Project for Philosophical Evaluations of the Economy |
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Listen up Troika to Romney’s tax plan
Dialogue with the Alter Ego on the first presidential debate, drafted and published on Oct. 5, 2012
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Question by Alter Ego of Noah denkt™ (AE): What does Noah denkt™ make of the first presidential debate
between President Obama and Governor Romney on Oct. 3 in Denver?
Answer by Noah denkt™ (Nd): Well, we concur with the general observation that the Governor came out on top of
the President in this debate. And while the whole debate was in deed very interesting it was Romney’s tax plan in
particular that caught our attention most.
AE: And why is that?
Nd: Because the Governor was taking basically the same stance that we have taken earlier with respect to Spain
and Greece when we have argued that it is a mistake to raise taxes in order to reach a dual growth and austerity
target. Governor Romney, hence, shares our own view that under the current circumstances it is primarily albeit
brutal cuts in government spending that should form the basis of a combined growth-austerity strategy. That is in
considerable contrast to current IMF/Troika practice. And Mr. Romney needs to be applauded for that.
AE: We find it hard to believe that the tremendous financing needs of countries like Greece, Spain and in deed
the US can be met by government spending cuts only. We should, after all, not forget that every national recovery
is intimately linked to international factors. So, if the world economy is in a cyclical downturn no magic government
recipe what so ever can generate the national turnaround. In other words, governments may well need quite
some time before the recovery kicks in. And it is quite inconceivable to believe that this time gap can be bridged
by spending cuts only.
Nd: Well, we agree that this is hairy bet to take but we continue to believe that it is worth trying.
AE: Can we, therefore, assume that Mr. Romney is your favorite in the upcoming presidential election in the US?
Nd: Well, we agree with Romney’s view that it was wrong to introduce Obamacare on such a partisan basis. And
we also believe that Keynesian theory isn’t enough to put the US on a sound economic path for the future.
AE: So the answer to our question is “yes” then?
Nd: Yes, even though we find that Mr. Obama is, by far, the more affable of the two human beings in this race.
AE: But a charming and attractive personality doesn’t make for a good president?
Nd: Right from the start it seemed to us as if Mr. Obama is too young and inexperienced and simply not tough
enough for the top job. And unfortunately the bleeding aspects of his soul have gotten in the way of a great
Presidential performance.
AE: But don’t you think that, like Bill Clinton, he could grow into that great President during his second term.
Nd: In our mind, we are witnessing to some extent the end of the Keynesian era now. That constitutes a
monumental shift in human history. You can’t have someone steering that who is still learning on the job.
AE: Everyone will always be learning on the job.
Nd: But is easier to be tough when you have started out being tough.
Dialogue with the Alter Ego on the first presidential debate, drafted and published on Oct. 5, 2012
--------------------------------------------------------------------------------------------------------------------------------------
Question by Alter Ego of Noah denkt™ (AE): What does Noah denkt™ make of the first presidential debate
between President Obama and Governor Romney on Oct. 3 in Denver?
Answer by Noah denkt™ (Nd): Well, we concur with the general observation that the Governor came out on top of
the President in this debate. And while the whole debate was in deed very interesting it was Romney’s tax plan in
particular that caught our attention most.
AE: And why is that?
Nd: Because the Governor was taking basically the same stance that we have taken earlier with respect to Spain
and Greece when we have argued that it is a mistake to raise taxes in order to reach a dual growth and austerity
target. Governor Romney, hence, shares our own view that under the current circumstances it is primarily albeit
brutal cuts in government spending that should form the basis of a combined growth-austerity strategy. That is in
considerable contrast to current IMF/Troika practice. And Mr. Romney needs to be applauded for that.
AE: We find it hard to believe that the tremendous financing needs of countries like Greece, Spain and in deed
the US can be met by government spending cuts only. We should, after all, not forget that every national recovery
is intimately linked to international factors. So, if the world economy is in a cyclical downturn no magic government
recipe what so ever can generate the national turnaround. In other words, governments may well need quite
some time before the recovery kicks in. And it is quite inconceivable to believe that this time gap can be bridged
by spending cuts only.
Nd: Well, we agree that this is hairy bet to take but we continue to believe that it is worth trying.
AE: Can we, therefore, assume that Mr. Romney is your favorite in the upcoming presidential election in the US?
Nd: Well, we agree with Romney’s view that it was wrong to introduce Obamacare on such a partisan basis. And
we also believe that Keynesian theory isn’t enough to put the US on a sound economic path for the future.
AE: So the answer to our question is “yes” then?
Nd: Yes, even though we find that Mr. Obama is, by far, the more affable of the two human beings in this race.
AE: But a charming and attractive personality doesn’t make for a good president?
Nd: Right from the start it seemed to us as if Mr. Obama is too young and inexperienced and simply not tough
enough for the top job. And unfortunately the bleeding aspects of his soul have gotten in the way of a great
Presidential performance.
AE: But don’t you think that, like Bill Clinton, he could grow into that great President during his second term.
Nd: In our mind, we are witnessing to some extent the end of the Keynesian era now. That constitutes a
monumental shift in human history. You can’t have someone steering that who is still learning on the job.
AE: Everyone will always be learning on the job.
Nd: But is easier to be tough when you have started out being tough.
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| Keywords: Romney's tax plan, Romney's economic recovery plan, US Presidential Election 2012, presidential debate 2012, achieving growth and austerity, Romney vs Obama, Obama vs Romney, IMF and Troika recipes, austerity and growth, government spending cuts |