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    If You Want Economic Growth, Vote Republican, Says … Harvard Business School?


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    If You Want Economic Growth, Vote Republican, Says … Harvard Business School?

    Post  sinister_midget on Fri Sep 16, 2016 9:58 am

    If You Want Economic Growth, Vote Republican, Says … Harvard Business School?

    That's a given. It's about time they woke up and realized it.

    The latest annual report from the Harvard Business School on the state of U.S. competitiveness says political gridlock is getting in the way of strong economic growth. What it fails to mention is that Democrats are the ones blocking the pro-growth proposals the report advocates.

    The latest HBS report paints a bleak but accurate picture of the current economy -- lackluster economic and productivity growth, an incredibly slow rate of job creation, declining median household income, a dramatic slowdown in new business formation, and a growing pessimism about the future of U.S. competitiveness.

    Then it goes on to say that "the federal government has made no meaningful progress on the critical policy steps to restore U.S. competitiveness in the last decade or more."

    All true.

    But being the Harvard Business School, the authors of the report can't bring themselves to blame one party. Instead they talk vaguely of increasing political polarization and gridlock in Washington and a "flawed political system." The truth is that when it comes to blocking pro-growth policies, there is only one party to blame.

    Over the past decade, it's been Democrats -- who controlled Congress from 2006-2010 and held the presidency since 2009 -- who've prevented action on almost every one of the eight proposals the HBS says would "unlock U.S. economic growth and competitiveness."

    Don't believe it? Look at the eight-point plan itself and ask yourself which party supports or opposes each:

    • Simplify the corporate tax code and lower the statutory rate.

    • Move to a territorial tax system like all other leading nations.

    • Ease immigration of highly skilled individuals.

    • Aggressively address distortions and abuses in the international trading system.

    • Improve logistics, communications and energy infrastructure.

    • Simplify and streamline regulation.

    • Create a sustainable federal budget, including reform of entitlements.

    • Responsibly develop America's unconventional energy advantage.

    In his two terms in office, President Obama never lifted a finger to enact the kind of corporate tax reforms advocated by HBS -- which would bring U.S. tax rates in line with other industrialized nations and harmonize how we treat profits from foreign subsidiaries. Instead, he has attacked companies who've responded to the existing distortions by moving to more tax-friendly climes.
    Rather than focus on fixing the legal immigration system, Obama has pushed to open the gates to millions of illegal, unskilled immigrants.

    Not only has Obama failed to simplify and streamline regulation, he's added massively to the regulatory burdens faced by businesses -- through Dodd-Frank, ObamaCare, new labor regulations, and an out-of-control EPA.

    Far from creating a sustainable budget, Obama has doubled the national debt, vastly expanded entitlement spending, and set the country on a path toward fiscal ruin.

    And instead of leveraging the country's newfound energy advantage -- brought forth by advances in drilling technology -- Obama has tried to thwart oil and gas development at every turn.

    If Hillary Clinton is elected, the country will move still further away from the HBS's growth platform. She wants to boost corporate taxes by $470 billion over the next decade, including a disastrous new "exit tax." She wants still more regulation, higher levels of entitlement spending, and more restrictions on fossil fuel development. She and her party are reflexively opposed to free trade deals.

    Trump's economic plan, in contrast, is far closer to what the HBS envisions, even if the report's authors could never bring themselves to admit it.

    Trump wants exactly the kind of corporate tax reform the HBS report proposes and he wants to aggressively pursue domestic supplies of energy -- the latter of which the HBS describes as "a once-in-a-generation opportunity to change the nation's economic and energy trajectory."

    He has called for streamlining regulation, and while his anti-trade rhetoric is worrisome, he at least has promised to get tough on countries that cheat on trade. Where Trump falls short is on immigration and entitlements.

    The HBS is right that the U.S. economy is suffering from federal policies that impede growth and harm U.S. competitiveness. But attacking both political parties as if they share equally in the blame is unfair and unproductive.

    Oh, I see. They know backing the Democrats is a lousy idea. They just can't bring themselves to say as much.

    But at least they back the better ideas. So that support says it for them.

      Current date/time is Mon Jun 18, 2018 12:32 am