Why Republicans Failed
- Posted by Jeff Carter
- on December 21st, 2012
Speaker Boehner is getting brickbats from liberals for not being able to get a vote on Plan B. Did it matter to them? There wasn’t one plan the House would have passed that the Democrats would have approved of. Not one, unless it was more spending and higher taxes.
However, this whole negotiation leads to a broader point. The Democrats don’t understand how Boehner couldn’t get things through his caucus because Democrats operate differently. They are a centrally planned bureaucracy. It’s top down, monolithic decision making. The head speaks and the party machine enforces discipline so everyone follows the same line.
That works great for winning elections, winning policy debates in the liberal press, but it’s not very good for coming up with imaginative public policy for constituents.
On the other hand, the Republicans currently look like they are in disarray. They are. That’s good. The don’t have a centrally planned caucus. It’s more like herding cats. Different groups form to come up with different ideas. There are some core principles that Republicans flock to, like low taxes and a strong defense. But when it comes to small, limited government and other ideas there is no monolithic force of nature.
21 Republicans didn’t vote for the plan that was passed. Why? Because it didn’t go far enough. They wanted even more budget cutting. You might call them fringe, or whatever-but I think they are starting to gain strength in the electorate-and why they are being demonized in the press.
The medial and liberals love Republicans when they are Bob Michael Republicans. Fight a little, compromise on spending, keep a few goodies for their home states and just smile and get a long. They hate Republicans when they are like Reagan or Gingrich, or Speaker Boehner today.
Senator Rand Paul may have had the best idea. Pass a plan. It should include massive cuts in spending across the board, along with cutting deductions and keeping marginal rates the same-or lower than they currently are. Pass it knowing it won’t get anywhere. Then, let the Democrats offer up their package of higher total spending and significantly higher taxes. Vote present, just like our President did when he was in the Illinois legislature.
Higher spending and higher taxes won’t do anything to correct or change the path we are on. Neither will continuing current Fed policy of monetizing the debt. We will go over the cliff, and won’t be able to climb back up it. I hope they don’t pass a fix for AMT. The Democrats will own it and maybe, just maybe Americans will realize through their collectively poor experiences with big government that in order to change, we really need to change our course drastically.
While a monolithic centrally planned bureaucracy seems like a convenient way to make decisions, I prefer one that replicates a fragmented market. Fragmented markets work better in the long run.
Thanks for the link Glenn Reynolds at Instapundit. tip of the hat to Doug Ross.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
-
Jeffrey Carter is an angel investor and independent trader. He specializes in turning concepts into profits. He co-founded Hyde Park Angels one of the most active angel groups in the United States in April of 2007. He previously served on the Chicago Mercantile Exchange Board of Directors. He has done market commentary for (More...) -
Archives
Tags Cloud
ACC Anti-Semitism Barack Obama presidential campaign 2008 Barry Mills Big Food British Association for Counselling and Psychotherapy C Caterpillar Chicago White Sox Chris Duhon Currencies Dark Pools debt/GDP ratio Decision making demographics Donna Boggs Equities European Socialists FX Trading Gay Marriage Government budget deficit High Frequency Trading humor Income gap Infectious Diseases Joe Biden Joey Heatherton Jon Corzine Knowledge economy LINKS Market Drop Mayor Emaunel Party leaders of the United States Senate Pat Quinn PE Private Equity Quincy M.E Rate of return Robert Frost Steve Jobs stock market Texas Tuskegee Airman United States Air Force Thunderbirds W Flag-
BlogRoll
-
Abnormal Returns
All Tuition
America 3.0
American Thinker
Andy Narayanan
Arnold Waldstein
AVC
Becker Posner Blog
Ben Horowitz Blog
Better Markets
Betting the Business
Black Line Review
BloombergTV
Both Sides of the Table
Brad Feld
Business Insider
Business News Network
Carpe Diem
CBOE
CFTC
Chicago Booth Graduate School of Business
Chicago Boyz
CityWide SuperSlow
CME Group
CNBC
CNNMoney
Cooler By The Lake
Counterpoint
Daily Economic Release Calendar
Doug Ross @ Journal
Economics of a POW Camp
Fama-French Forum
Farmgate
Fault Lines
Foundation for Families
Fox Business
Freakonomics
Garden and Gun
George Stigler Institute
Good Beer Hunting
Hayek Institute
Howard Lindzon
Huffington Post
Hyde Park Angels
ICE
Illinois College of Business
Informed Trades
Instapundit.com
Intrade
James Altucher
John Taylor's Blog
Jump Innovation
Junto Institute
Legal Issues in Angel Funding
Macroblog-Federal Reserve Bank of Atlanta
Marginal Revolution
Microbrews in Chicago
Mike And G
Milton Friedman Institute
NakedTrader
NASDAQ
National World War Two Museum
Nice Deb
Notes From Underground
NYSE
Open Markets
Pajamas Media
Pando Daily
PE Hub
Power Points
Ramanations
Ronald Coase Institute
Seatleaser News
Seatleaser.com
SEC
Senate Banking Committee
Senator Blutarsky
StockTwits
Take A Report
Tallgrass Beef
Techcrunch
The American
The Big Picture
The Clubber Fund
The Cusp
The Daily Crux
The Grumpy Economist
The Jack B Show
The Minimalist Trader
The Musings of The Big Red Car
The Polsky Center
The Streetwise Professor
Tough Love Marketing
Townhall
US Federal Reserve Bank
US House Financial Services Committee
US Treasury
Wire Points
World War Two Blog
-


