Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
Romney Won! He would tackle trade, repeal Obamacare, stop throwing money away on green jobs, reduce bank regulation, and continue strong defense spending.
Howard Richman, 10/12/2011
Governor Mitt Romney won the October 11 debate on the economy in Hanover New Hampshire. Here are some selections from what he said:
ROMNEY: Well, my choice is not to cut defense. I think it's a terrible idea to cut defense. I think it's a terrible idea to raise taxes. Particularly at a time when the economy's struggling, the idea of raising taxes, taking more money away from the American people so government can spend it, and can spend it -- right now, the president has a jobs bill.
TUMULTY: So this is...
ROMNEY: How'd his last jobs bill work out for us?
TUMULTY: But this is automatic cuts?
ROMNEY: Not so well.
(CROSSTALK) ROMNEY: No, I do not want the automatic cuts. I want to see that super-committee take responsibility for getting the economy going again by reining in the scale of the federal government and saying we're going to pull back on some of the programs we have and reform our entitlements so they're sustainable.
The American people want to see growth and jobs, and they believe that the right way to do it is by cutting back on the scale of government, and they're right.
TUMULTY: You know, Governor Romney, this issue does carry a lot of resonance, especially in the states like New Hampshire, which, as you probably know, has lost a greater percentage of its manufacturing jobs to China than any other state.
But voters have heard candidates talked tough on China before. George W. Bush did it, Barack Obama did it, only to see that once elected, the president takes a much more cautious approach because of the complexity of the relationship and the fact that this is our biggest creditor.
Why should voters believe that you would be any different?
ROMNEY: I'm afraid that people who have looked at this in the past have been played like a fiddle by the Chinese. And the Chinese are smiling all the way to the bank, taking our currency and taking our jobs and taking a lot of our future. And I am not willing to let that happen.
I'm in this race to try to get America to make sure we're strong again and we're creating jobs where the best place in the world to be middle class again. And for that to happen, we have to call cheating for what it is.
And people say, we might have a trade war with China. Well, now, think about that.
We buy this much stuff from China, they buy that much stuff from us. You think they want to have a trade war?
I mean, this is a time when we are being hollowed out by China, that is artificially holding down their prices, as you just said a moment ago, and that's having a massive impact on jobs here. It is the wrong course for us.
When people have pursued unfair trade practices, you have to have a president that will take action. And on day one, I have indicated, day one, I will issue an executive order identifying China as a currency manipulator. We'll bring an action against them in front of the WTO for manipulating their currency, and we will go after them. If you are not willing to stand up to China, you will get run over by China, and that's what's happened for 20 years.
ROMNEY: Rick [Santorum], you're absolutely right. On day one, granting a waiver for all 50 states doesn't stop in its tracks entirely Obamacare. That's why I also say we have to repeal Obamacare, and I will do that on day two, with the reconciliation bill, because as you know, it was passed by reconciliation, 51 votes.
ROSE: All right.
ROMNEY: We can get rid of it with 51 votes. We have to get rid of Obamacare and return to the states the responsibility...
ROMNEY: Let me just -- let me just say this, which is we all agree about repeal and replace. And I'm proud of the fact that I've put together a plan that says what I'm going to replace it with. And I think it's incumbent on everybody around this table to put together a plan that says this is what I'll replace it with, because the American people are not satisfied with the status quo. They want us to solve the problem of health care, to get it to work like a market, and that's what has to happen.
On his Jobs Plan
CAIN: Yes. One of my guiding principles has been and will always be, surround yourself with good people. The 999 plan that I have proposed is simple, transparent, efficient, fair, and neutral.
My question is to Governor Romney. Can you name all 59 points in your 160-page plan, and does it satisfy that criteria of being simple, transparent, efficient, fair, and neutral?
ROMNEY: Herman, I have had the experience in my life of taking on some tough problems. And I must admit that simple answers are always very helpful, but oftentimes inadequate.
