Here’s a little something to read while you’re drinking beer and eating pizza.
This was something that came up on The Right Hook this past week. We noticed that with the speeches at the NY GOP Convention and a few interviews since then, David Malpass seemed to be the only one discussing and having a grasp on the issue facing both the state of New York as well as the country. However, there is the caveat that he has more opportunity to discuss them between interviews on CNBC and Fox Business as an analyst, as well as writing for the Wall Street Journal and Forbes.
Forbes is the reason for this blog post, because while we wait for others to speak more in-depth about policy, Malpass does what many of us are looking for more Republicans to do: a) sound like you understand what you’re talking aboot, and b) provide solutions. Take small businesses for example. After going in depth on how Washington (i.e. Democrats) are failing small businesses, he gives examples on how to fix the problem…
–Stop the Jan. 1, 2011 tax hike (along with spending hikes). “What could a slight increase in taxes have to do with jobs?” asks Washington’s tax-and-spend culture. Ronald Reagan cut through the economic mumbo jumbo: “You can’t be for big government, big taxes and big bureaucracy and still be for the little guy.”
–The Fed should make a clear commitment to stable money to reduce the swings in interest rates and inflation. Instead it champions and flaunts unstable money. This encourages momentum trading and the growth of derivatives. Meanwhile, layers of financial regulation make Washington bigger and more powerful but don’t fix the underlying problems.
–Instruct bank regulators to use judgment in assessing capital adequacy for loans to governments and big businesses (now assumed to be ultrasafe) and small businesses (assumed unsafe). Regulators are hiding behind arbitrary trend-based pricing projections from accountants and oligopolistic bond raters instead of using experience or historical payment trends. The result: Banks lend riskily during booms and swing to excessive caution during downturns, making the swings worse. The financial system channels capital to larger businesses and the government at the expense of small-business lending.
I recommend giving the whole article a read!