Mixed Signals

When we send representatives to Washington, we expect them to represent us. It
is hard, however, to represent the American people when they are sending mixed signals
about what to do with the economy and government spending.

One poll by Fox News found 83 percent of voters believe overspending by the
federal government is a big economic problem. A Rasmussen poll found that nearly two-
thirds (62%) favor across-the-board spending cuts.

On the other hand, are polls that indicate that voters do not want to cut spending.
For example, a Republican poll by members of Congress only found a third (37%) who
believe that cutting government spending will create jobs. Perhaps the most significant
poll was the November election. Voters seemed to be telling politicians they weren’t too
concerned about spending and the national debt.

Let me suggest that these mixed signals result from poor messaging. Stephen
Moore was on my radio program recently to talk about his book, Who’s the Fairest of
Them All? In a recent editorial, he mentions Larry Kudlow (CNBC host) who
recommends that members of Congress emphasize that “cutting spending is a tax cut.”
Deficit spending creates the illusion that government spending is less than it is. It also
creates a demand for tax increases. In the last few weeks, we heard the president and
certain members of his administration and Congress say we need to “pay our bills.”

Members of Congress should explain that cutting spending will be a tax cut for
taxpayers. They should also start emphasizing growth in the economy rather than
shrinking government. This model worked very well for Representative Jack Kemp and
others in the 1980s. Emphasize growth initiatives like tax reform, energy drilling, and
suspending onerous bureaucratic regulations.

The American people may not be sending mixed signals. They would be more
willing to reduce government spending if they can see how it would result in a tax cut for
them and grow the economy for everyone.

Leave a Reply

Your email address will not be published. Required fields are marked *