Slow Growth Numbers Call for Smaller Cuts
The okay-but-not-great economic numbers (1.8% economic growth) posted yesterday offer talking points for both Democrats and Republicans. But the GOP seems to have a slight upper hand with these numbers--if it plays its cards right.
Talking points for Democrats: Our policies reversed the recession that Republicans and George W. Bush caused. The less-than-stellar growth numbers--which actually aren't that bad anyway--stem from cutbacks in government spending that the Republicans have forced on us. We need another "jobs" bill now, however, to prevent a double dip recession. (Want details on how government spending is effective at creating jobs relative to private sector efforts? Let us get back to you on that.)
Talking points for Republicans: These numbers show the failure of President Obama's policies and the uncertainty that his health care and financial reform bill have caused. The deepest cuts were actually to defense spending which we weren't that crazy about making so this isn't any evidence that cutting government doesn't work to create prosperity. We need policies that will create certainty including lower taxes and real spending reductions. (Want details on how we'll reduce spending in the short run? Let us get back to you on that.)
Both of these agendas have real problems although the Democratic message seems weaker since it simply promises another dose of medicine that hasn't worked very well to date.
If Republicans want to seize the moment, they need to come up with a government cutting agenda that borrows significant details from the one they've already proposed (the Ryan budget) but is more politically palatable, realistic, makes more cuts now (and fewer later) and focuses on confronting problems of the future rather than undoing not-so-good policies of the past.