sailingaway
08-10-2011, 04:23 PM
In Iowa, will Republicans find economic policy?
http://washingtonexaminer.com/politics/2011/08/iowa-will-republicans-find-economic-policy
In part:
There are competing schools of conservative economics on the question of money printing. The Milton Friedman teaching, held by most Beltway free-market economic thinkers, is that while economic activity remains slow and prices remain steady, the Fed ought to be inflating the money supply in order to prevent economic contraction.
While liberals have a different analysis, their prescription is the same on this score: Print more money. Running on "I agree with Paul Krugman, we need inflation" is hardly a winning issue in a GOP primary.
The only Republican presidential candidate who has evinced a coherent economic policy is Rep. Ron Paul of Texas, who rejects Friedman's teachings in favor of the Austrian School of economics, grounded in the writings of F.A. Hayek and Ludwig von Mises. Austrian economics (which prescribes a gold standard) rejects money-printing as an economic cure, and in fact blames it for the boom-and-bust cycle that has been so apparent for the past 15 years.
Paul's arguments appeal more to the conservative base these days, but Friedman's hold sway among Republican elites.
Another systemic problem hurts the GOP's ability to put forth solid economic policy: For too long, Republicans have outsourced their economic policy to business lobbyists -- a group that often rejects free-market policies. The U.S. Chamber of Commerce supported TARP, stimulus and cash for clunkers, and today they're getting behind Obama's idea of an infrastructure subsidy bank. Wall Street loved TARP, of course, and rallies every time Ben Bernanke makes new money out of thin air.
So when Republicans go to the well for campaign contributions and outside support, they're palling around with guys who have more in common with Barney Frank than Ron Paul. How can you convincingly lay out an argument for free markets after bailing out Wall Street? What do your donors at Boeing think of your call to cut federal spending and subsidies?
Read more at the Washington Examiner: http://washingtonexaminer.com/politics/2011/08/iowa-will-republicans-find-economic-policy#ixzz1UfRdzU3S
http://washingtonexaminer.com/politics/2011/08/iowa-will-republicans-find-economic-policy
In part:
There are competing schools of conservative economics on the question of money printing. The Milton Friedman teaching, held by most Beltway free-market economic thinkers, is that while economic activity remains slow and prices remain steady, the Fed ought to be inflating the money supply in order to prevent economic contraction.
While liberals have a different analysis, their prescription is the same on this score: Print more money. Running on "I agree with Paul Krugman, we need inflation" is hardly a winning issue in a GOP primary.
The only Republican presidential candidate who has evinced a coherent economic policy is Rep. Ron Paul of Texas, who rejects Friedman's teachings in favor of the Austrian School of economics, grounded in the writings of F.A. Hayek and Ludwig von Mises. Austrian economics (which prescribes a gold standard) rejects money-printing as an economic cure, and in fact blames it for the boom-and-bust cycle that has been so apparent for the past 15 years.
Paul's arguments appeal more to the conservative base these days, but Friedman's hold sway among Republican elites.
Another systemic problem hurts the GOP's ability to put forth solid economic policy: For too long, Republicans have outsourced their economic policy to business lobbyists -- a group that often rejects free-market policies. The U.S. Chamber of Commerce supported TARP, stimulus and cash for clunkers, and today they're getting behind Obama's idea of an infrastructure subsidy bank. Wall Street loved TARP, of course, and rallies every time Ben Bernanke makes new money out of thin air.
So when Republicans go to the well for campaign contributions and outside support, they're palling around with guys who have more in common with Barney Frank than Ron Paul. How can you convincingly lay out an argument for free markets after bailing out Wall Street? What do your donors at Boeing think of your call to cut federal spending and subsidies?
Read more at the Washington Examiner: http://washingtonexaminer.com/politics/2011/08/iowa-will-republicans-find-economic-policy#ixzz1UfRdzU3S