In his first term, President Obama has given us an
unemployment rate at or near 8 percent, more debt than President Bush’s 8 years
in office, and more despair. What is his
solution to his less jobs, more debt, and more government agenda? It’s the same failed deficit spending, and
more regulations so government can have more control over our lives and
businesses.
Policy makers and the established elites debate what the
best policy is to fix our economy and get it growing again. Supply-siders argue that we must keep taxes
low so that the private sector can create wealth and increase production, and
create jobs. They seem to be willing to
ignore the problems of our high debt and deficits to keep taxes low on
individuals and small businesses. Then
there are the deficit hawks who are willing to raise taxes while cutting
spending to shrink the overall size of government. The American people just want their leaders
to use Common Sense to fix our nation’s problems. Common Sense argues for low taxes, spending
restraint, and more freedom for all Americans.
Why can’t we have an economic plan that maximizes production
to create jobs and grow the economy, and shrink the overall size of
government? Common Sense says that with
the combination of low taxes, sound money, free trade, less regulations,
balanced budgets, less spending, and protection of property rights will grow
the economy and save our Republic (with an ultimate goal of fundamental tax
replacement).
Keeping taxes low will help individuals and businesses,
particularly small businesses, keep more of their earnings so that they can
save and invest more of their own money.
The supply-siders are correct that lower taxes can lead to greater
wealth creation and increased production by the private sector. I fundamentally reject the idea that having
low tax rates increases our deficits.
What increases our deficits is spending in excess of our receipts
(excessive spending).
The real solution that will close our deficit gap and fix
our deficits is not to raise taxes, but to cut spending and shrink the size of
government. The deficit hawks are also
correct to point out the dangers of having such a high deficit and national
debt. That is why Common Sense says to
cut spending, unnecessary regulations, and shrink the size of government, while
keeping taxes low. The decrease in
spending and regulations, and smaller government will be what pays for the
lower taxes.
Common Sense argues that a Balanced Budget Amendment (BBA)
that requires a balanced budget every year, requires a two-thirds supermajority
to raise taxes, and limits spending to 20 percent of GDP will bring
accountability and checks on the federal government. This is the only way to force our
Representatives to spend only the money that we have. If we can’t systematically encode these Common
Sense ideas into the system by law, then we have no ability to force our
elected officials to do what must be done.
Common Sense also proposes that we need to expand free
trade. Free trade helps grow our economy
because when American companies can buy and sell more goods and services to
more people, we get more jobs and growth.
According to Kim Holmes at The Heritage Foundation, free trade has
“created millions of jobs and is responsible for almost a third of the nation’s
gross domestic product (GDP).”
Common Sense argues for sound money. A good example of seeking sound money is that
during the Ronald Reagan Administration, Reagan’s monetary policy was to keep
inflation low and strengthen the Dollar through price stability. Another aspect of having sound money is
making the value of the US Dollar reliable, constant, and certain. We should also go back to a Classic Gold
Standard, and even advocate for an International Classic Gold Standard.
The final Common Sense idea to create jobs and shrink
government is the protection of property rights. People should be encouraged to acquire and
possess their own property, and have the freedom to use their property the way
they think is best and not dictated by central planners. The government can seek justice by protecting
property rights against people who encroach on others, which should also
include encroachment by government itself.
Deficit hawks and supply-siders should unite around these
core set of Common Sense ideas. These
Common Sense ideas focus on maximizing production to create jobs and growth by
keeping taxes low and expanding free trade while also addressing the dangers of
high deficits by shrinking spending, regulations, and government. These Common Sense ideas also include accountability
and justice by requiring balanced budgets and the protection of property rights
against encroachments by people and government.