Reviving Neoconomics

The Bush administration is in the process of refreshing its ranks with new – or almost new – faces. Good idea, as competent implementation and effective communication have not been its strong points. But it will also have to refresh its policies: what worked in 2000 won’t necessarily work for compassionate conservatives in 2006.

There are several areas where new thinking is needed, as I point out in the latest Weekly Standard. The benefit of tax cuts must be shifted from high-earners to middle income workers by lowering the payroll tax, which is regressive as it is capped at around $90,000. Trade policy must be adjusted to relieve the plight of the displaced, so as to reduce opposition to free trade. Competition policy must not be weakened by the administration’s projected review of the tactics in which dominant firms are permitted to engage. Immigration policies that secure the borders and provide a path to regularisation of now-illegal immigrants must go hand-in-hand. The Republicans face a serious challenge for control of congress in 2006, and if they do not meet it, and the Democrats take control of the House of Representatives, impeachment proceedings are likely.

Comments

[Frank Schnittger]

Many thanks for publishing my comment on your last piece. It was posted on 17 April and published on 3 May - which perhaps takes away from the interactive nature of blogs - but better late than never.

Your definition of new ideas for neo economics I find interesting. Apparently the really innovative thing is to move from tax cuts for the wealthy to tax cuts for middle income workers. Presumably tax cuts for the lower paid would constitute socialism.

The "displaced" are mentioned but only in the context of adjusting trade policy to reduce their opposition to the Great God of free trade. I know tax is for "the little people" but why do they have to be so demanding?

[Beauty]

I do not understand your "Immigration policies that secure the borders and provide a path to regularisation of now-illegal immigrants must go hand-in-hand." comment. Would you be kind enough to open this up further. Q: why are there so few comments on your blogs?