And in my view, to get this economy going again, we're going to have to deal with more than just tax policy and just energy policy, even though both of those are part of my plan.
And the other parts of my plan are these. One is to make sure that we stop the regulatory creep that has occurred in Washington. And all of the Obama regulations, we say no to, we put a halt on them, and reverse all those that cost jobs.
Number two, we have trade policies that open up new markets to American goods. And I lay out a number of things that I would do in that 59 points to open up more markets to American goods. And, we, of course, stop the cheating that goes on.
We also have to have the rule of law. By that I mean you can't have the federal government, through its friends at the National Labor Relations Board, saying to a company like Boeing that you can't build a factory in a non-union state. That's simply wrong and violates the principle of the rule of law.
We also have to have institutions that create human capital. We're a capitalist system. But we don't just believe in physical capital or financial capital, also human capital. We need great schools, great institutions.
Finally, you have got to have a government that does not spend more money than it takes in. Those are the seven major pillars of those 59.
On Tax Breaks
ROMNEY: Well, the reason for giving a tax break to middle income Americans is that middle income Americans have been the people who have been most hurt by the Obama economy. The reason that you're seeing protests, as you indicated, on Wall Street and across the country is, middle income Americans are having a hard time making ends meet.
Not only do we have 25 million people out of work, or stopped looking for work, or part-time jobs needing full-time employ, we just saw this week that median income in America has declined by 10 percent during the Obama years. People are having a hard time making ends meet.
And so if I'm going to use precious dollars to reduce taxes, I want to focus on where the people are hurting the most, and that's the middle class. I'm not worried about rich people. They are doing just fine. The very poor have a safety net, they're taken care of. But the people in the middle, the hard-working Americans, are the people who need a break, and that is why I focused my tax cut right there.
On His Own Business Background
HUNTSMAN: Since some might see you because of your past employment with Bain Capital as more of a financial engineer, somebody who breaks down businesses, destroys jobs, as opposed to creating jobs and opportunity, leveraging up, spinning off, enriching shareholders, since you were number 47 as governor of the state of Massachusetts, where we were number one, for example, and the whole discussion around this campaign is going to be job creation, how can you win that debate given your background?
ROMNEY: Well, my background is quite different than you described, John. So the way I'll win it is by telling people an accurate rendition of what I have done in my life. And fortunately, people in New Hampshire, living next door, have a pretty good sense of that.
They understand that in the business I was in, we didn't take things apart and cut them off and sell them off. We, instead, helped start businesses, and they know some of the names.
We started Staples. We started the Sports Authority. We started Bright Horizons children's centers. Heck, we even started a steel mill in a farm field in Indiana, and that steel mill operates today and employs a lot of people.
So, we began businesses. Sometimes we acquired businesses and tried to turn them around, typically effectively. And that created tens of thousands of new jobs.
And I am proud of the fact that we were able to do that. That is a big part of the American system.
People are not going to -- in my opinion, are not going to be looking for someone who is not successful. They want someone who has been successful and who knows how fundamentally the economy works.
Look, I would not be in this race had I spent my life in politics alone. Nothing wrong with that, of course, but right now, with the American people in the kind of financial crisis they are in, they need someone who knows how to create jobs, and I do.
On Bank Regulation
ROMNEY: OK. What's happened in this country under the Obama administration is that you have a president who I think is well meaning, but just over his head when it comes to the economy.
And the absolute wrong time to have the absolute wrong people put together a financial regulatory bill was right now in Barney Frank and Chris Dodd. They were the wrong guys at the wrong time, because what they did with this new bill is usher in what will be hundreds and thousands of pages of new regulations.
The big banks, the big money-center banks on Wall Street, they can deal with that. I spoke with one banker there that said they have hundreds of lawyers working on that legislation and trying to implement it.
For community banks that provide loans to businesses like yours, they can't possibly deal with a regulatory burden like that. Then you have inspectors coming in and writing down their assets and saying they're not worth as much as the bank thought they were worth, and therefore the banks are unable to lend.
