TJP

Risky Game: Obstructing Economic Recovery

Byron A. Ellis – February 05, 2009

Some Republicans believe that a Republican victory in 2010 is contingent on obstructing job creating under the Obama administration. For instance, Russ Limbaugh and former Ohio Secretary of State Ken Blackwell argued that job creation would electorally benefit the Democrats. Thus, they appear willing to sacrifice the income of Americans and the rest of the world for their own selfish motives.

Hopefully, there are smarter politicians in the Republican party that are willing to put forward competitive alternative and collaborate with the Democrats to increase the productive capacity of the United States and the rest of the world.

Restoring the economy requires, relatively low energy prices, stability in the housing market, restoration of manufacturing capability, as well as technological progress, in the United States.

Keeping energy prices relative low could be achieved by constraining military adventures in the Middle East. Fixing home mortgage rate at 4% for 18 months would increase housing refinancing as well as the purchase of new homes and lead to housing market stabilization; in addition, refinancing would increase homeowners’ disposable income.

Restoring manufacturing, in the short run, does not require complex production facilities or technologies. Rather, it requires a blend of planned and unplanned economy. For instance, some of the goods currently produced abroad could be produced in economically depressed areas and used as a feeder for entry-level jobs. A planned economy could include the manufacturing and assemble of tee shirts, sneakers, transistor radios, televisions, and so on.

Improving the educational system, particularly in rural areas and central cities, as well as lowering college tuition, could lead to technological progress and a reduction in the prison population.

Entry level manufacturing jobs could provide employees with basic healthcare and reasonable wages. Moreover, revitalizing manufacturing in rural areas and central cities would spur the growth of supporting service industries, such as restaurants, grocery stores, gas stations, and more. As a result, more job creation would occur.

Thus, the Republicans should focus on their core philosophy of building robust commerce districts throughout the United States, with emphasis of creating jobs in depressed communities.

Republicans cannot afford to adhere to the bankrupt philosophy of Limbaugh or the notion put forward by Steele that there is nothing wrong with the Republican Party. If there were nothing wrong with the Republican Party, the Democrats would not have won the election.

The economic crisis is a result of the United States loosing income, as a result of military outlays, high cost of energy, and an imbalance in competitive productive capacity.

The attribution of the crisis to housing foreclosures is a red herring that prevented the Bush administration from solving the crisis that it created.

Republicans cannot afford to be perceived by the electorate as uncooperative, particularly since a lower energy price is already stimulating the economy. Hence, the best Republican bet is to cash in on the ongoing recovery.

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