In broad strokes...Republicans want to return to the past to "solve" the very problems that brought us to today's poor economic climate.
House Republicans have now admitted
what we've known for a long time: They intend to bring back the exact
same George W. Bush agenda which drove our economy into the ditch.
Admitted on Meet The Press.
The past lead us to where we are today. Why would they want to go back?
Some Economic History: ( These are facts that can be verified. )
In 1993, President Clinton, a Democrat and Vice President Gore launched their economic strategy: (1) establishing fiscal discipline, eliminating the budget deficit, keeping interest rates low, and spurring private-sector investment; (2) investing in people through education, training, science, and research; and (3) opening foreign markets so American workers can compete abroad. After eight years, the results of President Clinton's economic leadership are clear. Record budget deficits have become record surpluses, 22 million new jobs have been created, unemployment and core inflation are at their lowest levels in more than 30 years, and America is in the midst of the longest economic expansion in our history.
On Jan. 7, 2009, after 8 years of a Republican administration and two weeks before Obama took office, the CBO reported the deficit was projected to be $1.2 trillion. When Bush took office, the national debt, accumulated since the founding of the nation, stood at $5.6 trillion. By the time Bush left office, it exceed $11 trillion. In only eight years, he will have created more debt than all other U.S. presidents combined.
A graph ( http://zfacts.com/p/318.html ) shows the history of our National Debt as a percentage of GDP. A huge spike was created by the second world war which would be expected...but people had jobs. The debt decreased steadily from Truman to Jimmy Carter. As soon as Republican Ronald Reagan took office the national debt took a sharp climb upwards and continued until President Clinton ( Democrat ) took office. In the course of his term in office the debt declined and he built up a cash surplus. When George Bush took office in 2000, the debt took a sharp turn upwards, wiping out the Clinton surplus, and has not stopped yet.
According to Business Week, the average CEO of a major corporation made 42 times the average hourly worker's pay in 1980. By 1990 that had almost doubled to 85 times. In 2000, the average CEO salary reached an unbelievable 531 times that of the average hourly worker. The bad economy is never bad for these CEO's. As profits fall they fire workers and keep a bonus.
According to a recent study by University of California-Berkeley, the United States could lose as many as 14 million white-collar jobs as a result of the new outsourcing trend, and workers fortunate enough to hold on to their jobs will see decreasing wages and benefits as US companies try to keep pace with low-wage countries.
Corporations are driven by profit, not that profit is bad per se, provided that they maintain a balance between their profit motives and their impact on society and our economy. There must be an ethical and moral balance between profits and what is right for the nation in which they operate and prosper.
Enter Politics: Special Interest influence on elections and law makers, both national and state.
There is a great site for delving into finance implications of politics called http://www.opensecrets.org where you can find out who gives what to influence campaigns and legislation. It is clear that both Democrats as well as Republicans accept campaign help from well funded sources. To anyone in business it is also understood that a businesses or organization will not spend money unless they have a reasonable expectation of a positive return on that investment. Supporting a political candidate with millions of dollars is no exception. These expenditures are a legal form of bribery not available to the average American. The money is spent and something of value is given in return...somewhere along the line, typically in the form of special consideration in legislation designed to protect those special interests and elevating those interests above those of the American citizen.
There are two broad categories of spenders in this system. Corporations and Labor Unions and related worker associations who speak for their membership. The first answer to shareholders and are concerned with profits, not the well being of the American worker. Unions and similar associations as well as grass roots organizations, represent their membership, made up of and funded by millions of individual American citizens. An examination of the contributions will reveal that most contributions to Democrats are provided by American workers via various unions and worker supported associations. Republican's main source for funding comes from private corporations with profit driven motives, made of a wealthy few for which you and I can't vote.
While Republicans tend to lay claim to being the "fiscal conservative" party, history as shown above provides hard economic proof that the average worker and our economy often does more poorly when Republicans are in power than when Democrats have the helm. Clinton, (D) left us with 23 Million new jobs and a surplus while Bush ( R ) ate that surplus and replaced it with the largest deficit in the history of our nation and a net zero gain in jobs adjusted for increase in population. Not a fiscally responsible management of our economy.
But despite the down turn in the over all economy for the average American, large corporations have scored record profits. CEO's earn millions of dollars a year in compensation even as they lay off workers to save money. Wages and benefits, after all, are an expense to be avoided where possible. One trick is to send American jobs and factories over seas to cheap labor, eliminate any benefits and to avoid paying anything into our tax structure such as income taxes, social security and unemployment insurance. Many of these companies also receive tax incentives at the same time as they deport our jobs..incentives we have to pay for.
Labor organizations support American jobs working in America. They sponsor Democrats. Major corporations support low costs and high profits best served by sending work over seas or cutting salaries and benefits to American Workers...they support Republicans.