According to the polls summarized by RealClearPolitics, Mitt Romney has been unable to win more than 25% of the Republican vote for the party’s presidential nomination for more than a year. This is because the former Massachusetts governor is not a pro-growth Republican. Instead, his economic platform reflects a man who is devoutly Keynesian, and who, as president, would not be able to reinvigorate the U.S. economy.
A pro-growth Republican is a “supply-sider” who believes that stable money, low taxes, and limited regulation produce prosperity. And as Art Laffer has said, if regulatory policy is important by a factor of 1, then tax policy is important by a factor of 10, and monetary policy by 100.
The purpose of these bedrock principles is to encourage capital formation, and thereby raise the national standard of living. The virtuous, supply-side process starts like this: 1) low taxes increase the amount of capital available to invest in businesses; and, 2) stable money, low tax rates, and limited regulation increase the after-tax returns on investment.
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