[Guest post by DRJ]
Recently, even President Obama acknowledged the potential fiscal apocalypse caused by record deficits and called on Republicans to put up or shut up:
“Next year when I start presenting some very difficult choices to the country, I hope some of these folks who are hollering about deficits step up. Because I’m calling their bluff.”
For now, most Republicans have focused on deficits but the Wall Street Journal calls this Obama’s Tax Trap:
“Mr. Obama’s plan has been to increase spending to new, and what he hopes will be permanent, heights. Then as the public and financial markets begin to fret about deficits and debt, he’ll claim that the debt is “unsustainable” and that the only “responsible” policy is to raise taxes.”
Instead, the WSJ argues the GOP’s focus should be on growth and spending, not deficits, or they will fall into Obama’s tax trap:
“Republicans need to break out of their rhetorical preoccupation with debt and deficits, focusing their political aim instead on spending and above all on reviving economic growth. They should hold the line against all tax increases and begin to consider a menu of tax cuts to make the U.S. more competitive, especially if the economy continues to underperform.
Mr. Obama’s strategy of spending our way to prosperity clearly hasn’t worked, as the voters are coming to understand. But if the GOP policy response is merely to bemoan deficits, they will soon find themselves back at their historic stand as tax collectors for the welfare state. To avoid Mr. Obama’s tax trap, Republicans also need a growth agenda.”
Too bad Congress doesn’t have someone like Rick Santelli and his Stop Spending message. I think that argument resonates with most Americans.