Huckabee's Economic Stimulus Plan

First, a note on Michigan. I'm sad that Huckabee didn't win, as the polls indicated he might a few weeks ago, but I'm glad that Romney broke McCain's "momentum." This should deflate the McCain bubble and give Huckabee a better chance at winning South Carolina on Saturday. It's do-or-die time!

Romney seems to have won Michigan because of his conversion in the past week to the idea that the economy is hurting and maybe the government can do something helpful. In Romney's case, that "something helpful" is promising to shovel billions of dollars to Michigan in corporate welfare while mandating health insurance coverage for every American, thereby saddling the whole nation with similar health care costs as the auto industry. I guess Romney has decided that buying elections with his own money wasn't working too well, and buying an election with the taxpayers' money is cheaper for him and apparently more effective too.

Meanwhile, Mike Huckabee, who has been characterized by certain quarters as an "economic liberal" for having acknowledged the looming economic problems months ago, has put out an economic stimulus plan that addresses the struggles of the entire nation. Called the "Fair Deal," Huckabee's plan is both forward thinking and remarkably, well, conservative in its economic tone.

First off, Huckabee explains that "I know that Main Street, as well as Wall Street, is threatened by a weakening economy. But we are all in this together." Doesn't sound like John Edwards to me...

Principle 1: Strengthen the economic health of middle class families. Eliminate the marriage penalty. Cut taxes on savings. Make the Bush tax cuts permanent. Stem the tide of housing foreclosures. Cut bureaucratic red tape that hampers small businesses. Open new foreign markets for exporting U.S. products and services. (Weird! I don't see anything about capping executive pay or raising taxes on the rich.)

Principle 2: Work with the Federal Reserve to take a balanced approach to stave off recession while not encouraging inflation. (This is the key short-term element of the plan.)

Principle 3: Create jobs by building up the strength of our military, borders, and critical infrastructure. We desperately need to do these things anyway for the safety of our nation. It so happens that getting them done creates new jobs too.

Principle 4: Invest in energy independence. Not just for cars to buy Michigan's votes, but for all forms of energy, to get us off dependence on foreign oil entirely.

Principle 5: Make the tax system more competitive. Of course Huckabee advocates the Fair Tax, but recognizes it will take a long time to get there. In the meantime, reduce counterproductively high personal and corporate income tax rates and eliminate the death tax. (Super weird--he even wants to reduce taxes on the rich!)

The great thing about this plan is that it is balanced and addresses the long-range problems that are causing economic security and the move toward a recession. Some on Capitol Hill are proposing band-aid stimulus ideas, like retroactive tax cuts for 2007 to put rebate checks in people's hands this spring. A rebate check is nice and all (just got one from Sears tonight) but it doesn't address the core insecurity. For families that are really struggling it pays their fuel bills for a couple of months, and then what? For people who aren't as strapped, maybe they'll go out and buy golf clubs like someone I know did with his 2002 tax rebate check, but a tiny, temporary spike in consumer spending isn't going to cause employers to hire more people or give raises or stem the tide of home foreclosures.

Huckabee's plan is designed to address, over the long haul, the core problems of stagnating wages, rising energy costs, and an anti-family tax system. Bravo, Governor! If only our country could get past partisan hatred and pigeonholing to actually enact such sensible solutions!