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Romney: Coming out of the closet as a Keynesian, but we already knew this, Part I

Andy's picture
Fri, 08/24/2012 - 9:53pm -- Andy

Earlier in our news section, we submitted a piece from Business Insider that analyzed a story from Fox News.  They were giddy of Romney’s tax and spending plan.  Here are the actual quotes from the analysis:

There is no longer any mention of tax cuts for the richest Americans (previously described as "job creators") and huge corporations. Rather, the emphasis is on tax cuts for the middle class.  This is smart for two reasons: First, the richest Americans actually don't "create the jobs"--a healthy economic ecosystem creates the jobs. Second, most Americans understand that the richest Americans and companies already have plenty of cash, while the vast majority of Americans do not.  Importantly, this new message is very close to Obama's plan, which also calls for extending the middle-class tax cuts.

Romney outlines a very reasonable energy policy. This policy calls for America to move aggressively toward energy-Independence, including by building the Keystone oil pipeline that Obama has blocked. Obama's stance on the pipeline has never sounded reasonable--we need oil, we already have thousands of pipelines, we're currently still importing too much oil from fanatical people who hate us, and the Canadian oil sands will be developed whether we buy the oil or not--so this pragmatism makes sense.

First, we would like to offer our congratulations to Business Insider:  You hit it out of the ballpark.  Romney certainly sounds Obama!  And that is not a good thing, especially if Romney is trying to paint himself as a “conservative.”  Perhaps since the end of the primaries, Romney needs to tack to the middle.  But then again, we already knew that Romney was never a conservative.  After all, Romney Care!  Is the inspiration for Obama Care!

Then Business Insider goes loopy:

Most importantly, Romney sounds as though he is backing away from an immediate focus on deficit reduction in favor of near-term stimulus.  Romney is now arguing for a moratorium on current tax rates and government spending to avoid the "fiscal cliff" that will otherwise hit the country on January 1--a cliff that, according to the Congressional Budget Office, will throw the economy back into a recession. Extending the current policies will vastly increase the projected deficit, but Romney no longer seems concerned about that. He makes vague references to minor future spending cuts on "discretionary non-defense spending" (a tiny portion of federal spending) and still suggests he might eliminate some tax deductions. But he refuses to say which deductions he might eliminate and now says he will make certain that his tax changes do not increase the middle-class's tax bill or share of the overall tax burden.  According to the Tax Policy Center, this will be impossible to do while also cutting taxes radically for the richest Americans, so it appears Romney is backing away from the idea that his tax cuts will be revenue neutral.

And Romney seems much less concerned about near-term deficits than he used to be.  Rather, he appears to be embracing the idea that stimulus that comes at least partially in the form of government spending is a good idea right now.  And that's encouraging. Because he's right.

Exactly how is this right?  Has Business Insider or anyone else heard of Greece?  Spain?  How about Zimbabwe?  Under such logic, Keynesian logic, the market will be too painful and it needs a boost to help overcome a recession or a depression.  Never mind what happens when there is monetary inflation.  If physical stimulus and government spending were such a good thing, why not do it all of the time?  Why shouldn’t the government and the private sector spend its way into fiscal nirvana?  Because that doesn’t work either.  Just look at Japan.  It’s been what?  Twenty years without solid economic growth?  Isn’t Romney the businessman in this fight?  Should he be familiar with things like the business cycle?  Never mind, he was part of big business that is need of a bailout when they over expand.

So all of you that wanted Romney, you are getting what you deserve; for all of you that are settling for Romney because he is NOT Obama!  The fix is on.

Next stop?  We will give you our analysis of the Fox News article.