Many excellent points were made in the debate that exposed each candidate’s plans and belief systems. The economy and more specifically housing has a chance for recovery with the free enterprise plan of Romney, but is doomed to stagnation as the best possible result with Obama’s government centric, tax and spend (Obama conveniently refers to as ‘investments’) plan.
President Obama said he cut taxes for 98% of the people, and cut small business taxes eighteen times. Just that one statement shows why America is in such economic trouble. Extending tax rates is not a tax cut, and small business owners know the difference between a tax cut and a tax credit. The president obviously or obliviously does not know the difference.
Regardless the president’s claims, whatever his plan was and is, it hasn’t worked and it can’t work in a free enterprise system. Obama’s plan is better suited for a European socialist welfare state.
Romney on the other hand has it exactly correct. A growth economy, spurred by lower tax rates, will increase jobs and government revenue.
History proves both candidates correct. Obama has reverted back to the days of FDR that had an extended period of government growth and record unemployment resulting from their belief government spending was the solution to a depressed private sector. Neither realized, or realizes it is big government that depresses the private sector exacerbating the downturns in the 1930’s and today.
A free enterprise plan that relieves businesses from unnecessary regulatory burdens, lowers business tax burdens, and individual tax burdens has led to recovery through job growth every time in our history.
Coolidge followed by the Roaring 20’s, JFK and the prosperous 60’s, Reagan’s miraculous 80’s recovery, the commercial boom following Clinton’s capital gain tax cuts in the 90’s, and George W’s 2003 tax cuts revitalized a nation reeling from the Dotcom bust and 9-11 attacks resulting in 4.4% unemployment.
However the most remarkable recovery was during Harding’s administration. Old Warren G. was begged for action when the economy was tanking and was slipping fast into recession. What did the old Buckeye do to stop the slide? Nothing. Within a year the economy recovered.
Historically the economy naturally recovers under its own volition. Any progress today toward recovery is due to those natural recuperative powers in spite of Obama, not due to Obama.
President Obama believes it was the Bush tax cuts and deregulation that caused the financial meltdown when in fact it was government regulation, social engineering, manipulation of mortgage lending standards that led to the meltdown triggered by the housing bubble bursting.
When you misdiagnose the cause of a disease you prescribe the wrong medicine. Romney clearly pointed out that Dodd Frank is the wrong prescription. “Try getting a mortgage today” Romney said, “The punishment for making a bad loan has caused lenders to stop making loans.”
More evidence Obama and the Democratic Party that passed this tragically flawed anchor placing a drag on the housing market, don’t understand free enterprise. That is not the lot of the central planner. Their lot is the growth of government not growth of the private sector.
Romney rightly and correctly schooled Obama on the results of his big government solutions; record unemployment with 43 straight months over 8%, the 47 million on food stamps, and the worst start up rate for new small businesses in 30 years. It is not a coincidence that we have the fewest jobs in America in 31 years.
Without robust job growth the housing market cannot have a robust recovery.
History has the roadmap. It will be up to voters which road they will choose. Obama’s big government, tax and spend as the path? Or Romney’s proposed return to a free enterprise system with individuals pursuing their dreams unencumbered by central planner’s dictates, and an Imperial President’s taxes as the path?
For those searching for the correct choice of candidate, they only need look at the answers each candidate gave when asked what they believed to be the role of government. They would have their answer.
Obama talked about Eisenhower and the interstate highway system and Lincoln and the Transcontinental Railroad.
Romney pointed over his shoulder to the wall behind him displaying the Declaration of Independence and The Constitution as defining the role of government.
The choice is between the wisdom of our founders written in the longest standing Constitution in world history, and the principles contained in The Declaration of Independence spelling out man’s unalienable rights granted by the Creator…..or choosing the manmade big government leviathan and a train wreck.
The opinions expressed here are solely those of Fritz Pfister or identified sources, and not necessarily those of RE/MAX Professionals of Springfield or RE/MAX International.