Will Mitt Romney be educable on fiscal and monetary policy? If not, I see this election as touch and go. Reprinted from my friend Dick Fox on supplysideforum.com
Newt gave Florida to Romney. By attacking Romney for being rich Newt brought home to the voters the fact that Romney was a very successful businessman and the election is totally and even more than in 1992 all about the economy, stupid! The voters looked at Romney’s record at Bain Capital and, rather than buying into Newt’s class envy attacks, they liked what they saw. Newt got a bump up in South Carolina but what Florida teaches is that the pundits were wrong about why. Newt got a bump in South Carolina because he called for a gold commission. In Florida in typical Newt style he forgot all about it and moved on to his next poorly thought out idea.
Rick Santorum has a strong theme of family values. Charles Murray’s new book demonstrates a point Thomas Sowell has been making for at least 20 years. When the white families fall prey to the same conditions that destroyed the black family American society is doomed. Murray gives us the details of the decline of the white family in America. But Santorum does not realize that the economy is the number one family values. Bad economic conditions tear families apart and the government steps in to help the destruction. Florida taught us that Santorum doesn’t get it on economics as a family value.
That brings us to Ron Paul… As I considered who would be best to call for a conference of supply side economists to develop an economic recovery plan I realized that Paul could not be that man. He rejects what Robert Mundell stands for and his rigidity to Rothbardian Austrian Economics prevents him from understanding the flexibility of Mises and Hayek on issues of banking and monetary policy through a transition phase. Ron Pau’s economics is not compatible with supply side economics because he will not open his mind to understand that today we live in a world of fiat currencies and that makes the analysis different from the time of the gold standard.
Finally, the winner, Mitt Romney. Romney is our Herbert Hoover following FDR not preceding him. Romney has told us he will instigate a currency war with China. He has told us that he believes that he sees monetary and government fiscal stimulus as the road to recovery. He understands from his business years that cost cutting will improve the bottom line, but it didn’t teach him that austerity can lead to personal hardship, economic stagnation and economic decline. Romney could learn from the austerity and tax increases that has pushed the UK into official recession. Romney was successful in business and he knows it, so he unshakably convinced that his methods will work. The real issue with Mitt Romney is will he be teachable, or will he, like Hoover, follow his errors in judgment carrying us into the abyss?
I have given up on the presidential race. I am now focused on electing representatives and senators who can pull us out of the mire.