Of Donkeys and Elephants: Economic policies for a better economy

The economy is coming down to ideological beliefs. The democrats want to tax the quote “rich” to fix the deficit and the republicans want to give tax breaks to the wealthy because they seem to put more money in the economy. This is not what the country needs.Despite what republicans say, President Obama does not have the ability to wave a magic wand and make the economy better. It is far more complex than that. But policies put forth by President Obama’s administration have stalled the economy from the recovery it needs with legislation like the stimulus package and heavy-handed regulations. The stimulus package was a short-term fix for a long-term problem. It manipulated the free enterprise system, which as a result led to a downgrade in America’s credit rating for the first time in history. Free enterprise without the influence of the federal government works better. Where business can turn a profit, pay employees, and then the employees put the money back into the economy. This is really basic economics.

As for regulations, Wall Street, multibillion dollar revenue banks, and huge corporations need stricter regulations, but sadly this hurt the local banks and businesses most. It is true, JP Morgan should not be aloud to lose two billion dollars and not have to have an explanation for it. Sadly, the federal government gets away with this every day. There needs to be regulation to aid in a working capitalist system. These are things that are at the core of America’s economy, which has led to a very slow recovery from the recession.

President Obama had a democratically controlled senate and congress his first two years in office, this is how things like Obama Care was able to get passed without a single republican vote. So much for democracy where two parties come together to pass legislation. This is why there is such gridlock on Capitol Hill.

Governor Romney has to make a case that his business experience makes him the man for the job as president. He has brought companies back from total disaster, saved the 2002 Salt Lake City Olympics, built businesses from the ground up, and all of this without a dime of taxpayer money. Now this is how it will translate to his job as commander and chief. The plan is, decrease regulations and champion small business through not raising taxes, tax reform, putting Americans back to work.

Not Raise Taxes: To make a bad economy worse, raise taxes. There needs to be steps to cut the spending and get back to a balanced budget. This is how former presidents Ronald Regan and Bill Clinton were able to have such strong economies during their time in office. A balanced budget is everything is to get to a better working economy. Raising taxes is not a solution, balancing the budget is.

Tax Reform: Bring down taxes are a step, but tax reform is needed. The amount of tax dedications available that a business or an individual can take is complicated. Most people, unless they have really good accountants, do not get the chance to take advantage of all the dedications. This is unfair to them. Shrinking deductions is a step, but it will not fix it entirely. Their needs to be steps taken by both parties to begin to fix the tax code, but as of now Mitt Romney is the only politician running with a plan to begin the process of getting this done.

American business, big and small are nervous now days. They do not know where the country is headed. Gov. Romney wants to create 12 million jobs, not with a quick fix stimulus package, but with long term structural plans such a certainty in the tax code as well as a cut in heavy-handed regulations. This is chance to give American companies an economy to believe in again.

There is great uncertainty in the economy these days. Pres. Obama’s plan is another round of stimulus, America does not need to go down that failed route once again. Gov. Romney’s plan is simple, the federal government needs to be reduced and the private sector needs to prosper. If the govern becomes bigger than the private sector, it will not be sustainable. The private sector is far better at creating a strong economy than the federal government. Putting certainty back in the private sector is the best way to get back to a successful economy.

BY ALI BOETTCHER boett098@d.umn.edu

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