For a man who seems to have the Republican presidential nomination sewn up, former Massachusetts Gov. Mitt Romney’s decision to attack the policies of his only rival who has not dropped out of the race, Rep. Ron Paul (R-Texas), is curious indeed. Paul has proposed slashing $1 trillion from the federal deficit in his first year in office and balancing the budget in three years. He has argued that much of this deficit reduction could be achieved by ending America’s overseas military operations, closing foreign bases, and bringing the troops home.(htChrisKozloski)
Romney, however, will have none of it, reports the Washington Times.
“My job is to get America back on track to have a balanced budget,” he told attendees at a suburban Cleveland town hall event Monday. “Now I’m not going to cut $1 trillion in the first year,” he added — a clear jab at Paul’s plan.
“Why not, someone in the crowd apparently asked,” according to the Times.
“The reason,” Romney explained, “is taking a trillion dollars out of a $15 trillion economy would cause our economy to shrink [and] would put a lot of people out of work.”
This, of course, is pure Keynesian economics — the idea that the economy cannot grow without massive government spending. History proves otherwise: The economy stagnated while the government spent more and more during the Great Depression, but it took off when federal spending plummeted after World War II.
For all his vaunted business acumen, Romney has apparently forgotten that the government cannot spend $1 trillion without first taking it from the private sector. Therefore, if the government fails to spend that money, it is not being taken out of the economy; it is merely being left in the hands of its rightful owners. As a result, it gets put to use meeting people’s needs and improving their standard of living. When the government takes it, however, it is used to meet politicians’ desires for reelection by redistributing wealth and rewarding political cronies. One trillion dollars left in the private sector will do infinitely more good than that same cash will do when confiscated by government.
Thursday, May 10, 2012
Romney Must Be Hearing More Ron Paul Footsteps
Michael Tennant explains: