That’s Right Nate

Thoughts from a right thinker.

How Republicans Would Save the Economy

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One of the untruths frequently repeated by Democrats is that Republicans are the party of no.   They claim that we have no ideas to improve things and instead spend all of our time trying to stop their plans with nothing of our own to offer.   We’ve been very critical of Obama’s stimulus plan for the economy, but the media has ignored our own plans for economic recovery.   Currently, one problem that small businesses are feeling right now is that banks are refusing to lend money and instead sitting on very strong balance sheets after the TARP bailout.

RNC Chairman Michael Steele was on the Today Show today and gave his proposal for the banks.   It was  such a simple idea, I’m surprised nobody else had thought of it.   With the economy suffering, this is the perfect time to cut the unemployment tax.   By doing this, business will spend less money paying for people who aren’t even working anymore and have more money to spend expanding.

Steele told Matt Lauer, “Well, I think, first off, he should recognize that banks aren’t going to lend money to people who can’t pay them back. … So there’s — there’s this whole cycle of not understanding exactly how the economy works with respect to small-business owners. Take that pressure off of them.  Let’s…let’s eliminate the capital gains tax.  let’s reduce the unemployment tax.”

The added advantage is that by eliminating unemployment benefits or at least reducing them with a massive cut to the unemployment tax, being jobless will no longer be rewarded.  This will get all of the people who could be working right now, but choose to stay at home collecting their unemployment checks, back into the workforce.   While I have no idea exactly how many people that is, I wouldn’t be surprised to see the unemployment rate cut in half.   It kind of reminds me of No Child Left Behind where schools that are falling behind get their budgets cut.   Once again, Michael Steele has the pulse of the nation.

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Written by thatsrightnate

December 14, 2009 at 10:24 pm

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