Saturday, August 2, 2014

Kudlow: GOP Growth Plan?

Larry Kudlow asks why his party is suing the President rather than pushing an economic growth plan on National Review.

Businesses created over 200,000 new jobs for the sixth straight month. Second-quarter GDP rebounded by 4 percent from the winter-weather doldrums. And the ISM manufacturing report exceeded all expectations, with big gains in new orders and employment.

So on the surface the economy is looking better. And as a result, the Federal Reserve is on the cusp of a new and less-stimulative policy cycle — which is a big reason why stocks sold off this week. A lot of investors are wondering what happens when the Fed takes its foot off the accelerator. Will burdensome tax and regulatory policies prevent any sort of economic breakout?

But let me throw in another uncertainty: politics. What is the Republican response to all this? Yes, the GOP is favored to win the Senate. But I wouldn’t be so confident. Polling shows many key races are up for grabs. The numbers are close.

And here’s what I see as a big part of the problem: Instead of putting forth a clear growth message — like a new Contract with America — congressional Republicans this week voted for a lawsuit challenging President Obama’s abuse of executive power.

Now, suing the president is different from impeaching the president. But is it so different in the public’s eye? And don’t most people think this lawsuit will go nowhere? And isn’t this just a big distraction from key issues, like the economy, tax reform, regulatory rollbacks, immigration reform, and rewriting Obamacare? In other words, is the GOP sending voters a clear message about what it will do if it captures the Senate and House?

I'm afraid so, Larry. When one of the GOP's primary media apologists is asking what gives, you know the party has gone around the bend.

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