Mitt Romneys economic plan - Essay Example

MITT ROMNEY’S ECONOMIC PLAN Thesis ment America in the recent past experienced an economic crisis that resulted into a severe economic aftermath like loss in jobs, reduced output by industries and wealth reduction by individuals as well. This effect is likely to take economists decades to curb this though they are encouraged to act quickly in terms of scope and costs relayed through relative activism (Ogburn, 2009). Amidst this, Romney comes with a comprehensive and deliberate plan to curb this crisis leading to economic growth and development of the Americans not forgetting their critical welfare.

Actual plan Romney’s plan is because Americans as an agile society and world’s economic powerhouse is highly in need of its economy to rapidly come back to its knees. Romney has the target of an annual GDP growth rate of 4% per annum over the period he speculates to be in power to bring back the level of unemployment to its previous level before the crisis (Obama, 2008). This appears to be an uphill task but through the aggressiveness of the Americans and Romney’s leadership, it shall be achieved within the specified timelines.

The growth and development agenda according t Romney should and must be divided into parts as follows: - First, his regime must focus more on productivity growth through relevant policies to support savings and investments, creativity and innovation, trade activities, education and training. Secondly, the government will have to develop a budget framework that is much friendly to the financial system. Thirdly, the tax system and policies must be those, which are supportive of economic growth.

Fourth, Romney will enhance regulations that create a balance between growth and concerns related to safety and soundness of the American society. Lastly in Romney’s economic plan, he intends to create a financial system that meets if not all but most of the need of the borrowers and savers (Ogburn, 2009). As is noticeable the policy elements according to Romney have three major themes in common. First, the policies are all long term in nature disregarding the most critical economic problem.

Secondly, they are also the key t shared prosperity among the Americans apart from them being a notation of long-term policy uncertainty along the runway entitlement mode of spending. This aspect is accompanied by the threats of a hike in tax rates and increased regulation, which has the effect of limiting the extent to which international markets are accessed creating a constraint on how households and businesses spend today. Actually, Romney has proposed plan that is quite distinct from that of the Obama administration, which encouraged a shift in economic policies that encourage much consumption and government spending while discouraging investment by businesses and exportation and ultimately diminished growth amidst the crisis (Obama, 2008).

Romney argues that the growth of the US economy can even be faster than it is currently. This is quite possible if better taxation policies and regulatory framework is, established that is quite instrumental for economic growth through increased productivity. The policies that Romney intends to change are those on retirement ages, the immigration policy, and support for employment, which he largely attributes to establish and grow the labor force. In fact, it is true that these policies are broad and are the center stage for politics in this year’s campaigns but this does refute the fact that they are still critical(President & Romney, 2011).

Romney therefore devises a three-policy step that is grasp, clarity, and action to ensure their effectiveness and that they are well instituted. The structural challenges facing the US economy must be grasped well, then the future paths of the policies to effect and curb the challenges must be clear and the policies must be implemented in the smartest way possible. In his policy, Romney reiterates the fact that economic policy decisions do not depend on the mere gimmick of the GDP numbers. The instead should be illustrated on the general job satisfaction of the citizen which have been proven and tested to be higher in the dynamic economies like that of the United States.

His government will therefore establish a success path for the economy through elements such as maximized spending on research and development, policies to enhance labor force participation hence a working nation and all these ultimately translating into economic growth and development (President & Romney, 2011). Conclusion In spite of all these, we are still left asking a series of questions. He is specific such that he defines the plan within a times span of 4 years of which he speculates to have created 12 million new jobs hence plentiful of jobs , a GP growth of about 4%, rise in house prices and fast tracking the country on a path to a balanced budget (President & Romney, 2011).

This will bring the country back to its AAA rating. The dilemma is how this is achievable! References Obama, B. (2008). Change we can believe in: Barack Obama's plan to renew America's promise. New York: Three Rivers Press. Ogburn, C. (2009). Economic plan and action: recent American developments. ([1st ed.). New York: Harper. President, I., & Romney, M. (2011). Believe in America Mitt Romney's plan for jobs and economic growth (Kindle ed.). U.S.A.: [Sold by Amazon Digital Services].