Finally, we also need to do something about that part of the equation that everybody so carefully ignores: economic growth. It doesn’t happen by divine intervention, although prayer may be all we have left if the potential for spending and taxing isn’t suppressed.
The deadly pursuit of ever-higher spending, tax rates and debt is driven, of course, by the persistent need to fuel an expanding government with the money that is required to run it. The recession has dealt a hammer blow to that system by producing less revenue for the government even as the big-government Democrats sought to deliver more services, usually for free. The long-term effect of that pact is hellish, but the 112th Congress needn’t agree to do more of the same, with the same result.
Here’s what’s in store if we don’t. The Congressional Budget Office predicts that today’s recession will actually reduce the gross domestic product in 2018 from $22.2 trillion down to $20.2 trillion, slicing federal government revenues by $458 billion. But if we can find ways to grow the U.S. economy just two-tenths of a percent in the coming five years and just a tenth of a percent in the three years after that, GDP would rebound and so would federal revenues. No tax hikes necessary, thank you.
The fact is, America needs growth even more desperately than Washington. Since World War II ended, the average recovery from recession has lasted five quarters or less. This one, if you even count that a recovery is under way, seems to be on track for a 10-quarter run.
We believe that achieving growth demands a full-on assault by Congress. Here’s a sampler of ideas that deserve serious consideration from policymakers in the 112th Congress and throughout the administration: a freeze on spending; the rapid, systematic reversal of the job-killing rules spewing out of the Obama administration’s Environmental Protection Agency; the circumscribing of trial lawyers’ ability to litigate against anything that moves; and a carefully crafted round of financial reform that replaces the administration’s current policy of reactionary discouragement for all lending with one that encourages quality lending. Those are only for starters, but they add up to a very strong start.
Want to put things right in America again? Get control of government spending, balance the federal budget and restart the economic growth.
Grover Norquist is president of Americans for Tax Reform, and Rep. Joe Barton (R-Texas) is ranking member of the Energy and Commerce Committee.
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