If You Just Cut Spending, You Slow Growth
by Gary Reber
There’s more to helping the economy than just cutting spending, says Mitt Romney. Mitt Romney said Tuesday that cutting spending slows growth in the economy — a rhetorical slip more akin to an argument a Democrat might make than a Republican. Speaking in Shelby Township, MI.
Investing in economic growth is paramount, but given the job displacing result of technological innovation, investments should accomplish broadening ownership of the new productive formation to labor workers, those displaced, and other non-owners using insured credit mechanisms to empower them to acquire ownership in the growth companies and pay for their acquisition out of the future earnings of the investments. There are numerous actionable policies that will dramatically impact the market economy and strengthen the middle class in a positive way, while expanding the base of private capital ownership and thus strengthening the way consumers make the money to purchase the products and services made possible by the new capital formation. The result will be to expand production and bring more wealth to the economy, which will provide not only growth in expanded ownership of productive capital but also in expanded employment opportunities as the economy revs up to meet expanded consumer demand. Furthermore, the more broadly real capital is acquired by individuals throughout our society with the earnings of capital, the more we will profitably employ unused capacity and promote economic growth.