Pawlenty?s 5 percent solution

[BT]

Tim Pawlenty should be praised for decisively rejecting the declinism that has infected much of the Washington and New York elite. His speech Tuesday at the University of Chicago was a robust reminder of all that once was good in America and could be again.

    We settled the west and went to the moon. We liberated billions of good people from communism, fascism, and jihadism. We?ve lit the lamp of freedom for the entire world to see. The strength of our country is our people, not our government. Americans believe our country is exceptional. And they deserve a President who does too. We can fix our economy. Our people are ready to get back to work. We just need to give them to tools to get there. And get the government out of the way.

In his call for a national goal of 5 percent GDP growth for a decade (and, presumably, between 3 and 4 percent thereafter), Pawlenty seems to be echoing JFK rather than Ronald Reagan. But both presidents recognized that deep tax cuts were critical to unleashing the private sector and reinvigorating a flaccid economy.

Is 5 percent GDP growth a realistic goal? It?s certainly a great aspirational one, but many mainstream economists would say it?s not doable. Here?s the challenge: The U.S economy hasn?t grown so fast for so long since the late 1800s. More recently, the economy expanded at a pace just shy of 6 percent from 1962-1966. And as Pawlenty mentioned in his speech, ?Between 1983 and 1987, the Reagan recovery grew at 4.9%. Between 1996 and 1999 ? under President Bill Clinton and a Republican Congress? the economy grew at more than 4.7%.?

Overall, U.S. GDP growth has averaged 3.3 percent over the past 50 years, with roughly half coming from a growing labor force (1.6 percent) and half coming from higher productivity (1.7 percent). But with America aging, annual labor force growth is expected to slow dramatically to just 0.5 percent. The McKinsey Global Institute thinks a higher retirement age and smarter immigration policy could boost that rate to 1 percent or so. But even then, productivity growth would have to increase to 2.3 percent long term just to maintain that historic growth rate.

The good news is that McKinsey thinks that?s possible, too. One move it recommends is enhancing the U.S regulatory environment. Another is reducing marginal tax rates. Both actions are in line with the Pawlenty agenda. Pawlenty?s proposal to eliminate capital gains taxes would create a de facto consumption tax, which many economist think good for growth. He would also lower the top individual tax rate to 25 percent and the top corporate rate to 15 percent. And like McKinsey, Pawlenty thinks the federal government and healthcare sectors can made be much more efficient and productive. He also wants to sunset federal regulations.

The better news is that GDP growth of, say, 3.5 percent would take a huge chunk out of America?s long-term debt problem since the government?s long-range forecast assumes growth of just 2 percent. So Pawlenty is squarely on the right track. Higher growth is key to avoiding a debt crisis, not to mention improving the American standard of living. With the right policies, America can grow a lot faster than what the pessimists in the Congressional Budget Office and center-left think tanks believe.

But is 5 percent possible, or even 4 percent? That really depends on the pace of innovation. Advances in genetics, robotics, artificial intelligence and nanotechnology could bring about another Industrial Revolution. Innovation expert and computer scientist Irving Wladawsky-Berger think the simultaneous advance of information technology and globalization and entrepreneurial capitalism worldwide is ushering in a ?golden age of innovation.? And the faster the world grows, the faster American will grow. And vice versa.

And government?s role is all about creating a fertile environment for growth and innovation through smart tax, regulation and (limited) spending policies. Pawlenty?s ?Better Deal? would do that.


http://blogs.reuters.com/james-pethokoukis/2011/06/08/pawlentys-5-percent-solution/

[sirs]

Obama's Central Planning Fail

It's not the fair tax or flat tax that most conservatives dream of, but presidential candidate Tim Pawlenty's tax plan shows that he?s serious about tax reform.

He couples tax reform and spending restraints as the keys to renewed American prosperity.

"I'm willing to tell Americans the hard truth," says Pawlenty. "And I believe Americans are ready to hear it.  But the truth about our economy isn't hard at all. Markets work. Barack Obama's central planning doesn?t....  It?s not the American way."

Pawlenty says that he likes to draw lines-in-the-sand on tough issues.

But when he opened up a major policy speech at the University of Chicago on Tuesday, calling for spending restraints and tax cuts, he didn't just draw a line for the GOP against which the Democrats will have a hard time crossing, he built a berm that can be manned by millions of conservative activists.

In contrast to the micromanaged economy of Obama and his advisors that's grasping for breath, Pawlenty addressed big picture economic issues with specific proposals that would encourage free markets to work again and put America back to work.

The would-be GOP nominee and former governor of Minnesota advocated for three tax rates for individuals:
Zero for those already not paying taxes;
ten percent for incomes up to $50,000 ($100,000 for married couples)
and twenty-five percent for incomes over $100,000.

Pawlenty also proposed to make investment income tax-free and abolish inheritance taxes, while calling for a real balanced budget.

"A balanced federal budget shouldn't be a political sound bite.  It should be the law of the land," said Pawlenty according to the WSJ.

