, government is the problem.

Russ of TX 11:14AM November 12, 2010

Rick Newman

Rick Newman

The global economy is mysterious, even scary. Chief Business Correspondent Rick Newman connects the dots. In addition to his writing for U.S. News, Rick is the co-author of two books: Firefight: Inside the Battle to Save the Pentagon on 9/11, and Bury Us Upside Down: The Misty Pilots and the Secret Battle for the Ho Chi Minh Trail.


Read Rick's latest blog entries here.

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