Republican Presidential Candidate Rick Perry would run the country the same way he ran Texas as its Governor. His economic policies are aligned with the Tea Party branch of the Republican party. Perry's plan is based on four principles:
- Don't spend all the money.
- Have a tax policy in place that doesn’t put undo burden on the job creators.
- Have a regulatory climate that is fair and predictable.
- Have a legal system in place that doesn’t allow for oversuing.
Perry's Economic Plan:
Perry would execute his four principles with these specific actions:
- Require all federal agencies to "identify and eliminate federal waste by justifying every taxpayer dollar spent."
- Repeal Obamacare. Perry believes employer-sponsored health plans are the best way to provide health care. He points out that creating jobs will reduce the strain on public safety net programs like Medicaid, saving taxpayer dollars.
- Opposes the "Buffett Rule," which would tax millionaires at the same rate as middle income taxpayers. (Source: Perry for President)
Impact on the Economy:
Perry's plan to cut the budget sounds similar to a program used during the Bush Administration, during which the debt nearly doubled. Even if Perry's plan is more successful, it might not be the right time to engage in constrictive fiscal policy that could lead to government layoffs that would increase unemployment.
Perry's approach to providing health care insurance is to create more jobs. However, not all jobs provide health care benenfits. This approach doesn't help the millions who are self-employed. Eliminating Obamacare won't necessarily create jobs if the demand isn't there. Perry's approach doesn't address rising health care costs, which could ultimately government costs to Medicare.
Perry, along with fellow Tea Party candidate Michele Bachmann, would eliminate the Dodd-Frank Wall Street Reform Act because it puts too much cost of compliance on small community banks. However, deregulation of big banks was a big factor contributing to the 2008 financial crisis. (Source: MSN)
Tax Cuts Alone Don't Create Jobs:
Perry's job creation strategy is to cut taxes. This is known as supply-side economic theory, which was used successfully during the Reagan Administration when the highest tax rates were above 50%. This theory is based on the Laffer Curve, which shows that tax cuts won't create jobs when tax rates are already low.
Perry Calls Fed Chair Bernanke a Traitor:
Perry agrees with fellow Republican Texan Ron Paul in his criticism of the Federal Reserve's lack of transparency. Perry went even further by saying, "If this guy prints more money between now and the election, I dunno what y'all would do to him in Iowa but we would treat him pretty ugly down in Texas. Printing more money to play politics at this particular time in American history is almost treasonous in my opinion." He said that the Fed's policies are ineffective. Instead of trying to stimulate the economy by "printing money," the Fed should let the private sector create jobs. (Source: Washington Post, "Perry Renews Fed Criticism," September 29, 2011)
Perry's Record as Texas Governor:
According to Perry, no other candidate for President can match his record on job creation since Texas created 40% of all the new jobs in the U.S. since June 2009. For nine straight years, Texas has led the nation in exports to foreign countries among the 50 states. In addition, Texas population growth has resulted in increases in teachers, police and doctors. It's also increased low-wage, high labor industries such as fast food restaurants. He established incentive funds to encourage employers to create thousands of jobs and invest in new technology. And he signed budgets that invested billions more in education, as well as some of the strongest lawsuit reforms in the country – including a “loser pay” law to cut down on frivolous lawsuits." (Source: Rick Perry for President 2012)
Perry has reduced state spending, balanced the budget and still left $6 billion in the state’s Rainy Day Fund. However, he can't take full credit for this, since the Texas Constitution requires a balanced budget. Much of the Rainy Day Fund will be used in the next legislative session. Perry also signed a historic property tax cut, and a tax cut for small businesses with less than $1 million in gross receipts. However, lawmakers also expanded the state’s business tax.(Source: The Texas Tribune, How Perry's Four Principles Compare to His Record, September 17, 2011)
Rick Perry "grew up without indoor plumbing the first five years of his life, wore clothes hand-sewn by his mother, and was even bathed in a number 2 washtub as a young boy." His parents were tenant farmers. Despite this impoverished upbringing, Perry received a bachelor’s degree in Animal Science from Texas A&M University in 1972. He served 5 years in the Air Force. He was a "conservative Reagan Democrat" when elected to as a State Representative for three terms. He became a Republican before being elected Agriculture Commissioner in 1990 and 1994. He was the first Republican Lieutenant Governor in 1998, becoming governor in 2000 when George W. Bush resigned to become President. Perry has remained Governor ever since. (Source: Rick Perry for President) (Article updated September 29, 2011)
In fact, this very nearly happened in the summer of 2011. Congress delayed approving a debt ceiling extension until the last minute. As a result, the threat of default caused Standard & Poor's to lower it credit rating on the U.S. from AAA to AA+ for the first time in history. The Lone Star State's combination of low taxes, reasonable and predictable regulatory structure and fair court system provides a stable base upon which to build the Texas economy, while the state's diverse and hard-working workforce is prepared to meet any need an employer can present. Over the laAnd no government program, no matter how well-intentioned, can fix that. To pay for additional programs, governments tend to raise taxes, borrow heavily, or both, and those actions only serve to further depress job creation. It's a vicious cycle that states like Michigan, Illinois and California are struggling to deal with as we speak, and the challenges they face are only going to become more difficult in the midst of continuing national economic turmoil. The fact is government doesn't create jobs, otherwise the last two and a half years of stimulus would have worked. Government can only create the environment that allows the private sector to create jobs. The single most important contributor to our jobs-friendly climate here in Texas is our low tax burden because we know dollars do far more to create jobs and prosperity in the people's hands, than they do in the government's. We've kept our regulatory structure predictable, limiting the red tape that can often trip a business up.st two years, 40 percent of the net new jobs created in the United States were created in Texas.At Gov. Perry's urging, the Legislature has established and consistently funded two additional tools to attract and create Texas jobs - the Texas Enterprise Fund (TEF) and Emerging Technology Fund (ETF). The TEF functions as a "deal closing" fund, enabling Texas to compete directly with incentives offered elsewhere in the country, its investments tied directly to job creation. Meanwhile, the ETF helps early-stage tech companies grow their ideas from the laboratory into the marketplace, in the process helping keep Texas at the forefront of new technologies.(Article updated September 29, 2011)
Other Republican 2012 Presidential Candidates and Policies: