Best Line So Far From A Nevada Blog: “Romney doesn’t have an economic plan. He’s got a speech for a chamber of commerce breakfast.” Nailed. It.
The concept could be extended to incorporate the notion that the Romney “plan” as currently articulated IS the Chamber of Commerce List For Santa. Here’s their legislative goal for financial regulation: “Engage regulators to ensure that rules and proposals facilitate capital formation and market efficiency. Top priorities include derivatives, consumer protection, executive compensation, and corporate governance.” What’s missing here?
Investment. The Chamber wants the facilitation of capital formation, and it wants “market efficiency,” but conspicuously absent from the sentence is how the financial market and the capital accumulated therein should invest in America. We’ve seen what happens when capital accumulates within the financial markets — The Wall Street Casino. Heaven Knows, Nevada’s experienced a housing bubble and consequent economic collapse caused by the avaricious appetite in the investment sector for mortgages to bundle, slice, dice, and use for derivative fodder.
The crucial problem for the Romney campaign is how to sugar coat the obvious failure of Trickle Down economics.
The Romney Plan relies on the hoary canard that cutting taxes for wealthy Americans will automatically create economic growth.
“Romney’s proposal to give every American a tax cut is a giveaway to the rich that is four-times larger than the Bush tax cuts. Half the benefit would go to the richest five percent of Americans, and each member of the top 0.1 percent would get at least a $264,000 cut. Romney says he will balance the cuts with the closure of tax loopholes, but he can’t name which ones he’d close and even if he did, the plan wouldn’t generate enough revenue to offset revenue lost to tax reductions. His corporate tax plan, meanwhile, results in more than $1 trillion in tax cuts.” [TP]
Arithmetic. The Romney camp sputters that the Democrats aren’t citing more recent variations and explanations offered by their campaign. However, if there are not specifics forthcoming then what else are people trying to evaluate the efficacy of the plan supposed to do — especially when the “plan” changes at every whistles-stop and television interview?
One recurring theme from the Romney campaign says, the Governor is just setting forth a “vision” and he and the Congress will work out the details. Lovely, but anyone can spout generalities about “freedom,” “prosperity,” and “economic growth,” what prevents visions from become hallucinations and nightmares are details — preferably ones grounded in economic realities.
This graphic demonstrates something the Romney campaign would rather not discuss:
The point of the illustration is clear, even if the statistical references may be baffling to some, THERE IS NO CORRELATION BETWEEN LOW TAX RATES AND ECONOMIC GROWTH. [Original Study CRS pdf]
Back to that Chamber of Commerce breakfast program. What Governor Romney is trying to sell is the idea that Wall Street, left to its own devices, will invest in the American creation of more goods and services, even though it can be demonstrated mathematically that the lower marginal tax rates and lower capital gains taxes DO NOT correlate to economic growth.
Or, perhaps more simply, Governor Romney would have us believe that he has a economic plan which fails both arithmetically and mathematically — but he should get our votes anyway.
How many among us would purchase a used car in order to get to work, knowing full well it doesn’t run now — and in fact — it never has run as advertised?