After the arrival of a disappointing December jobs report, my thought on putting America back to work is simple: de-stimulate.
That’s right. Get rid of the Obama stimulus monster, including the government takeover of health care, cap-and-trade and all this nonsensical talk of creating green jobs. Get rid of the increase in marginal personal tax rates and capital-gains tax rates. Get rid of the payroll tax hike from the health care talks. Get rid of the spending that is a counterweight to growth. Get rid of it, every part of it. It’s creating so much uncertainty that even profitable businesses are afraid to hire new workers and expand.
It’s like business is on hold as it waits for the next Washington shoe to fall.
Whole piece at RCP here.
This is one of the steps, that should be coupled with an overall cut in spending and tightened monetary policy, towards recovery in unemployment and economic growth.