Mitt Romney is a Big Government Progressive. He views the state as the answer to America’s ills. Where he disagrees with Obama is on managing Socialism better. Either way a Romney Presidency will still lead to a financial catastrophe since he is not an Fiscal Conservative.
According to the polls summarized by RealClearPolitics, Mitt Romney has been unable to win more than 25% of the Republican vote for the party’s presidential nomination for more than a year. This is because the former Massachusetts governor is not a pro-growth Republican. Instead, his economic platform reflects a man who is devoutly Keynesian, and who, as president, would not be able to reinvigorate the U.S. economy.
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Eliminating the death tax is certainly positive because it would unleash more capital into the economy. A 25% corporate tax rate would only cause the U.S. rate to be equivalent to the average rate for OECD countries. As a result, U.S. corporations would not gain a meaningful competitive advantage. And only extending current income tax rates and limiting the tax exemption on capital gains, dividends, and interest are unacceptable. But Romney’s defense of not completely eliminating the tax on capital gains, dividends, and interest is shocking.
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Based on the supply-side economic model, Mitt Romney and his tax platform will hurt the very people that he is trying to help. His plan will scarcely benefit middle and lower income Americans, effectively delivering four more years of the current economic stagnation. The wages and livelihoods of middle and lower income Americans will only begin to improve when investable capital becomes abundant, and what Mitt Romney is proposing will not make investable capital abundant. If Mitt Romney understood the supply-side model and specifically how capital formation increased real wages, he would never make such a defense.
Romney’s defense is rooted in the belief that those who have suffered the most economically deserve to have more money in their pockets. This is the Keynesian prescription of putting money into people’s pockets to spur consumer demand. More money in people’s pockets does nothing for capital formation, which is why Keynesian stimulus plans do not work.
The fact that Romney and Santorum are the top 2 choices for the GOP speaks volumes about the Party. It’s becoming clear the Republican Party is an economically Leftist party. Republicans obviously want Big Government and wealth redistribution, as long as it’d done by the GOP. After this election, Economic and Fiscal Conservatives will need to rethink our membership in the Republican Party. Why vote for as Party that just feels it can manage Socialism better. The Tea Party was all for nothing.
