Saturday, April 9, 2011
No Apology: Solving the Deficit
1. Raise taxes
2. Reform (aka, cut) entitlement spending
3. Cut defense spending
4. Economic recovery
So which tools would Romney use?
Definitely not 1 or 3. Romney cites defense spending as a percentage of the GDP, which gives him an opportunity to claim that defense spending is actually lower than the defense spending of Russia and China. He is technically right (if you compare it like that).
Romney also makes it clear that "lower taxes and a simpler tax code will help families and create jobs." So he rules out number one, but in an effort to use number four. Romney devotes an entire chapter to how he would reform entitlement spending. I have been satisfied. I think we can safely say that Romney would use the second tool. I am also convinced that Romney does have the right formula to lead an economic recovery. However, all presidents want a healthy economy. It is not always that easy (see Obama, Barack).
So here are a couple of things to ponder:
1. There are always political restraints. The talk radio crazies who have demanded that John Boehner cut $61 billion from the 2011 budget sadly avoid the reality of there being an opposing political party in the mix. They would prefer to run off the cliff. How flexible can Romney be on the taxes and defense issues? I would rather see Mitt slightly raise some taxes and slightly decrease defense spending, in order to get concessions on the other side regarding entitlements. Our national debt is too big to remain slaves to the "no compromise" morons.
2. Can an economic recovery and entitlement reform alone cure the deficit problem? I am not sure. Again, we may need some flexibility.