Advocacy

The Foundation for Entitlement Reform: Get America Booming Again

from The Heartland Institute – by Peter Ferrara –

Today’s stagnant economy is both unnecessary and, well, un-American. The U.S. economy sustained a real rate of annual economic growth of 3.3 percent from 1945 to 1973 and 1982 to 2007, making the United States the world’s greatest power. It was only during the stagflation of 1973–82, reflecting national leaders’ deeply misguided devotion to Keynesian economics, that real growth fell to only half the long-term trend.

A new Policy Brief by Heartland Institute Senior Fellow Peter Ferrara recounts this history and explains why the U.S. economy has failed to recover from the current economic crisis: Because President Barack Obama has doubled down on the failed economic policies of the 1970s.

We still have not regained the jobs lost during the recession, instead suffering the longest period with unemployment above 8 percent since the Great Depression. Millions more people have dropped out of the workforce, with the lowest labor participation rate in more than 30 years. Median family income is down by more than $4,000 since Obama took office, the equivalent of almost a month of lost income annually. Poverty and dependency have soared to the highest totals on record.

Ferrara offers hope: As history shows, the U.S. economy has a long-overdue boom already locked within it, straining to break out. Adopting updated policies of Reaganomics would unleash that boom.

Better yet, Ferrara offers an outline of what needs to be done: (1) real tax reform consisting of lower tax rates in return for closing loopholes; (2) spending cuts achieved through real entitlement reform; (3) recreating the Reagan deregulation agenda by reining in EPA and the Department of the Interior and repealing Obamacare, Dodd-Frank, and the Community Reinvestment Act; and (4) replacing open-ended Fed monetary policy with a strict price rule referencing the most policy-sensitive commodity prices.

These policies, Ferrara says, would return the U.S. economy to its long-term economic growth path, unleashing above-normal real economic growth of 4 to 6 percent for several years until the economy returned to its long-term growth path averaging real growth of 3.3 percent per year.

“The Foundation for Entitlement Reform: Get America Booming Again” is the second in an eight-part series Ferrara is writing on entitlement reform for The Heartland Institute.

The first installment in the series, “A Winning Plan for Entitlement Reform,” was released in December 2012 and available here.

 


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BobbyD
9 years ago

The problem with “Entitlement Reform” to fix spending and the deficit is that the waste, fraud, pay backs to political supporters, duplication, over staffing, unoccupied Federal properties, campaigning paid by the federal buck, lavish vacations for the President and his family, do nothing Congressmen, give aways to the unworthy and unmotivated will continue and will expand while the people in real need will suffer critical cuts in earned support such as Social Security, Medicare, and Medicaid. Those who worked hard all of their lives and paid their required share each year to support those in need of benefits deserve the same level of support. Did someone lose the key to the locked box containing Social Security funds? No it was raided to pay for other, politically motivated initiatives. Since it is apparent that Obama Care (ACA) is going to renege on all of BHO’s promises is it too late to put those funds back in Medicare? Do we really want to punish the deserving few in order to continue to reward and thus encourage the growing, rapacious, undeserving mobs of the unentitled?

BobbyD
9 years ago

The problem with “Entitlement Reform” to fix spending and the deficit as it is now being discussed in DC is that the waste, fraud, pay backs to political supporters, duplication, over staffing, unoccupied Federal properties, campaigning paid by the federal buck, lavish vacations for the President and his family, do nothing Congressmen, give aways to the unworthy and unmotivated will continue and will expand while the people in real need will suffer critical cuts in earned support such as Social Security, Medicare, and Medicaid. Those who worked hard all of their lives and paid their required share each year to support those in need of benefits deserve the same level of support. Did someone lose the key to the locked box containing Social Security funds? No it was raided to pay for other, politically motivated initiatives. Since it is apparent that Obama Care (ACA) is going to renege on all of BHO’s promises is it too late to put those funds back in Medicare? Do we really want to punish the deserving few in order to continue to reward and thus encourage the growing, rapacious, undeserving mobs of the unentitled?

PaulE
9 years ago

“Ferrara offers hope: As history shows, the U.S. economy has a long-overdue boom already locked within it, straining to break out. Adopting updated policies of Reaganomics would unleash that boom.”

Yes, I agree that simply abandoning Obamanomics (socialist economic policies that have failed the world over numerous times) and implementing supply-side economics and pro-growth tax reform would provide a much-needed jump start of the American economy. However, such a move is nowhere in sight.

Neither Obama nor the Democrats have any intention of admitting their policies have saddled the economy with sub-standard growth prospects. If anything, they are trying to re-write history by claiming that Reagan and supply-side economics led to the our current economic problems and only Obamanomics can save us. So far, I’ve encountered a lot of economically illiterate people out there that are buying into this false narrative Obama is trying to sell. Many of these idiots are the very same people that voted to re-elect the empty suit to another four years of “transformational” economic and social programs.

ginny
9 years ago

So what exactly do you mean by entitlement reform? Does this no life term for welfare and free phones? Or does it means cutting ss?

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