Congressman Paul Ryan on the DOA Stimulus 2, The Supercommittee and the Race He Didn’t Make
House Budget Chairman Paul Ryan joined me on yesterday’s program and discussed the president’s demand for Stimulus 2.0 as well as alternative means of stimulating the economy, corporate tax reform, the Supercommittee, and the race he didn’t make for the GOP nomination as well as Monday night’s debate among those who are running.
On the president’s “plan”:
HH: Congressman, the President has proposed a second stimulus, Stimulus 2.0.
HH: He doesn’t call it that, but that’s what it is. Is that dead on arrival?
PR: Yeah, look, if you want to look at what this is, take the last stimulus package, divide by two, and that’s what this is. It literally is the same components. It’s more bailouts to state governments, it’s more temporary tax rebates, and more spending on jobs, infrastructure, things like that, which have proven to not be so shovel ready. The same economic models that they’re using to justify this sort of booster shot economics, or sugar high economics, have already proven to completely fail. It didn’t create the kind of jobs they promised. And so I just don’t think it’s a good idea to advance ideas that we have recently proven have failed. Look, George Bush tried some of these ideas, too. He did the rebate thing as well, and it didn’t work. So it’s not just President Obama, these have been tried by both parties, and these ideas have failed. And so they’re a poor substitute for just the basics – sound money, sound regulations, low, permanent tax rates, getting the debt and deficit under control. And what this bill does is it’s all this temporary stimulus that have proven to fail, paid for by permanent tax increases, which just injects more uncertainty into businesses, into small businesses. We’re already seeing a big tax increase coming in 2013. This just piles on top of the tax increase that they have coming at them in 16 months, and it sort of, the whole notion of this thing is predicated upon the belief that businesses only look at just what’s happening today, and they don’t look at what’s happening tomorrow. That’s just not true. Ask any business leader, any business owner. They look to the future to make their decisions for the present as to whether they’re going to take a risk, whether they’re going to invest. And what this bill does is it raises the specter of higher interest rates, bigger deficits and higher taxes. And that’s just not good for growth.