"As one of 49 governors operating with a balanced budget requirement, I balanced 4 biennial budgets in my two terms as governor of Minnesota.  And I know the only reason our legislature ever gave me a balanced budget was because, under our constitution. they had to."

Pawlenty's not a guy who skirts controversy either to accomplish his goals. When he says he wants spending reductions, his track record shows he means it.   

In 2005, as governor, he forced the shutdown of Minnesota's government for a month over a budget impasse. And he's taken a no-compromise stand on Washington's current debt ceiling and budget issues.

"The main point is we have a country that's in deep trouble," he told the Progressive blog ThinkProgress in February while encouraging the GOP to consider shutting down the federal government.

"We've got to get back to certain principles and responsibilities and starting with getting the budget balanced and if it takes a dramatic moment or a dramatic week or a dramatic month, those kinds of line-in-the-sand moments are what we need to get politicians back up against the wall and have them make the tough decisions." 

On the presidential campaign trail, he's taken on special interests, often getting all mavericky to defend his vision of free markets and better government.

"He went to Florida to promise an overhaul of Social Security and Medicare, programs sacrosanct to the state's seniors," reports the Boston Herald. "In New York, he told Wall Street [that] a Pawlenty presidency would not bail out investors. And in Iowa he promised to phase out subsidies to corn-based ethanol, a deal breaker for many in a state that relies on those federal dollars for a way of life."

He's not afraid of standing up for the right choices, even against those whose suppport he seeks.

Pawlenty says that the US is still the most dynamic and innovative country in the world, but that top-down economic policies have stifled innovation. The economy is ready to compete and create jobs, but people are wary.     

"They've been discouraged and weighed down," he says.

To get the economy moving the government has to remove artificial restraints and let citizens go back to doing what they do best. 

"The recession may have changed our economy," says Pawlenty. "But it didn't change our character."

Imagine getting back to a government that recognizes the worth of individual character where the bailout out everyone gets is an equal chance.

Tim Pawlenty already has.  

[Xavier_Onassis]

Pawlenty says that the US is still the most dynamic and innovative country in the world, but that top-down economic policies have stifled innovation. The economy is ready to compete and create jobs, but people are wary.     

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What the Hell does this mean? That people are sitting on large sums of money they want to spend on innovative products, but waiting for another president to come to power to actually go to the store and buy something?

Companies build the most innovative products they can regardless of the government, because that is how they get customers to buy their products.

The economy is lethargic because companies are sitting on piles of cash and prefer to simply work those they have already hired harder, rather than hiring more people. Innovation is being used to increase productivity, and the gains are NOT being passed on to those actually making the products and performing the services.

[Kramer]

The economy is lethargic because companies are sitting on piles of cash and prefer to simply work those they have already hired harder, rather than hiring more people. Innovation is being used to increase productivity, and the gains are NOT being passed on to those actually making the products and performing the services.

Clearly when it comes to private sector business understanding you are a retard. Businesses want to make the most money they can and they react and act to the economic atmosphere that exists. Their actions are what they should be for the economic trends in this country and world right now.

Typically people like you that have never had to produce anything can't grasp or understand sound economic logic. It's Greek to you! It isn't your fault that you are ill-equipped and lack experience required to know about Capitalism but liberals like you have brain damage and don't know what it means to roll up your sleeves and hit it hard.

Go open up a lemonade stand and learn a few things about running a business for profit. You know, a business that does not get donations or government assistance. A business that has to make it on it's own merit without government help. Try it and when you open up that lemonade stand and the city comes down on you for permits, licenses, etc. and when the state tells you to get a sales tax number and the feds tell you to get a federal tax ID then you might learn about red tape and all the bullshit that businesses have to jump through. Being a Spanish teacher isn't real world exposure and certainly if we all did what you do then the world would collapse. The only good you do is teach people how to communicate with their gardener! I can do that with my finger.

[Kramer]

The economy is lethargic because companies are sitting on piles of cash and prefer to simply work those they have already hired harder, rather than hiring more people. Innovation is being used to increase productivity, and the gains are NOT being passed on to those actually making the products and performing the services.

Clearly when it comes to private sector business understanding you are a retard. Businesses want to make the most money they can and they react and act to the economic atmosphere that exists. Their actions are what they should be for the economic trends in this country and world right now.

Typically people like you that have never had to produce anything can't grasp or understand sound economic logic. It's Greek to you! It isn't your fault that you are ill-equipped and lack experience required to know about Capitalism but liberals like you have brain damage and don't know what it means to roll up your sleeves and hit it hard.

Go open up a lemonade stand and learn a few things about running a business for profit. You know, a business that does not get donations or government assistance. A business that has to make it on it's own merit without government help. Try it and when you open up that lemonade stand and the city comes down on you for permits, licenses, etc. and when the state tells you to get a sales tax number and the feds tell you to get a federal tax ID then you might learn about red tape and all the bullshit that businesses have to jump through. Being a Spanish teacher isn't real world exposure and certainly if we all did what you do then the world would collapse. The only good you do is teach people how to communicate with their gardener! I can do that with my finger.

