Romney's economic plan: Fix bayonets and pass the Wonder Bread
The basis for Mitt Romney's economic plan is that trickle-down economics works. No doubt trickle-down economics works, but the problem is that it only works for guys like Romney! In other words trickle-down works for about 1 to 2 percent of the American population. That’s especially true nowadays, because the U.S. economy is joined at the hip to the global economy and trickle-down is based on the premise that what trickles down will trickle down into the hands of Americans only in the form of investment in plant and equipment, infrastructure, the hiring of more workers, etc. right here in the good old USA.
Here’s a quote from Thomas Jefferson, the third President of the United States and the primary author of the Declaration of Independence: “Merchants have no country. The mere spot they stand on does not constitute so strong an attachment as that from which they draw their gains.” Jefferson wrote that in 1814 and what he wrote is as relevant today as it was when he wrote it.
Is there any doubt in anyone’s mind that Romney’s economic plan favors merchants without a country--multinational corporations, large businesses, and international jet-set investors--over the average American working man and woman who’s earning less than $40K per year or the mom and pop Main Street American businesses that are struggling to survive? Who honestly believes that merchants will invest in countries such as America when they can get more bang for their buck in, say, China or India? In a free market system, when it comes to making a buck, patriotism and the economic welfare of one's country and its citizens is paid nothing but lip service.
If the American economy and the rest of the world’s economy, were not in the fragile and precarious state that they're currently in and the jobs situation in America wasn't as poor as it is, then perhaps there’d be no compelling reason for commentaries such as this. But social issues and many other important issues, given the partisan and ideological nature of the American political process, along with all the finger-pointing and blame games, don't have a chance in hell of being advanced and resolved in a reasonable, balanced, level-headed, and bipartisan manner if the U.S. economy falls back into a severe recession. And given the Republicans’ methods and history of fixing the economy, we could very well be thrown back into another deep and prolonged recession should Romney win the election.
American economic history demonstrates that Republicans have a tendency toward addressing economic issues from the top down, i.e. trickle down, instead of in an across-the-board and equitable manner that benefits the majority of Americans. There are simply too many poor Americans and too many living a hand to mouth existence nowadays to risk heading down the trickle down route. Indeed, nowadays millions of Americans have fallen off the economic cliff and millions more are teetering on the brink. The Republicans' gang-buster economic approach to reducing the debt and deficit and reining in social spending might not cause significant and prolonged damage to a healthy and thriving economy, but in today's economy, it's a recipe for disaster and much social strife.
Many may not agree with Obama's economic policies--especially rich folks and wannabe rich folks--but at least Obama is taking a much more balanced and equitable approach to addressing the nation's economic woes than Romney or any other Republican will. Romney's "plan" is nineteen-eighties Reagan all over again. And we all know what occurred then. When Reagan took office in January 1981, the unemployment rate was 7.5 percent. It dropped to 7.2 percent 3 months later and then rose to a high of 10.8 percent and didn’t come back down to 7.5 percent until 32 months later. During that time, the unemployment rate remained at 10 percent or above for 10 months in a row and the GDP dropped 2.7 percent. And to this day, the unemployment rates under Reagan were the highest America has experienced since the nineteen-thirties.
Should Romney win the election, those that voted for him are in for a big letdown in terms of an improved economy. Very few serious economists, if any, actually believe Romney when he says that he has a “plan” that will create 12 million new jobs, cut the debt and deficit, cut taxes by $5 trillion through elimination of certain deductions and loopholes, and increase defense spending by $2 trillion. And one does not have to be an economist to come to the conclusion that Romney's "plan" for the economy doesn't add up and that it's nothing more than voodoo economics.