Is the GOP offering the same-old solutions to some of Washingtons problems?
According to James Pethokoukis in an article for National Review, timeless economic principles — like free enterprise, competition and choice — should evolve and adapt to changing economic circumstances. But center-right politicians are stuck in their old ways by not offering new solutions.
Pethokoukis makes these claims because he feels policies should evolve based on changing demographics. For example, in 1980, when Ronald Reagan was elected president, “the top income-tax rate was 70 percent, inflation was 13 percent, health-care spending was 10 percent of GDP, and publicly held debt was 26 percent.” Today, however, “the top marginal tax rate is 40 percent, and inflation is 2 percent. Health-care spending and the debt have both risen by nearly 80 percent as a share of output.” Policies should adjust based on these types of changes.
In particular, Pethokoukis lists three “stale” solutions that Republicans should rework: the flat tax rate, the gold standard and the balanced budget amendment.