Kids Lemonade Stand At U.S. Open Fined $500 And Shut Down By Montgomery County

BETHESDA, Md (WUSA) You can make a
fortune selling parking spots outside the US
Open, but don't even dream of setting up a
lemonade stand.

A county inspector ordered the Marriott
and Augustine kids to shut down the stand
they set up on Persimmon Tree Rd, right
next to Congressional. And after they
allegedly ignored a couple of warnings, the
inspector fined their parents $500.

"This gentleman from the county is now
telling us because we don't have a vendors
license, the kids won't be allowed to sell
their lemonade," Carrie Marriott told us,
her voice trembling.

The kids can't seem to understand it. "I
don't agree, I think the county is
wrong." "We're sending the money to
charity."

Jennifer Hughes, the director of permitting
for the county, says it's technically illegal to
run even the smallest lemonade stand in
the county, but inspectors usually don't go
looking for them. She said this one was
unusually large. Hughes also says they've
warned all kinds of other vendors they
couldn't operate near the US Open because
of concerns about traffic and safety.

But that did little to console Carrie Marriott.
"Does every kid who sells lemonade now
have to register with the county?" she asked
the inspector.
 
"Cute little kids making five or ten dollars
is a little bit different than making
hundreds. You've got coolers and coolers
here," the inspector responded. "To raise
money for pediatric cancer," Marriott
replied.

What's funny is that the county has given
scores of other neighbors permits to let
golf fans park on their front lawns. The
permits cost almost $300, but prices per 
car run as much as $60 a day. And some
neighbors are reportedly raking in tens of
thousands of dollars.

"I'm a little upset with the rip off that's
going on," said Ron Simpson, who was
getting ready to pay $50. One cop says a
neighbor told him he'd made enough
charging for parking at big golf events at
Congressional that it had paid one of his
kid's collegetuition.

Carrie Marriott is having a hard time
reconciling the two different perspectives
on entrepreneurship at the US Open. "The 
message to kids is, there's no American
dream."

http://www.wusa9.com/news/article/155167/158/County-Shuts-Down-Kids-Lemonade-Stand-500-Fine

[Plane]

The economy is lethargic because companies are sitting on piles of cash ........

This does sound a bit unlikely.

[Kramer]

The economy is lethargic because companies are sitting on piles of cash ........

This does sound a bit unlikely.

always consider the source!

[Christians4LessGvt]

The economy is lethargic because companies are sitting on piles of cash
and prefer to simply work those they have already hired harder,
rather than hiring more people.

Are you insane?
Do you live in a cave?
Have you not seen office buildings that were once near full....now vacant?
Drive around some time and take a look at office buildings and shopping centers
Lots of companies have already gone under.
We are not hiring people because the company business is down 25-30%.
This isnt brain surgery
less business = less workers
Companies dont hire people when times are slow....
that would be stupid and harmful to the workers still working.

[Kramer]

The economy is lethargic because companies are sitting on piles of cash
and prefer to simply work those they have already hired harder,
rather than hiring more people.

Are you insane?
Do you live in a cave?
Have you not seen office buildings that were once near full....now vacant?
Drive around some time and take a look at office buildings and shopping centers
Lots of companies have already gone under.
We are not hiring people because the company business is down 25-30%.
This isnt brain surgery
less business = less workers
Companies dont hire people when times are slow....
that would be stupid and harmful to the workers still working.

no no no you are sitting on your cash, it's your fault the economy sucks. You are just trying to harm Obama, you racist!

[Plane]

The economy is lethargic because companies are sitting on piles of cash ........

This does sound a bit unlikely.

always consider the source!

I don't.

Wisdom is wise even it is the only wise thing its sorce ever made.

I try to give each idea its own trial.

[Kramer]

The economy is lethargic because companies are sitting on piles of cash ........

This does sound a bit unlikely.

always consider the source!

I don't.

Wisdom is wise even it is the only wise thing its sorce ever made.

I try to give each idea its own trial.

Including the Final Solution?

As soon as Hitler floated the idea some questioned it, others liked it, others were open to it, and yet others considered the source and passed on it.

[Plane]

  I hope that I would have seen the problem with Hitlers programs and of course I realise this means I hope I would have been in opposition to Hitler , a poor way to preserve ones health once Hitler acheived power.

   Hitler was cheerfull and impressive , people got used to agreeing with him, then they got afraid to stand against him, his genius was never in question and his every statement was praised for its wisdom , not only by those who thought him wise but alsomore and more by tjhose who thought it unhealty to oppose him.

    As Hitler rose he lost something that any leader needs , someone handy who could tell him no.


       I have been wrong myself , I know what that is like, if you submit my ideas to examination and trial , you do for me a favor.

        Even though I am so seldom wrong, and XO is so seldom right, at any time this could be reversed on any topic.

          If Hitler had just a bit more humility he might have been able to think outside his box and make friends with the Jews , if he had we mihgt all be speaking German now.