The truth is non-partisan

In a speech yesterday to the House Republic Conference, Mitt Romney
outlined six proposals to get the economy moving. Here is a summary
with my comments:

"First, there are two ways you can put money into the economy, by
spending more or by taxing less. But if it's stimulus you want, taxing
less works best. That's why permanent tax cuts should be the
centerpiece of the economic stimulus."

"Second, any new spending must be strictly limited to projects that
are essential. How do we define essential? Well, a good rule is that
the projects we fund in a stimulus should be legitimate government
priorities that would have been carried out in the future anyway, and
are simply being moved up to create those jobs now.... As we take out
non-essential projects, we should focus on funding the real needs of
government that will have immediate impact" He mentions replacing and
repairing military equipment, as an example.

"Third, sending out rebate checks to citizens and businesses is not a
tax cut. The media bought this line so far, but they've got it wrong.
Checks in the mail are refunds, not tax cuts. We tried rebate checks
last year and they did virtually nothing to jump-start the economy.
Disposable income went up, but consumption hardly moved. Businesses
aren't stupid. They're not going to invest in equipment and new hires
for a one time, short term blip."

"Fourth, ... as soon as this economy recovers, we have to regain
control over the federal budget, and above all, over entitlement
spending."

"Fifth, we must begin to recover from the enormous losses in the
capital investment pool. And the surest, most obvious way to get that
done is to send a clear signal that there will be no tax increases on
investment and capital gains."

"And finally, let's exercise restraint in the size of the stimulus
package." He had proposed $233 billion last year. He really doesn't
define what he means by a stimulus package. Is that the new spending
he is talking about in number 2? He doesn't talk about bailouts. Is
that what he means by a stimulus package? Where does he stand on
bailouts to his Wall Street and banker friends?

Here is some analysis that makes sense. He says, "Predictions that we
are almost out of the woods, based on the length of prior recessions,
are wishful thinking. Americans have lost some 11 trillion dollars in
net worth. That translates into about 400 billion dollars less annual
consumer spending in the economy.

"There's something else people don't talk much about: The pool of
investment capital—all the money available for new investments,
business start-ups, business expansions, capital expenditures, and new
hiring. The size of that pool has shrunk by trillions of dollars. This
was a huge loss in value, and the effect could be felt for years—in
businesses that don't start up or grow, in jobs that don't get
created."

I agree with much of what Romney says, but I still have some lingering
questions. Mostly I'm concerned that he still believes in a federal
government that takes care of people, rather than one that let's
people take care of themselves.

Romney says, "The difference between us and the Democrats is this:
they want to stimulate the government, and we want to stimulate the
economy." However, Romney still wants to preside over big government -
and he still proposes government that is unconstitutional.

Read his whole speech at
http://www.freestrongamerica.com/blog/item/2009/01/30/overnoromneysemarktotheouseepublicanonferenceetreat