Republicans can start by taking the time to read the first Obama budget document, "A New Era of Responsibility." The word "investment" occurs over 140 times in its 142 pages. But this "investment" isn't private capital invested in private start-ups, what Mr. Kemp constantly called "entrepreneurial capitalism" and what most parents hope their children will join. Mr. Obama's document genuflects to "the market economy," then argues that it won't endure unless we "sacrifice" (through tax increases) to make "overdue investments" (which literally only means public spending) on four explicit goals: green energy, infrastructure, public health care, and education.
If the Republicans want to formulate an effective response to the Democratic Party's big spending splurge then one part of their response should involve very empirically based attack on the social investment rhetoric that Obama uses. Does spending on each of these favored areas of the Democrats really increase economic growth? What are the Democrats spending on? What's the ROI of each area?
Start by looking at those spending plans that are most obviously stupid. The huge Obama budget has items which are pure pork waste. Build up a list. Then take items that require more economic analysis and get more libertarian economists to do analyses. Come up with models of how much Obama's plans will lower economic growth in the long run by displacing more productive private investment.
|Share |||By Randall Parker at 2009 May 09 08:12 AM Politics Pork Spending|