Obama’s Economic Policies

…are actively hurting our economy and our businesses—and so us.  Here are two illustrations.

First, The Wall Street Journal:

Half of the nation’s 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009.  Corporate investment in new buildings has declined.

…business investment fell at a seasonally adjusted annual rate of 1.3%, according to a preliminary estimate from the Commerce Department.  The latest drop included a decline in investment in structures, such as buildings, at a 4.4% annual rate.  Investment in equipment and software stalled after growing at a roughly 5% annual pace in the first six months of the year.

It’s not just Big Business, though, the whole article from which the above excerpt came notwithstanding:

Of the four ways government can principally influence the economy for better or worse—fiscal policy, regulation, monetary policy, and trade—it appears that investors will continue to be forced to rely on monetary policy for help. Taxes will undoubtedly rise for some, and the one effective way the federal government could effectively ease more—regulatory policy—seems less likely now than ever before.  The Wall Street law firm Davis Polk has created a new business of simply keeping track of the seemingly infinite number of rules that will need to be written to complete the process of financial regulation put into place by Dodd-Frank.  Sadly, only 33% of the 398 required rulemakings have been finalized.  (Only 265 rules to go!)  Another 33% have yet to have even been proposed.  Is it any wonder the Fed has had trouble turning excess reserves into effective monetary stimulus?

What are we doing as a company in light of this uncertainty?  We’ve put on hold business expenses short of pencils, and any capital spending we were considering, including an update of the men’s bathroom some have begun to call “the latrine.”  Instead of calling clients and focusing on our research, we are scheduling, probably in vain, conference calls (read fees) with our attorneys and accountants to try to create contingencies against potentially bad outcomes for us in the tax code.  It has forced us to ask ourselves questions that seem at odds with economic growth, like, are there any unintended consequences of employing more than 50 people?

 

h/t for the second for The Spirit of Enterprise

Governor Bobby Jindal and the GOP

Governor Jindal (R, LA) had some blunt words for his fellow Republicans.  Among other things, he had this [emphasis added]:

It is no secret we had a number of Republicans damage our brand this year with offensive, bizarre comments—enough of that.  It’s not going to be the last time anyone says something stupid within our party, but it can’t be tolerated within our party.  We’ve also had enough of this dumbed-down conservatism.  We need to stop being simplistic, we need to trust the intelligence of the American people and we need to stop insulting the intelligence of the voters.

He added:

[S]top reducing everything to mindless slogans, tag lines, 30-second ads that all begin to sound the same.

Part of that “trust the intelligence.”

He made a number of other points; RTWT.

Taxes—What Mandate?

A bit more from the Senate Minority Leader.

Let me put it very clearly.  I am not willing to raise taxes to turn off the sequester.  Period.

Despite President Obama’s continued demonizing rhetoric at the expense of concrete proposals, Senator McConnell is quite clear:  tax revenues can be raised, by closing loopholes or by capping total deductions above an income level (a Romney idea being floated), but there can be no rate increases, and any revenue increases can come only in conjunction with tax reform and, insist other Republicans, with entitlement reform.

What Democratic proposals are there in opposition (or even rough conjunction)?  Obama is characteristically silent, reluctant to put his own name to anything concrete.  Senator Charles Schumer (D, NY) has a sort of idea, though, that’s pretty clear: Republicans should give up on tax reform that lowers rates in return for fewer loopholes; they should accept high(er) rates and closed loopholes.

There’s more of that bipartisanship, Progressive style.

In the end, though [emphasis in the original],

[W]e Republicans in the House and Senate think we have a voter mandate not to raise taxes.

Taxes and the Fiscal Cliff

As Senate Minority Leader Mitch McConnell (R, KY) pointed out the other day,

[T]here is no consensus on raising tax rates.

Additionally, McConnell reminded us

[W]e still have yet to hear an actual plan from the president for addressing the great economic challenges we face.  What’s needed now is a realistic and specific proposal from the president that can actually pass the Congress.

Indeed, we haven’t heard anything President Obama in the way of a specific plan, beyond two budget “proposals” from the last session that can only be taken as having been improv satire.

McConnell laid down his marker, and it’s a correct one:

One issue I’ve never been conflicted about is taxes.  I wasn’t sent to Washington to raise anybody’s taxes to pay for more wasteful spending and this election doesn’t change my principles.

Is Obama serious or not about recovering our economy?  We’ll find out in the coming days.

Conservatives and Communication

…or how we lost a Presidential election.  Note that carefully: we lost the Presidential election, we did not lose the election—we retained a vast majority in the House, we lost only trivially in the Senate, we gained three governorships to reach an historic high in the State Houses, and we held in the state legislatures.

The exit polls show that the voting population fundamentally agrees with conservative principles: Americans believe, by a 51%-43% margin, that today’s government already does too much that more properly belongs to the private sector.  By a 63%-33% spread, Americans said not to raise taxes as a means of cutting the Federal budget deficit.  Concerning the economy, the national debt, and the budget deficit, generally, the voters preferred the Republican over the Democrat.

Yet despite this, there is much bodice-rending, much breast beating, much wailing and wringing of hands over the Presidential contest defeat and a large argument that we conservatives must alter our message, must change our fundamental principles, in order to win another election.

