The Republican Pledge: A Plan To Create Jobs?

The Republican Party this week issued its Pledge To America. The sub-title suggests that it is somehow a new governing agenda built on the priorities, principles, and values of our nation. It is neither new, nor founded on anything like America’s founding principles and values. It contains so many distortions and misrepresentations and half-truths that it is hard to decide where to start.

The first thing that the Republican pledge purports to be is a plan to create jobs, end economic uncertainty, and make America more competitive. The misrepresentations ensue. The plan outlines the Republican talking points: the government’s heavy handed approach to our economy must end, jobless claims continue to soar, and it’s time to end the “liberal Keynesian experiment” that prevents employers from investing in our economy. Here’s some reality.

The Federal government did need to step in and take immediate action to save the economy during the final months of the Bush administration, and in the first months after President Obama was sworn in. The reason was that our economy was on the brink of complete collapse. Republican assertions notwithstanding, the bailouts and stimulus were game changers.

Fortunately for the American people, Ben Bernanke, a student of American economic history, was at the helm at the Federal Reserve, and he, along with officials at Treasury understood that the error made during the Great Depression of the 1930s was that the government did not move far or fast enough. Even President Bush, who contributed mightily to getting us into this mess, should at least be credited for knowing when to get out of the way and let smarter people than he fix what he had broken.

The assertion that weekly initial jobless claims continue to soar is just not factual. Weekly first-time jobless claims are down approximately 15 to 20 percent from a year ago, and they fluctuate week to week. Recently reported weekly fluctuations have suggested a further downward trend.

The “liberal Keynesian experiment” the Republicans are ranting about is, simply put, the very same fiscal policy that the government has used effectively for about 70 years to reduce the impact of economic downturns on American workers and the American economy. The idea being that when we go into a recession — which means that people and businesses are experiencing hardships that lead them to spend less — the government steps in to buy goods and services to keep the problem from getting worse. The alternative is a downward spiral — unemployed workers and declining businesses reduce spending further, and that leads to more layoffs and a further decline in economic activity.

The Republican rant also includes the bizarre assertion that the “constant threat” of new taxes somehow prevents investors and entrepreneurs from putting capital at risk. Guess they don’t understand capitalism 101. Investors and entrepreneurs definitely don’t like economic uncertainty, or increased taxes. But the reality is that the tax increases they are ranting about are small increases in marginal tax rates for only the most wealthy Americans. And this group still enjoys the reduced rates as we all do on the first $250,000 in income.

The real uncertainty faced by investors and entrepreneurs is about the overall direction of the economy, and the availability of small business capital. Will will continue to see increasing demand for goods and services, which will make or break any capital investments made, or will there be a double-dip recession? Will we continue to see an overall improvement in the availability of capital for small businesses, the fuel needed for job-creating investment? When President Obama took over in January 2009, recall that the credit markets were frozen, and many small businesses were losing access to working capital.

Another assertion in the Republican Plan to Create Jobs is that “permanent bailouts” and “government takeovers” create uncertainty for private investment in our economy and keep employers on the sidelines. The truth of course is that the bailouts and takeovers were temporary in nature and absolutely necessary to stabilize the economy and keep many millions of Americans employed over the past two years. Most of the money spent by the government has been repaid, or will be soon.

So what are the specific policy solutions in the Plan to Create Jobs?

Permanently Stop All Job-Killing Tax Hikes
Give Small Businesses a Tax Deduction
Rein in the Red Tape Factory in Washington, DC
Repeal Job-Killing Small Business Mandates

The truth is that under President Obama tax rates have been reduced for all but the wealthiest Americans. President Obama’s proposed small business tax cuts and incentives have been held up in the Senate by Republican filibusters. And the regulation that could have helped our economy avoid the collapse of our financial system, the housing industry, and the economic impact of the BP oil rig disaster, were all eliminated by anti-regulation politicians.

Despite all the efforts of the Republicans in Congress, the truth is that the economy is clearly on its way to recovery. What we need are politicians who understand that now is the time to put our heads together and find real, innovative ways to make America more productive and competitive as the world economy recovers. We need to get back to work — together.


Jonathan Cykman, EzineArticles.com Basic PLUS Author

About cykman

Jon Cykman works in Washington, DC as a consultant, and is long-time student of American Politics. He started out handing out campaign materials for Hubert Humphrey during the campaign of 1968, and later went on to earn a B.A. in Political Science from the State University of New York, College at Purchase in 1978, and an M.A. in Public Affairs from the University of Texas, Lyndon B. Johnson School of Public Affairs in 1980. Jon retired from Federal Service after 31 years of service, and lives with his family in Catonsville, MD.
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1 Response to The Republican Pledge: A Plan To Create Jobs?

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