President Obama graciously pushed the Presidential race into Mitt Romney’s hands the other day with his same-sex marriage push that catapulted social conservative independents into Romney’s camp.
There is another issue out there that will further solidify the “I only care about the economy” moderates and probably even guarantee a unification of the Ron Paul supporters as members of the Romney 2012 coalition.
The issue out there which makes great political AND policy sense is to end the notion of “too big to fail” by identifying those institutions that are too big to fail and by breaking them up.
1) While I am generally a fond believer in lower regulations, when regulations allow a company to become too big to fail then those regulations put our country on the hook for the nastiness of something like TARP. While I was against TARP, I do understand that there is a point in time when as the leader of the country you become concerned about the unknown. This is what pushed Bush and many other Republicans over the edge.
2) Part of what is good in America is the fact that some businesses DO fail and so we want it to be safe for the country to make all business “Small Enough To Fail.” No business should hold the government hostage and moving forward, if we want a smaller government then we need a structure that doesn’t REQUIRE government to step in and save business from itself.
3) Romney does not need to DEMONIZE the banks in doing this. He can go out and say that banks have had to become this large in order to compete because of the flawed government setup. However, we can’t allow them to put themselves and the country into such a state.
4) Breaking up the bigger companies has in the past always lead to more competition and job growth (see the ATT breakup for details)
1) TARP was the #2 reason behind Obamacare that is cited as the beginning of the Tea Party movement.
2) Many moderates who are dissatisfied with government are against our government helping big business. With this move, Romney agrees with them and moves our country towards more economic stability.
3) Romney should ask the banks to voluntarily make these changes with the promise that he will give them up to two years to do this on their own or he will force them to be broken up. By asking them to make the change voluntarily, he allows them to win at the bank (by making their best deal on their terms) and he allows them to win a public relations battle by being the good guys.
4) TARP is one of Ron Paul’s big issues and so by doing this, he helps diffuse Paul’s concerns and he helps bring some of the Ron Paul people into the fold.