Best of the Week
Most Popular
1.Stock Market Continues Defying Gravity, Dow New All Time High - Nadeem_Walayat
2.America Superpower 2016 - Ian Bremmer
3.The US Dollar and the Precious Metals Complex - Rambus_Chartology
4.UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - Nadeem_Walayat
5.The “Real Flash Crash” Will Scare You to Death - Shah Gilani
6.Gold Price Trend Forecast - Bob_Louka
7.UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt - Nadeem_Walayat
8.Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - GoldCore
9.Will Interest Rates Ever Rise? - BATR
10.Who’s Killing the Stock Market? - Shah Gilani
Last 5 days
Options Pricing - Covert Gamma, Portfolio Insurance, and STDs - 30th May 15
U.S. Crude Oil Production Sets New Modern Record - 30th May 15
Gold Still Waiting - 30th May 15
Investing’s Great Struggle - 29th May 15
How Rich Countries Get Rich - Freedom, Global Poverty, and the Failure of Foreign Aid - 29th May 15
Goldman Sachs Warns “Too Much Debt” Threatens World Economy - 29th May 15
Skunk Works Engineers Supersonic Profits - 29th May 15
Gold, Silver and US Dollar Strength - 29th May 15
This New Currency Could Wipe Out the Euro - 28th May 15
US Housing Market - Something Smells Fishy - 28th May 15
US Economy – Semi b2b Amps Up its Trend - 28th May 15
U.S. Fed Exported QE Travesty: Meet The BLICS Nations - 28th May 15
World War D—Deflation - Secular Bear Markets Analysis - 28th May 15
George Soros Warns of “Third World War” - 28th May 15
Why You Shouldn't Try to Invest Like Warren Buffett - 28th May 15
Stock Markets Buy and Hold is Back! - 28th May 15
We're Now Frighteningly Vulnerable to a Bond Market Crash - 28th May 15
Austerity, Economics and Religion - 28th May 15
National Holidays London and the Magic of Legoland UK Review - 27th May 15
Imminent Stocks Bear Market Signaled by Dow Theory ... - 27th May 15
Gold Price Has Bottomed – More Evidence - 27th May 15
Three Reasons You Shouldn’t Try to Invest Like Warren Buffett - 27th May 15
Gold Is “100% Guarantee from Legal and Political Risks” States Russian Central Bank - 27th May 15
Don't Drown in the Sea of Global Debt - 27th May 15
Three Reasons Why Carl Icahn Is Wrong About Apple Stock - 27th May 15
Crude Oil Price Stochastic Signals - 26th May 15
Why the Stock Market Will Crash - 26th May 15
GDP, Inflation, Employment Economic Statistics: It’s All a Lie - 26th May 15
Introduction to Peak Food - 26th May 15
Should We Dump the Euro? - 26th May 15
A Geopolitical Net Assessment of Europe - 26th May 15
Stock Market Top in Place? - 26th May 15
Best Cash ISA SBI 2.3% - 2.8 Year Fix, UK Interest Rates 2016 - 26th May 15
China Sets Up Gold Bullion Fund For Central Banks - 25th May 15
Is The Silver Trade Getting Crowded? - 25th May 15
Money Murder Mystery: Who Killed the Stock Market? - 25th May 15
Why Do We Celebrate Rising U.S. House Prices? - 24th May 15
Mario Draghi’s Slippery Downward Slope - 24th May 15
Gold : Truth is Stranger than Fiction - 24th May 15
Facebook Stock Price Forecast - 24th May 15
Make a Killing on the Coming Energy "Debt Bubble" - 24th May 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Biggest Debt Bomb in History

Why Mitt Romney Lost the U.S. Presidential Election

Politics / US Presidential Election 2012 Nov 08, 2012 - 03:00 AM GMT

By: Ian_Fletcher

Politics

If Romney had won, I'd be saying it was because Americans have a long, long history of booting incumbents who preside over high unemployment and economic weakness.

This much is true. In fact, I think Romney counted on it all too much. In the end, his case against Obama came down to “Your economy sucks.”


I guess he figured it worked for Reagan.

But no, actually, it didn't. Reagan's case against Jimmy Carter in 1980 wasn’t merely a negative one, but backed up by a well developed and then-new alternative philosophy of economics.

You can disagree with that philosophy, in whole or in part, and question how new under the sun it was, but there's no question that there was a “there” there. Tax cuts, deregulation, laissez faire, supply side economics, and the Laffer curve amounted to something substantial.

Reagan had a positive vision, and that makes all the difference. What matters in politics isn't what you're against, it's what you're for.

What did Romney have? A thin “five point plan” with less substance than Ronald Reagan's offhand remarks. The same old Republican orthodoxy, and thus only of interest to orthodox Republicans. Tax cuts that weren't irresponsible because tax increases would make up for them--so they weren't really tax cuts, just changes.

None of this was inevitable. The political space exists for a new rightist vision of the economy. It's called economic nationalism.

This position says that America's economy has been getting sick from uncontrolled globalization for years now, and that the answer is to reassert our original economic tradition, which goes back to Hamilton, of running our economy explicitly in the national interest, not in mere deference to the supposed benevolence of free markets.

Its first big policy would be repudiating free trade. (This I support.)

Its second big policy would be cutting mass immigration. (I take no position here, but it’s a natural part of the package.)

If Romney had been serious about these policies, he could have offered the American people a real alternative to Obama. Both these policies are popular with the voting public, and even more so with the rightist and centrist voters Romney needed to win.

Romney did make some noises about cracking down on China’s abusive trade relationship with the United States. He did take positions on immigration (especially illegal) that were more opposed than Obama. I even thought for a while that he was really going to ride these issues.

But he didn’t. He took the positions best for him, but never really used them. His campaign, in the end, was all “Your economy sucks.”

I don't know why he did this. Perhaps he didn't understand his need to offer a serious alternative and a positive agenda. Technocrats like Romney and Michael Dukakis can be shallow in that way. Perhaps he thought he could win without them. Perhaps his shadowy backers waved him off.

In any case, Al Gore is no longer America's only presidential “nearly man.” And I remain convinced Republicans must turn to economic nationalism if they are to have any future at all.

Ian Fletcher is the author of the new book Free Trade Doesn’t Work: What Should Replace It and Why (USBIC, $24.95)  He is an Adjunct Fellow at the San Francisco office of the U.S. Business and Industry Council, a Washington think tank founded in 1933.  He was previously an economist in private practice, mostly serving hedge funds and private equity firms. He may be contacted at ian.fletcher@usbic.net.

© 2012 Copyright  Ian Fletcher - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History