Conservative Principles Help The Economy – Part One

How Conservative Principles Can Help the Economy

Part 1 of a 7 part series December 3-9, 2008

By Peter Andrew – ConservativeAmerican.org


Economists, pundits and elected officials are all looking for a magic potion that will fix the ailing economy.  None is needed.  Traditional Conservative American principles, values, beliefs and ideals can be the medicine our nation and our economy needs.  When applied, these core conservative values can improve our economy and put American ingenuity to work to create prosperity.


For each of the next seven days, we’ll be looking at two core principles of traditional conservative Americans and how they can be put to work to repair the economy. Today, we’ll examine lowering taxes and shrinking the size of the federal government.



  • Lower taxes – on you, your neighbors and the businesses you own or work for.

A tactic the government could employ to improve the economy would be to lower taxes.  Conservative Americans have always stood for lower taxes.  In January, Barack Obama himself may join us.  There have been hints that he would be willing to consider a tax cut.  He has promised a tax cut for 95% of all Americans and time will tell how that plays out.


The tax cut has to be a genuine tax cut to work, not a welfare style tax “rebate.”  Knowing that more than…



… 40% of all Americans don’t pay any Federal income tax, Barack Obama’s promise to cut taxes for 95% of the people, clearly is a proposal to spread the wealth around through a tax rebate.  Now, many people hear that more than 40% of Americans don’t pay federal income tax and they don’t believe it.  How can that be?  Unemployment is not at 40%.  Those working certainly have federal income tax taken out of their paychecks, so this must be a republican lie, they think.  The answer is simple, but does need to be explained.  We cannot just assume everyone will believe what we say.  Those people do indeed have federal taxes taken from their paychecks.  When they file their tax returns, however, they get that entire amount back.  So you could say they really do “pay” the tax and then they get a refund.  However, it is more accurate to state that they actually don’t pay any federal income tax at all.


A rebate would only offer a one-time shot to the economy at best.  Many people will just hold on to the money now.  In advice that only makes things worse, people are being told not to spend anything right now “just in case.”  That is scary advice and people hear it, believe it, and stop spending making the cycle even worse.  So handing out a rebate (and a welfare rebate to those who don’t even pay federal taxes) will not be the answer.


However, a permanent tax rate cut for all taxpayers will help.  People will consistently have more money in their own pockets.  The extra money will make Americans more secure and more comfortable in spending.  That spending will then require companies to make more things and offer more services.  This will help the economy.  It can also lead to more income for the federal government than it had prior to the tax cut.  This has happened each of the three times an American president has signed a substantial tax cut (John F. Kennedy, Ronald Reagan and George W. Bush).  The additional spending consumers will carry out translates into more business and more business tax income for the federal government.  It is a lie to suggest that tax cuts “have to be paid for.” Still the democrats convinced America that this is true.  If you cut the amount coming in, they said, then clearly you have to cut the amount going out (as if they have ever done that in their entire lives).  It made sense.  They communicated their message effectively.  Conservatives did not.  We need conservative leaders who know how to talk with real people, how to get a message out in clear and simple terms that we can all understand.



  • Smaller government – not just eliminating scheduled spending increases, but finding failing and unnecessary government programs to eliminate completely, perhaps even eliminating entire federal departments. Fiscal responsibility.


The government, as employer, is a huge part of the economy.  As conservatives, we believe employment is what happens in a free market, capitalist society.  It is not something we need to rely on the government for.  Presidents like George W. Bush and Bill Clinton, neither of which were conservatives, oversaw massive increases in the size of the federal government.  The federal budget is up more than $1-Trillion just since Bush 43 took office.


First, we need to eliminate scheduled spending increases.  Conservatives can’t roll over and play dead on this issue as they have done repeatedly.  It seems conservatives lose much of their spine when they arrive in Washington, D.C.  These are NOT “cuts” in spending and we cannot let Katie Couric and Charles Hubris Gibson tell America that they are.  Eliminating scheduled increases, only means the budget will not increase automatically.  It would leave spending at the present level.  That’s not a cut!


Then, as conservatives, we need to look at ways that government is involved in our lives that are simply not necessary.  There may be entire federal departments we can eliminate.  Do we really, really need a US Department of Education?  Or can this power be given to states?  Do we need the United States Post Office?  Or can private businesses handle all mail now?  The list can go on and on.


Reducing the size of the monster means it won’t need as much of our food to eat.  A leaner and more effective federal government will not require the level of taxes that we now pay.  This can result in yet another tax cut.


Continues tomorrow with less government regulation and energy independence…

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