Robert Reich channeling his inner FDR
Robert Reich just opined that it is possible that we are headed back to a double dip recession. He is hoping that all these negative economic signs will prompt Washington to get serious about job creation.
The only jobs I’ve known to come out of Washington were bureaucrats willing to spend more tax money and write even more confusing regulation. The obvious solution is to get rid of legislation, such as Obamacare and FrankNDodd financial deform. The one other thing to do is to drop the corporate and other tax rates immediately. Reagan had 9% growth during his first term by reducing taxes and hold regulation creation to an absolute minimum, which creates the stability companies need for job growth.
However Robert Reich completely ignores history and results to give his solution.
Several steps need to be taken right away. Exempt the first $20,000 of income from payroll taxes for two years. Lend money to cash-starved state and local governments. Initiate a new WPA for the long-term unemployed. Amend bankruptcy laws to allow homeowners to include their prime residencies in personal bankruptcy (giving them more bargaining leverage with their lenders to renegotiate mortgage loans).
Ah yes the good old FDR approach that didn’t do squat back then and didn’t help in 2009 either. When will liberals ever learn? Probably never.