Principles for Economic Revival per Hoover Institution

Inquiring minds are looking at George P. Shultz’ new article setting out policy that the country should follow to extricate itself from its current economic crisis. Shultz, a fellow at the Hoover Institution, says the priorities that should guide policymakers as they seek to restore more rapid growth are:

First, take tax increases off the table:

Higher tax rates are destructive to growth and would ratify the recent spending excesses.

Second, balance the federal budget by reducing spending:

…begin by rescinding unspent “stimulus” and Troubled Asset Relief Program (TARP) funds, ratcheting down domestic appropriations and repealing entitlement expansions, most notably the subsidies in the health care bill.

Third, modify Social Security and health care entitlements to reduce their explosive future growth.

Fourth, enact a moratorium on all new regulations for the next three years:

…regulations should be transparent and simple, pass rigorous cost-benefit tests and on market-based incentives instead of command and control.

Direct and indirect cost estimates of regulations and subsidies should be published before new regulations are put into law.

Fifth, monetary policy should be less discretionary and more rule-like. The Federal Reserve should announce and follow a monetary policy rule…

Kinda different from the Obama agenda, don’t ya’ think? I guess there really are differences in the two parties, eh?


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