Mitt's Prescription for the Future

Jim Cramer on CNBC is mad as hell and is trying to protect his viewers from what he sees as an Obama disaster. Last night he suggested anywhere but the US, investing in an Australian Company. Last I knew Cramer was a Dem--remember Kudlow and Cramer used to be paired? Cramer has also described Mitt Romney as the best businessman in North America (to Chris Matthews). So here's Gov. Mitt Romney's speech at CPAC. Here's where he addresses the economy:

We‘re at one of those rare moments in history, when the biggest tests come all at once. We don’t have the luxury of taking them on one by one. We have to get a lot of things right, and all at the same time. We’re in the second year of a major recession, and if we don’t make the right choices, things could get worse. Americans have already lost some 12 trillion dollars in net worth. And the pool of our nation’s investment capital has also shrunk by trillions of dollars.

The President has already moved to stop our economy’s downward spiral. Parts of the stimulus will, in fact, do some good. But too much of the bill was short-sighted and wasteful. Every single Republican in Congress voted in favor of a better stimulus plan, one that focused on creating jobs immediately. But Congressional Democrats couldn’t restrain themselves from larding up their bill with tens of billions of dollars for their political friends. Republicans wanted to stimulate the economy, Democrats wanted to stimulate the government. Conservatives in the House and Senate stood their ground and voted no — and they were absolutely right.

So far, the Administration has been unclear on what it will do to address the huge decline in the pool of risk and investment capital. These losses will be felt in businesses that don’t start-up and grow, and in jobs that don’t get created. To grow the pool of investment capital, the last thing you’d do is to raise taxes on investment, as the President has proposed. The surest, most obvious course is to rule out higher taxes on investment. I would propose going one step further. For all middle-class Americans, we ought to abolish the tax on interest, dividends and capital gains.

This economic crisis has proven that government has an urgent obligation to address some awful abuses we’ve seen in the financial sector, particularly in housing finance. Free markets, properly regulated and allowed to work as they should, have propelled America to be the largest economy in the world. For years, Washington politicians did nothing to prevent the abuses at Fannie and Freddie, and in some cases they encouraged those abuses for political gain. Let’s be clear on this point: conservatives favor clear, streamlined and up-to-date regulations and laws that let the economy work, but we will vigorously oppose those politicians who are poised to use their own failures as an excuse to undermine the free enterprise system.

I know we didn’t all agree on TARP. I believe that it was necessary to prevent a cascade of bank collapses. For free markets to work, there has to be a currency and a functioning financial system. But we can agree on this: TARP should not have been used to bail out GM, Chrysler and the UAW. And this is personal for me, I want the U. S. auto industry to succeed. But as some of us pointed out last November, that can only happen if its excessive costs and burdens are restructured. And concessions are going to be few and far between if bondholders and unions already have your money when the negotiating begins. The right answer for Detroit is this: Fix it first.

All of these measures are meant to confront the current economic peril. Properly guided, Washington could in fact speed the recovery. So far, some of the actions it has taken will help, and some will hurt. But we can be certain that the American economy will recover. The invisible hand of the market is more powerful than the lumbering machinery of government. In the final analysis, we know that the private sector — entrepreneurs and businesses large and small — will create the millions of jobs our country needs.

Earlier this week, the President addressed not only the current economy, but also his broader goals. I was pleased that he put healthcare, education, and energy on the agenda. The direction we take on these issues will profoundly shape the future of the nation. I’m afraid I know where the liberal Democrats want to take us. And as they try to pull us in the direction of government-dominated Europe, we’re going to have to fight as never before to make sure that America stays America.

President Obama was awfully vague about some of his plans, but I think I heard him say that government is responsible for educating a child from birth — from birth — to its first job. Universal pre-school and universal college. And there were hints as well of universal health care and a universal service corps. It all sounds very appealing, until you realize that these plans mean universal government. That model has never worked anywhere in the world. America is great because our society is free and the power of government is limited by the Constitution.

For the last several years, we’ve heard liberals moaning about the 700 billion dollars that have been spent over six years to win freedom in Iraq. They have now spent more than that in 30 days. And with a government almost 12 trillion dollars in debt, any unnecessary spending puts at risk the creditworthiness of the United States. If the world loses confidence in our currency, that could cause a run on the dollar, or hyperinflation that would wipe out savings and devastate the Middle Class. President Obama says he hopes to cut the deficit in half after four years—does that mean a deficit in 2012 of 600 billion dollars? No president should accept such a staggering deficit, much less hold it up as a national goal. This is the time to pare back government spending. It is not the time to fulfill every liberal dream and spend America into catastrophe.[snip]

What America does need is a commitment to reforming entitlements. I believe that Medicaid should be capped and put in the hands of the states; Social Security benefits for high income citizens who are now age 55 or younger, should grow with the consumer price index, not the wage index; and Medicare should be reformed with a dose of free-market reality. These and other reforms are essential, because if we stay on the same road, the next generation could see tax rates 50 percent higher even than ours — and that’s to pay the bills we’ve racked up for ourselves. Passing on that kind of debt to our children is not only fiscally irresponsible, it is morally wrong.

Jim Cramer: Romney "Best Business Man in North America"
by GovMittRomney