Some conjectures

I guess the depressing turn of recent events has put me in somewhat of a conservative bashing mood.  Anyway, here are a list of conjectures (not all necessarily wrong) that I think many Republicans in congress would agree with.  At the very least I think they’re fairly conventional sentiments within the Republican party.

1. Government is a leviathan.  Once a program is implemented, it is taken over by special interests, often to the detriment of its stated goals and it is then difficult/impossible to get rid of.

2. The budget for defense should never decrease in absolute terms (or perhaps even relative to GDP).

3. Free trade is good policy, as it increases the efficiency of the economy.  It’s a myth that protectionism provides jobs- it simply changes the complexion of the jobs available.

4. Letting the F-22 die was a mistake.  It created jobs for Americans and those will be lost now.

5. Government spending does not create jobs.  When the government spends money while in deficit, people see the implied future taxes, and simply save more.  There is no effect on output (or even a negative one since government is so inefficient).

6. Lower taxes raise revenue, or at least raising taxes will not increase revenue.

7. (Again) Government spending does not increase output.

8. Loans made by Freddie and Fannie to low income people led to an orgy of sub-prime lending and caused a massive housing  bubble.

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