I demur from this, not only because it’s defeatist, but because it’s wrong.

We conservatives, and the Republicans among us, have historically had a communications problem, and last week we lost a Presidential election that should have been a slam dunk.  We didn’t talk to all Americans about our values and principles, and we didn’t take our message of how those principles, implemented by us in this term, would help all Americans as individuals.  Instead, we just talked to one group of American citizens and fundamentally ignored the rest.

We made a speech to an NAACP convention and ignored Blacks otherwise—nationwide.  We made a few Spanish-language speeches in Florida and ignored Hispanics otherwise—nationwide.  We…ignored Asians nationwide.  We need to go back to being an inclusive political entity and not just talking about it.  We need to take our message into the neighborhoods where Blacks, Hispanics, Asians live and speak to them as fellow adult Americans—and especially not as Black-Americans, Hispanic-Americans, Asian-Americans.

We need, also, to be specific about solutions, and how they’ll help the individual to whom you’re speaking, his neighborhood, and the nation—in that order.  The “I have a plan” refrain is not only too Nixonesque, it’s too plainly empty.  Say the plan, don’t just claim its existence.  When the Progressives criticize it, and they will, ask what their plan is, and then point out they’re criticizing ours because they don’t have one of their own about which to talk.

Immigration reform?  Here’s one plan: secure our borders, make it easy to enter/stay legally and for as long as the immigrants—and visitors—want, deal with the population of illegal immigrants already present.  Ask what the other side has actually done about reform, besides talk.  Remind all, not just Hispanics, of the emptiness of Progressives’ words, made manifest by President Obama’s promise to Congressman Luis Gutierrez (D, IL) to work to reform immigration in return for the latter’s vote for Obamacare—and Obama’s subsequent complete lack of action for the next three years.

Affirmative action? Make the case that affirmative action is not just wrong morally, but inherently racist—and offer something else that is consistent with our principles and that actually addresses the problem that affirmative action originally was intended to correct: equal opportunity from the start.

Talk to everyone, also, as our fellow adult Americans, not as Blacks, or Hispanics, or Asians.  Immigration reform?  An item of importance to Hispanics, to be sure, but it’s important to everyone else, too.  Equal opportunity?  An item, under the guise of affirmative action, of importance to Blacks, certainly, but it’s important to everyone.  Especially party representatives and leadership need to do this, especially those we choose to represent us as politicians.  But all the rest of us, too, need to do this.

Further, from our listeners’ perspective, we need to explain how our conservative principles, and our solutions built on those principles, help each individual–help me.

Conservative or Progressive, at the individual level, we’re all alike, as both Adam Smith and Karl Marx understood: what’s in it for me.  The difference, though, between a Progressive and a Conservative is this: for the Progressive, it’s “This helps me, and so I think I’m better off.”  For the Conservative, it’s “This helps me, and so I think I’m better off.  And that makes me better able to help my fellows who aren’t as well off.”

From this local, neighborhood contact, we’ll reach all the other demographics into which pollsters like to fractionate Americans.  We’ll talk to the women who live there like the rational adults they are, and we won’t be using the Progressive pick-up line, either: “Hey, Baby.  Wanna see my…contraceptives?”  We’ll reach the married and unmarried, the young and old and ages between, we’ll reach the students and the working men and women and those out of work.

Next, we need to start now, and we need to do these things often; the future is now.  We can’t afford to wait until the next campaign season.  My wife has a motto hanging on the wall where she works out: “Do today what others won’t.  Do tomorrow what others can’t.”  That’s what the Democrats have been doing in communicating their…message…for years.

Speak.  Speak to individuals, speak in their neighborhoods, speak in their townhalls (that you ask them to help organize rather than just calling one together), and speak with—don’t lecture at.  Write.  Write to friends and family.  Blog.  Write letters to the editor, write editorials, and do these not just in the major national papers—as with speaking, go into the neighborhoods, write to the local papers, the Plano Star-Courier, the Commerce News Today, etc.

Don’t be afraid to talk about foreign policy.  Don’t be afraid to talk about social issues.  Don’t be afraid to talk about race.  Some of our principles need to be explained on moral grounds—don’t shy away from that.  Some of our principles can seem complex—don’t shy away from that.  Now, though, is the time to start talking in depth and not in cute 30 second sound bites.  Still, not all in one speech or in a single article, either, but cover them all, and cover them often.

Finally, the Republican Party must weed out the RINOs and it must lose, in Charles Krauthammer’s words, “candidates who talk like morons about rape.”  We’ve spent so much time in our own echo chamber that we’ve lost track of the way in which how we say things sounds to those outside our chamber: Sharron Angle’s “I don’t know that all of you are Latino.  Some of you look a little more Asian to me.”  Richard Mourdock’s “Even when life begins in that horrible situation of rape, that it is something that God intended to happen.”  Getting out and around will let us learn how that sounds to folks who don’t know us.  It will let us adjust our phrasing without adjusting our message.  And it will help the rest of us put aside those who actually believe “like morons about rape” rather than are merely clumsy in their speech.

But above all, don’t alter the conservative message by altering (actually, moving away from) the underlying principles of conservatism.  Remain true to those principles.  Anything else is just pandering, and the dishonesty of that will turn most people away.