Steps to save the economy
January 7, 2009 | By Nathaniel Ward
The government must lower marginal tax rates and streamline regulation in order to expedite long-term economic recovery, Heritage Foundation Vice President Stuart Butler writes in The Washington Times.
"The people who will get us out of [the recession] are Americans with vision who will invest in production and jobs if they anticipate a decent long-term return," Butler writes. In other words, the American people, and not government, are the solution to the economic crisis.
To help entrepreneurs, businessmen and workers strengthen the economy, he suggests that Congress enact a three-part reform program.
» Read Butler's recommendations on MyHeritage.org
Three strikes against a spending 'stimulus'
This week, The Heritage Foundation began collaborating with Sean Hannity and Rush Limbaugh to spread our conservative message to new audiences. The hosts are directing their listeners to a new Heritage website, AskHeritage.org, which features key facts on today's most important issues.
Right now, Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid are clamoring for a massive economic spending "stimulus." But Congress should shift course because government spending has not in the past, and will not now, solve economic recession. As the "stimulus' proposal stands, it strikes out on three counts:
1) The private sector—not public spending—drives growth. Economic growth comes by individuals and entrepreneurs operating in free markets, not by Washington spending and regulations. Massive spending hikes in the 1930s, 1960s, and 1970s all failed to increase economic growth rates. (More)
2) Giving money to states does not increase growth. Increasing federal borrowing to keep state taxes from rising is like running up a Visa card balance to keep the Mastercard balance from rising. State taxpayers are also federal taxpayers, so those being bailed out will still have to bear the costs in the end. (More)
3) Highway spending does not create jobs. It merely transfers jobs and income from one part of the economy to another. As Heritage Foundation expert Ronald Utt has explained, "The only way that $1 billion of new highway spending can create 47,576 new jobs is if the $1 billion appears out of nowhere as if it were manna from heaven." (More)
» Find out more about this and other issues on AskHeritage.org
Heritage fights liberal spin
To counter misinformation and distortions about the Left's economic "stimulus" proposal, The Heritage Foundation has launched a new Rapid Response web page.
Targeted at policymakers and the media, the new site is "a one-stop place on our website with all of our work on the economic stimulus," Heritage's Rob Bluey explains.
This page, which compiles all Heritage research papers, commentaries, blog posts and videos on this issue, will serve as a model for future Rapid Response efforts. Heritage plans to deploy other rapid response pages as policy battles develop throughout 2009.
Magazine ranks Heritage as influential
Foreign Policy Magazine named The Heritage Foundation among the top think tanks in the world in their latest Think Tank Index. Ranked as one of the two think tanks with the most impact on public policy debates, Heritage is said to have an "obsession with the latest policy issues, an effective marketing strategy, and proximity to the seat of power (it is steps away from the U.S. Congress)," giving us "an influential edge."
In other news
- "Potentially we've got trillion dollar deficits for years to come," President-elect Obama warned. In fiscal 2008, the government spent $455 billion more than it collected in revenues. The President-elect just asked Congress for a $775 billion "stimulus" package on top of other spending programs, which could drive the 2009 deficit to more than $1 trillion.
- The Senate yesterday refused to seat Roland Burris at the opening of 111th Congress, though indications are that they will relent today. Burris was appointed to fill the vacant Senate seat by Illinois Gov. Rod Blagojevich, who has been indicted for attempting to sell the position.
- Britain's socialized National Health Service has failed its patients once again. "The number of hospital patients killed by mistakes has risen by 60 per cent in two years," the Telegraph reports, citing government data.
- Citgo, the American subsidiary of Venezuela's state-owned oil firm, has suspended its giveaway of heating oil to low-income Americans.
- India's prime minister accused Pakistan of using terrorism as a policy tool and supporting the recent Mumbai attacks. The prime minister's accusation dampens international hopes of cooperation between the two countries.
Coming up at Heritage
To attend these or any other events at Heritage please RSVP at Heritage's website. Or you can view these events live online. All times are Eastern.
- On Tuesday, January 13 at noon, Greg Foster, author of The Contested Public Square: The Crisis of Christianity and Politics, will discuss moral law and the American Founding.
- On Wednesday, January 14 at noon, a panel of experts will discuss the shifting dynamics of market economies between the U.S., Saudi Arabia and China.
Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation. David Talbot contributed to this report.
