Abandoning the 1980s: A Strategy for the GOP

by | Sep 14, 2021

Abandoning the 1980s: A Strategy for the GOP

by | Sep 14, 2021

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In 2022, the Republican Party has an opportunity to not just win back the House of Representatives but for the first time in a hundred years repudiate the constant creep of statism and Marxism eroding our liberties. But the GOP needs to drop its 40-year plus “game plan.” To be blunt, it is time to drop “cutting taxes,” “increasing defense” budgets, and giving lip service to federalism and limited government. The greatest threat to liberty, living standards, and our natural rights has been driven by deficit spending. We expect Democrats to continue with socialism and authoritarianism but Republicans, by essentially feeding the “beast,” have contributed as much to our current mess.

Recently, Paul Ryan, the epitome of the simplistic 1980s playbook, is back in the news. Media pundits are asking what path the GOP should take, a return to Paul Ryan or Kevin McCarthy? The former pushes pseudo “wonkism” and the latter just follows the fickle winds without any true course. Neither have a path that ensures our liberty or prosperity.

What needs to be done isn’t a return to the compassionate conservatism of Jack Kemp, because “supply side” economics had the same impact as “demand side” Keynesianism; large deficits, enrichment of the well-connected, constant growth of “complexes” (military, education, healthcare, financial, and now security), deindustrialization of America, and a profound loss of honesty, integrity, and finally, our liberty.

The objective for true change and a return to freedom must start with cutting, and eliminating deficit spending. Federal tax cuts cannot even be considered until surpluses are obtained.

Why is eliminating deficit spending the key objective?

  1. It destroys our industrial base. Federal deficits are primarily funded by the Federal Reserve printing money out of thin air. This would normally create inflation which impacts the average American’s standard of living. But with China as the off loader of our printed money, the federal government was able to launder the debt to a country which is fine “eating” our inflation as it continues to export trillions of dollars in goods. Flooding our markets with cheap goods devastated much of small-town America as factories closed by the tens of thousands. It was mutually beneficial; the Chinese communist government could round up those pesky rural peasants to factory towns to be well controlled and through currency manipulation provide American with cheap goods that Americans could buy with lots of credit (see Federal Reserve below).  Dollar stores replaced factories in small town America but the federal government enjoyed the Chinese buying just enough federal debt with their dollars to keep things from getting out of control. COVID-19 and the insane amount of money printing and spending has ended this short term pause on inflation. Real free trade is good for America but than means no subsidizes, no tariffs, and no pegging to the dollar.
  2. It allows for perpetual war. If the federal government had to raise taxes to pay for the idiotic wars since 2001, the tax “pain” would have forced their end before trillions were printed and spent and $80 billion in weapons were left for the Taliban.
  3. It subsidizes unprofitable industries and creates higher prices. The military-industrial complex, the educational complex, the healthcare complex, and security state are enriched through government privilege and protection from competition. The results are constantly rising prices and an opportunity cost of real growth benefiting real Americans.
  4. It drives wealth inequality. In a free-market, inequity is a sign of freedom but since 1971 (the year Nixon closed the gold window) the printing of money to fund big government and buy votes has primarily benefited the financial sector along with the other “regulated industries.”
  5. It feeds the growth of “wokism” which turns America into warring tribes.

The second target should be the enabler of all of this. Yes, the one who can’t be named: the Federal Reserve System. It is time to “End the Fed.” No more interest rate manipulation. No more money printing to directly buy federal debt. Credit can only come from savings, not thin air. There is no reason for the Federal Reserve to exist in 2021 (at least based on it’s supposed roles). Blockchain and changes to time and demand deposit rules would replace the need for the Fed.

Do these two things—end deficit spending by cutting government and shut down the central bank—and the Republican Party can turn back the tide of government growth. This is what the GOP stood for under Warren G. Harding, Calvin Coolidge, and even Dwight D. Eisenhower.

It’s time to move on from the 1980s playbook. And that time is now.

Mike Fedele is a college graduate with a BS in Chemistry and a Master of Business Administration, and works as a product manager for a medical device company. His personal claim to fame is developing FedEx’s “Hold at Location” service.

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