I want to take Republicans seriously, but they do make it hard. The moment I say something kind about Mitt Romney (“He is in many ways a capable and effective candidate”) he criticises Obama for throwing Israel under the bus by uttering the phrase “1967 borders” in the course of reaffirming long-standing US policy. That learned me. Now Tim Pawlenty soars to far greater heights of nonsense with his proposals on the economy.
Let’s start with a big, positive goal. Let’s grow the economy by 5%, instead of the anemic 2% currently envisioned. Such a national economic growth target will set our sights on a positive future. And inspire the actions needed to reach it. By the way, 5% growth is not some pie-in-the-sky number. We’ve done it before. And with the right policies, we can do it again.
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%. In each case millions of new jobs were created, incomes rose and unemployment fell to historic lows. The same can happen again.
Growing at 5% a year, rather than the current level of 1.8%, would net us millions of new jobs. Trillions of dollars in new wealth. Put us on a path to saving our entitlement programs. And balance the federal budget…
5% economic growth over 10 years would generate 3.8 trillion dollars in new tax revenues.