Small community banks across this country are starving and struggling because of inspectors that are making their job impossible and because of regulation that's fine for the big banks, because they can deal with it. It's a killer for the small banks. And those small banks loaning to small businesses and entrepreneurs are what have typically gotten our economy out of recession. What's -- what the president has done on almost every dimension is exactly the wrong thing to get this economy going again.
On Obama's Stimulus Plan and Jobs Bill
ROMNEY: No one likes to see tax increases, but look, the stimulus bills the president comes out with that are supposedly going to create jobs, we have now seen this played in the theater several times, and what we're seeing has not worked.
The American people know that when he went into office and borrowed $800 billion for a massive job stimulus program, then they did not see the jobs. Some of those green jobs we were supposed to get, that is money down the drain.
The right course for America is not to keep spending money on stimulus bills, but instead to make permanent changes to the tax code. Look, when you give -- as the president's bill does, if you give a temporary change to the payroll tax, and you say, we're going to extend this for a year or two, employers do not hire people for a year or two.
They make an investment in a person that goes over a long period of time. And so if you want to get the economy going again, you have to have people who understand how employers think, what it takes to create jobs.
And what it takes to create jobs is more than just a temporary shift in a tax stimulus, it needs instead fundamental restructuring of our economy to make that sure we are the most attractive place in the world for investment, for innovation, for growth, and for hiring. And we can do that again.
GOLDMAN: So you would be OK with seeing the payroll tax cuts?
ROMNEY: Look, I don't like temporary little Band-Aids, I want to fundamentally restructure America's foundation economically.
On America's Future
ROMNEY: You know, we've talked about crisis this evening, economic crisis, people out of work, incomes going down. But there's another crisis, and that's that people wonder whether their future will be brighter for the kids than it's been for them. It's always been what it means to be American, to have a greater degree of confidence in the future than even what we've enjoyed ourselves.
Romney came off great. He would tackle trade, repeal Obamacare, stop throwing money away on green jobs, reduce bank regulation, continue strong defense spending.
The only thing he hasn't figured out yet is that he could win any trade war with China if he simply imposed a WTO-legal scaled tariff to balance trade. The result would be that China and the other mercantilists would be forced to take down their barriers to American products.
Comment by packeryman, 10/13/2011:
Romney is the only candidate with a chance of beating Obama. He is the only candidate that can carry the majority of the Independents, moderate Republicans, some Dem's that don't like Obama and some far right crazies who can't stand to let Obama win. He will do better with Independents and moderate Republicans if he picks a VP outside the group that has no ties with the bible thumpers and tea baggers. Cain is a one dog and pony show(9-9-9), Perry should be history.
Response to this comment by Howard Richman, 10/14/2011:
He has to pick somebody who is more conservative than he is, so that he can unite the Republican Party behind him.
Comment by harpat949, 11/14/2011:
It seems strange to propose increased defense spending when it is already excessive and wasteful and ineffective. Cutting taxes would be good if businesses reinvested the money for creating jobs. Currently the corporations are only ripping off America's technlogy assets and selling them off to oversaes competitors and handing out mega bonuses to their CEO's. Only consficatory taxes can prevent this rip off. IMHO obamacare or any care is a non-issue. The American medical industry is not subject to competetive pressures because of the insurance system which pays medical expenses from a common pool. Prices will keep escalating one way or another until patients have incentives to hold down costs. The cost of medical insuarance to an American company is equal to the wages of 3 Chinese workers for a whole year. If American wages are reduced to zero it would be still cheaper to manufacture in China because of the medical burden.
Comment by Ted Birnbaum, 11/24/2011:
Too bad Romney has a credibility gap....considering his flip flop on abortion and his acceptance of mandatory medical insurance in Mass....definitely not a friend of liberty. But if Romney is the Republican nominee, I will certainly vote for him, rather than Obama.