Official White House photo of President Bill Clinton
There is a way for Congressional Republicans to reach an accord with Democrats that would enable the nation to avoid falling off “the fiscal cliff” into a searing recession.
Obama Democrats argue that the President only wants to restore the top rates that reigned during the Clinton presidency, which was a prosperous time. We should say: Absolutely, let’s do it. But in order to achieve a Clinton economy, you also must enact the other Clinton policies critical to the prosperity of those years: They include:
I. A Freer Economy
The oppressive ObamaCare of that time was HillaryCare, which was never enacted. If we want to re-create the Clinton economy, then we have to repeal ObamaCare. Are Democrats willing to do that?
The federal-regulation regime was also much easier then than it is now. Will the White House become serious about genuine deregulation?
II. Clinton-era Federal Spending Levels
Federal spending as a proportion of the economy was smaller in those days. That would mean budget cuts now of around $500 billion – not spread over ten years, but right now. How likely is that?
III. A Strong and Stable Dollar
The dollar in those days was almost as good as gold – a critical factor in that time’s economic boom. Will the White House ax Ben Bernanke and his destructive monetary policies?
The Republicans should tell Mr. Obama that, if he’s truly serious about restoring Clinton-era prosperity, he has to combine Clinton tax rates with the former president’s wise management of the economy that encouraged free enterprise and a true recovery. If not, we will see a return to recession in 2013 and continue on our current path toward European-style malaise and stagnation.
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Steve Forbes is the co-author of Freedom Manifesto: Why Free Markets Are Moral And Big Government Isn’t.
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