Morici: Flawed Republican Policies Weaken Appeal of Conservative Principles
NEW YORK (TheStreet) -- Conservatives believe promoting economic growth and maximizing personal liberties best empower individuals and advances social progress. Yet, Republicans keep losing elections, because their policies are too often perceived to be unfair and prejudiced.
History teaches spending less and regulating only as much as necessary best promotes growth and creates good-paying jobs.
Liberals say President Obama must take a different tact because he faces tougher problems than any president since Roosevelt. Yet, the numbers tell a different story.
Early in his first term, the financial collapse caused unemployment to peak at 10%, but the crisis has passed. Home prices are rising again, yet growth has averaged a subpar 2.2% over the last three and a half years. The number of jobs created and wages paid have been woefully inadequate.Ronald Reagan faced double digit interest rates and inflation and unemployment peaked at 10.8% early in his presidency. He emphasized lower taxes and spending, lean but effective regulation, and sound money. The economy was growing at 5.2% at the same point in his recovery and created an abundance of good-paying jobs. Massive spending on entitlements and easy money policies provide some temporary relief for Democratic constituencies, but those don't create the foundations for robust, broadly distributed economic opportunities. Yet, Republicans face daunting challenges selling conservative prescriptions to voters, because the GOP often doesn't support genuine fairness in the tax system and policies that would promote more robust competition. Obama wants to eliminate special tax breaks for big oil and on investment income, which permit many corporate executives and financiers like Warren Buffet to pay taxes at lower rates than his secretary, but Republicans consistently oppose those reforms. Dodd-Frank imposes too many burdens on regional and community banks, which historically finance small businesses and much of the jobs creation. Republicans want to repeal this law, but won't get behind restructuring remedies that would protect against past financial abuses and enable small banks to flourish -- for example, separating financial houses that trade securities from banks, which make loans and take government guaranteed deposits, and limiting the size of the largest banks.
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