The Economy

It is beyond argument that the hyperventilating economy is a drag on Republicans—and in consequence Sen. McCain—this election year. Further deterioration will only exacerbate that fact and Sen. McCain and his campaign need to remain on top of the issue.

It is entirely appropriate and beneficial that he is abroad right now, demonstrating his command of the foreign policy sphere and his qualifications to be commander-in-chief; but if it is not already than the economy is likely to be the preeminent issue of concern in the campaign, and disproportionate emphasis on foreign affairs runs the risk of neglecting that which is of the most concern to the voter. This cannot happen. Peter cannot be robbed to pay Paul.

In the coming weeks Sen. McCain needs to be out in front talking about the economy, acknowledging its perilous state in the present and demonstrating that he understands the concommitant apprehension among Americans. He needs to identify the general objectives his administration will pursue economically and some specific policies and programs tailored to curing what ails the economy at this time. His economic advisors and surrogates need to be running the cable news, radio, and Sunday morning gauntlet doing the same.

Most importantly, Sen. McCain needs to get above the Democrats on this issue. Their two presidential candidates propose immense government solutions to the economy, which they promise will be the solution to its deficiencies. But there is only so much oxygen in the atmosphere and the more government consumes the less there is for the economy and the market to grow and prosper. Sen. McCain’s requiem is to demonstrate this. Persuade Americans that there are real problems with this economy but that the Democrats’ prescriptions will not rectify but only aggravate them. The Democrats’ economic program aims to empower the federal government, his seeks to empower the American people.

A specific example of how I would have Sen. McCain approach the economy and his Democratic opponent regards trade. In I think every single speech I have heard Sen. Obama deliver on the campaign trail he has promised to end tax loopholes for American companies that ship jobs overseas. But why, Sen. McCain should ask, do these companies outsource? Because labor costs are cheaper in those foreign countries. Closing tax loopholes and otherwise raising taxes and attacking American business will not stop outsourcing but only create greater incentive for them to practice it even more.

Sen. McCain can be aggressive on the tax issue from another angle as well. As Jeffrey Bell wrote in his excellent article in last week’s Weekly Standard, he “can note that Democrats insisted [that all the Bush tax cuts] expire, a fact that is now causing uncertainty among workers and investors as stiff tax increases loom ever closer.” He must look at the Democratic nominee and “demand that he [or she] explain how leaving the prospect of stiff tax increases in place will help today’s economy and stock market.”

Sen. McCain and down-ticket Republicans cannot alter the fact that the economy will be a burden on them this year, so long as Americans feel burdened by it themselves at least. All he and they can do is tackle the issue aggressively and forthrightly, acknowledging the economy as it is, promoting reasonable policies and approaches, and convincing the voters that Democrats don’t have remedies, only prescriptions for further aggravation. Do this successfully and we just might win an election.