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Jewish World Review March 5, 2008 / 28 Adar I 5768 With McCain, think of the GOP before Reagan By E. Thomas McClanahan
http://www.JewishWorldReview.com | So, what might a John McCain presidency look like? As improbable as this prospect seemed six months ago, it could happen. Despite all the snarling from the rightward precincts of the electorate, in the general election McCain will draw the lion's share of the conservative vote - given the sort of Supreme Court justices likely to be appointed by Barack Obama or Hillary Clinton, or the disaster that would follow either Democrat's defeat-in-Iraq inclinations. And of course McCain will draw solid support from independents. But a McCain presidency would be different from any GOP administration since Ronald Reagan. Up to now, he has been largely deaf to the expansive, confident, Reaganesque rationale for tax cuts - and the imperative of economic growth. Since Reagan, Republicans have put paramount emphasis on spurring the economy. Reducing the deficit and shrinking government have been part of the to-do list, and received prominent mention in campaign rhetoric. But in practice, deficit reduction has been farther down the list. Reagan re-energized national defense, defeated the Soviet Union and touched off an economic boom. However much he wanted to shrink federal spending and reduce the deficit, he had little success. McCain seems cut from the mold of pre-Reagan, root-canal Republicanism. Like many former military men, he seems suspicious of the whole process of wealth creation, which he seems to understand only dimly - as indicated by his responses in a recent debate. In that exchange, McCain noted that when he wore the uniform, he ran the Navy's largest squadron - and "did it out of patriotism, not for profit." Economics is clearly not McCain's strength. He has admitted as much. But it's the implied sneer that rankles. It doesn't seem to occur to him that at some point, the existence of every business in the American economy depended on the willingness of an entrepreneur or group of gutsy investors to risk scarce capital in an uncertain future. Memo to McCain: Without the profit motive, none of us out here in the private sector would have jobs. Lacking a real understanding of the process of economic growth, a President McCain would be in a poor position to articulate and defend an effective economic program. McCain voted against the Bush tax cuts. He says he now supports their renewal, but one senses little real enthusiasm. It's no surprise that the threat the tax cuts will be allowed to expire is now part of the climate of uncertainty dragging down the stock market. Take the two most important facets of the Bush tax cuts - the reduction in the capital gains and dividends tax to 15 percent. These lower rates are crucial because they reduced the cost of capital and encouraged more investment. This is especially important as the baby-boom generation nears retirement. To adequately prepare for retirement, workers need to save heavily and invest for the long term in the stock market - the best investment strategy for beating inflation over time. Our political class should be doing more to encourage people to invest, not threatening to penalize investors with higher rates when the tax cuts lapse at the end of 2010. Still, there are reasons to look forward to a McCain presidency. He's a free-trader. His national security credibility is unassailable. On his watch, progress will continue in Iraq and the war on terror won't get short shrift. And there's no doubt he intends to fight earmarks and hold the line on spending in general. Voters tell pollsters they worry about the deficit, but when push comes to shove many are unwilling to give up something tangible - a transfer payment or an earmark - for the sake of a smaller government and a lower deficit. If McCain is determined to make real progress on spending, it will mean constant war with Capitol Hill - involving members of both parties. Well, bring it on. It's fascinating, when you think about it. Over the years, McCain has managed to alienate virtually every segment of the conservative coalition, yet now he's headed for the Republican nomination. But if it's a choice between Barack and Hillary on the one hand and Mr. Cranky on the other, the choice to me is an easy one. Every weekday JewishWorldReview.com publishes what many in in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
E. Thomas McClanahan is a member of the Kansas City Star editorial board. Comment by clicking here.
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