Boehner On Jobs, Debt Limit, And The Economy
Earlier today, Speaker John Boehner spoke to the Peter G. Peterson Foundation’s 2012 Fiscal Summit. Here’s a few of the highlights of his plan from the Speaker’s website, along with commentary, of course (emphasis in original):
In remarks this afternoon to the Peter G. Peterson Foundation’s Annual Fiscal Summit, House Speaker John Boehner (R-OH) will renew his commitment to the principle he set forth at the Economic Club of New York one year ago – noting that the debt limit exists to force Washington to deal with its fiscal problems, and that any increase in the nation’s debt limit must be accompanied by spending cuts and reforms larger than the amount of the debt limit hike.
So far, both parties have been content to kick the looming debt problem down the road to the next Congress. If Boehner follows through on this, it will mark a sharp departure from “business as usual” in DC. But note that if — it’s a big one.
Our nation’s economy is stuck in large part because it is stuck with debt, the Speaker will note, and the solution to what ails our economy is not more government – it’s the American people. Pro-growth policies – stopping the tax hike that is scheduled to hit small businesses on January 1, cutting spending, and reforming the tax code – represent the road to prosperity, opportunity and lasting job creation.
Absolutely right. Let the citizens keep more of their money, and prosperity will return, because they’ll spend it. Government spending doesn’t do the same thing, because before spending it, government has to take it from the citizens, which blunts the effects.
Americans overwhelmingly reject the idea championed by the president that increasing government spending will generate economic growth. A Winston Group/New Models survey conducted earlier this year found that only 30% of Americans believe increasing government spending will generate economic growth, and 66% do not believe increasing government spending will generate economic growth. Americans also overwhelmingly believe our economy would be doing better with better policies in place.
Very bad news for the big spenders of both parties in Congress. The American people know what I said above, that government spending just doesn’t work. If they weren’t sure before, the last 3 years have proven it.
The Speaker will be clear that the U.S. House of Representatives will act before the election on legislation to stop the tax increase that is scheduled to hit American job creators on New Year’s Day 2013. He will argue that our nation’s leaders should not wait until New Year’s Eve to give American job creators the confidence that they aren’t going to get hit with a tax hike on New Year’s Day.
Good. A tax hike now would further bog down the economy. The way to recovery is the same way Reagan used — cutting taxes.
If — and I repeat, it’s a big if — Boehner follows through on these points, he’ll be solidly on the right path.