Rep. Scott Tipton looks backward to the nation’s economic future

Congressman Scott Tipton wasted no time in jumping on the president for the weak job numbers in May. “There’s a path to job creation and economic recovery in this country, but with the most recent jobs numbers showing an increase in unemployment during May and 40 straight months of unemployment over eight percent … it’s clear that the president is not following it.”

In short, Tipton wants a Republican economy.

The “path” he refers to is the Paul Ryan Budget that would further reduce taxes on the rich, change Medicare as we know it, raise taxes for workers and further shrink the middle class. A continuation of the small-government, free-market economic polices of the Bush administration, the Ryan path leads to the same ditch President George Bush left the country in.

What Tipton and his colleagues fail to appreciate is that we don’t need to elect Mitt Romney to restore the Republican economy. As Nobel Prize winning economist and New York Times columnist Paul Krugman says, “That’s precisely the policy we’ve been following the past couple of years. Never mind the Democrat in the White House, for all practical purposes, this is already the economic policy of Republican dreams.”

Federal tax policy is a holdover from the Bush administration. Republicans pressured Obama into continuing the economically disastrous Bush tax cuts. And with most borrowing obstructed by congressional Republicans, the president has governed under restraints designed to frustrate his efforts to stimulate the economy by spending on infrastructure, education, health care and other economic and socially beneficial programs.

As Krugman asked rhetorically, “Isn’t Obama a big spender? Actually, no; there was a brief period in late 2009 and early 2010 as the stimulus kicked in, but that boost is long behind us. Since then it has been all downhill.”

The extensive layoff of pubic employees, rising higher education costs, reducing benefits for the needy and similar effects reflect shrinking government, not the profligate spending Republicans accuse the president of. While the frugality may be born of necessity — inadequate government income and inability to borrow — the effect is nevertheless decreased government spending.

While the government lacks money to stimulate employment, corporations have plenty, but they are determined not to spend it. As Reuters economist Felix Salmon wrote, “High corporate profits and low levels of job growth are two sides of the same coin. If things were working properly right now, companies would take their excess revenues and use them to hire more people. Instead, they’re basically just letting those excess revenues sit on their balance sheets as cash because they’re scared to invest in themselves. It’s frankly pathetic.”

Krugman and Salmon agree that, because the private sector refuses to spend, government must — even if that means borrowing. As Salmon explains, “The government can borrow at 1.45 percent: It should do so, in vast quantities, and invest that money back into the economy itself. Take a few hundred billion dollars and use it to fix our broken infrastructure, to re-hire all those laid-off teachers and firefighters, to provide some kind of safety net for the millions of Americans who have been out of work for more than a year.”

None of this suggests that the May employment numbers are not bad news for the president and his party. However, the administration points out, jobs have increased steadily for 27 months straight, though at a slower pace than is required to return the nation to a healthy economy. While the May figures are down, they are still positive.

Obama will need to defend his economic record against both just and unjust charges, but he should not limit his responses to defending his policies.

Rather, he should, as Paul Krugman does, call out the Republican economic program for what it is: “a gigantic con game: it depends on convincing voters that the bad economy is the result of big-spending policies that President Obama hasn’t followed (in large part because the GOP wouldn’t let him), and that our woes can be cured by pursuing more of the same policies that have already failed.”

While the economic path forward may be uncertain, there is no turning back. We have already been down that road.

Bill Grant lives in Grand Junction. He can be reached at .(JavaScript must be enabled to view this email address).


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More lies from the left.

1.) The Bush tax cuts not only cut taxes for the rich, but cut taxes for everyone. If they are allowed to expire, millions of married couples of all income brackets will see their taxes explode due to the reconstituted marriage penalty.

2.)We don’t know how much Obama has overspent because there has not been a budget passed by the Senate of the United States in 1100 days. That’s right, the US has been operating without a budget for almost 3 years. We do know that the three years of the Obama Administration have brought us the three largest deficits in the History of the United States. This is without the full implementation of Obamacare.

3.) US companies are not investing because they are incapable of knowing how much they will have to budget for Health Care costs. The enforcement of Obamacare will lead to a precipitous rise in the unemployment rate as companies will be forced to shed jobs to afford the increased costs of the bill.

Finally, lets talk about already being down that road. If the Republican policies are rooted in the 80’s and 90’s, the Democrat policies are rooted in the 30’s. The policies that failed to halt the Great Depression are now being proven by their failure to halt the Great Recession. The Great Entitlement Bomb, which started with Social Security, is ready to go off. Medicare and Social Security will be unfundable within 15 years. Medicaid will bankrupt the Government halfway through the Baby Boomers retirement explosion when all of those Golden Ager’s discover they need assisted living, but they don’t have the insurance or assets to pay for it.

The Untied States is getting ready to pay a steep price for the blind entitlement policies of the Communist err Democrat Party.

Kevin, Kevin, Kevin, don’t you ever tire of singing the same song?
1) Increasing the tax rate for the top earners in the U.S. from 35% to 39% is hardly an explosion, nor will it impact you, since I’m sure you aren’t part of the 1%.
2) We do know what has been spent during the Obama administration. We also know that the lack of a budget quoted by all Republicans is the direct result of Republicans fillibustering in the Senate. You can’t blame Obama for things your party does. Well, you can, but it wouldn’t be factual.
3.)U.S. companies aren’t investing because high unemployment has driven down demand for their products. If the GOP would stop stalling on things like the transportation bill that would put construction workers back to work, we might see investment all over the place. By the way, clearly you know nothing about “Obama Care.” You keep repeating the same old talking points, but it isn’t Obama that is increasing insurance premiums—it is insurance companies. Maybe we need to take the profit out of insurance,and go to a single payer plan—since Republicans don’t like the idea of making everyone pay for insurance. Instead the uninsured just go to the emergency room, and hospitals jack up the prices for everybody so that they don’t go broke.
Finally, we have been down the road of tax cuts. If they had worked we would have lots and lots of jobs now. Instead we have high unemployment. Kevin, WHERE ARE THE JOBS PROMISED BY BUSH?

Claudette:

First, I was sorry to hear of your medical situation and I hope everything turns out to be well.

Now back to my bullying ways.

Ending the Bush Tax Cuts means much more than just increasing one rate. You are right, I am not in the top 1%, but it was only after the Bush Tax Cuts went through that my wife and I did not owe money to the IRS every year.

Two your excuse of a Republican Filibuster is false. The Senate has not even tried to produce a budget. This stretches back to before the 2010 election. Not only that, but last year the Senate Rejected President Obama’s Budget by a 99-0 vote.

Three, yes Insurance Companies are increasing premiums. Why? They are doing it in anticipation of more mandated programs hidden in the Obamacare Bill. They are already on the hook for thousands of dollars of mandated “free” services. We all know there is nothing free. Somebody will have to pay for it. Until there is settlement of the Obamacare Bill, companies will continue to hold off hiring. Once they know whether they are going to be forced to foot the bill or not then they will know what will be available for new jobs.

Finally, Claudette it is time for the Democrats to put on their big adult pants and stop blaming President Bush. Your guy has been in office for 3 1/2 years and the economy has not improved one whit. He owns this economy. He owns the jobless rate. He owns the lack of private sector jobs. He owns the budget deficit and the National Debt increases. He owns the enormous increases in energy costs.

Thanks for ignoring the real situation facing the Government of the Budget, the Giant Entitlement Bomb that is about to explode our deficits and debt even worse. Of course when it happens, it won’t be the Democrats fault, because you are the Party of no responsibility, of point the finger at the other side.

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