How to grow the Economy

It is sad that many people who talk about growing the economy have no understanding of how the economy works, lack any understanding of economics, and are really just talking about what policies benefit them.  Here is how to grow the economy:

1.  Pay down the debt.  There are 2 types of spending: consumption, and investment.  Consumption spending is buying a new car, eating food, going to the doctor, etc.  This is about 2/3 of spending.  The other 1/3 is investment spending, which are things like building roads, builing a car manufacturing plant, building a tractor for a farm.  Consumption meets the needs of today; investment the needs of tommorrow.  Most government spending to fully include: Social security, Medicare, unemployment, medicaid, and the vast majority of the payroll tax cut are consumption spending.  Most government taxes take primarily from consumption spending.  So, government spending, and even tax cuts move money, primarily, to consumption.

Paying off the debt reduces the amount of money the government borrows.  As a result that money is free for others to borrow.  The majority of borrowed money is used for investment spending.  It is used to start and grow businesses, to build houses, and to create jobs. 

The primary harm to our economy from the Obama Administration — and the reason we have such a slow recovery — is because he are taking 1.3 trillion dollars a year out of money that would otherwise be invested in creating jobs.

Obama cut taxes, he increased spending.  This move money to consumption.  He did this by raising the debt, which takes money from investment.  While low taxes is importaint, the most importaing thing for our economy is to pay off the debt.

2.  Provide Stability.  Private business does best when the rules do not change in mid-stream.  The Obama adminstration has made a number of changes, and consistantly leaves the market in doubt.  Good government is consistant government.  Government where the regulations do not change every day.  Where government suppliers and contractors do not need to live with uncertainty every day if their programs will be cancelled.  Where government employees, military and civilian, know what their pay and benefits will be without them being changed every week.  A military family at any given time for the last few years under Obama has lived in doubt as to if they will get their next month’s pay check, in doubt as to what their healthcare will be, in doubt as to what their retirement will be, in doubt as to whether they can suppor their family.  This means — like anyone else — they tend to hoard cash, rather than investing the money in long term investments and retirement.  This hurts the economy.  The same is true with civilian federal workers — but in a greater degree.  Unlike military, civilian workers get much worse health, retirement, and pay.  Some full-time civilian employees make less than the poverty level (and do not get the military housing, food, and other benefits), and having just seen their pay cut 2.3%, and not knowing when or if they will get an inflationary adjustment.  This uncertaintly, again, hurts the economy.  Many government contractors — most in the military — are unsure of our time in Afghanistan or other expensive oversees activies.  They and their employees do not know if they will have a job or not.  It is far better for the government to make these decisions and stick to them than to have doubt; but Obama has failed to lead and resulted in economic uncertaintly for them.  Private buisnesses, under Obama, do not know what regulations will be.  They hold off making investments because of uncertainty over healthcare and other laws.  Bush was a model of consistancy and people knew what to expect and the economy grew.  Obama is not.

3.  End corrupt government.  Special economic interest groups have been given too much power.  Tax loopholes and corporate welfare are not part of a free economy.  In a free society the government does not have tax exemptions, special taxes, and all sorts of carved out provisions that give insiders with power free money at the public expense.  The economy grows best when their is a fair and equal playingfield.  We need to get the government out of the buisness of taking money from everyone and giving it to pet projects.  There is no reason to fund planned parrenthood, wind farms, oil drilling, economic oppertunity areas, ethonol, or farm subsidies.  We could save billions by ending this process of giving away one person’s hard earned money to someone else.

If we want to grow the economy, we need a President who understands how to do this.  Unfortunatly, what we have is a politician.  What we need is a leader.

Mitt Romney is not this leader either.  Romney has said everything to everyone.  Romney’s budget raises the deficit.  Romney is the king of special interest.  Gingrich showed he can govern, but doesn’t look like he has a chance to win.  Santorum is the only remaining hope.  Santorum never actually served as an executive anywhere, but in Congress he showed consistancy of charector.  He stood by his positions, even when they were unpopular.  He never wavered on foreign policy, on social policy, or fiscal policy.  He is not perfect, but he is a leader.  He supports making cuts to the welfare programs we need to cut.  He supports 75% of what is needed to fix this country. 

I’m not going to let the 25% of his mistakes detract from the fact that Romney and Obama are wrong 75% of the time, and Santorum is the better choice.  The only thing Obama and Romney stand for — when it comes down to it — are Obama and Romney.  They want power and they want to feed their ego.  Santorum has always stood for freedom and conservative values.  He is the only viable choice.

I know many folks have some issues with him, but a man is more than issues, he is a man.  Santorum is not perfect, but he is the only person running with a chance to win who actually has values and is willing to fight for them.  He is also the only person with even a remote chance of turning the country around.  Why?  Because the markets will have no clue what to expect of Romney or Obama.  Romney and Obama are corrupt.  Romney and Obama both have plans to raise the debt.  Romney and Obama would both increas spending and cut taxes until we default.

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