The Republican leadership (whoever that is) has a problem. The party has lost power across the board in Washington D.C. and in many states. The politicians in the party are divided over what needs to be done to regain power. Some advocate a return to conservative principals, neocons still push national defense as the primary issue, and still others believe the party must take a small turn to the left.
The top of the party is clearly divided, and the Democrats love to talk about it. The media is also reporting on this divide and the lack of a clear leader. As the owner of a political website, and someone who spends a good bit of time on political websites like u4prez.com, freerepublic.com, and other sites with political discussion like digg.com and reddit.com, I've discovered that the rank and file Republicans aren't so confused. Gay marriage, and a handful of other social issues may be areas of concern, but the grass roots is strongly united on fiscal responsibility and low taxes.
So how did the Republicans lose so much, so quickly?
The mistake the Republican leadership is making has its roots at the dawn of the Reagan administration. Since the 1980s, the party has defended its free market position without defining exactly how free markets work in an economy, and how a free market capitalist society is defined. The Democrats have exploited this fatal flaw, and allowed the Republicans to be defined as pro business, while the Democrats define themselves as for the working poor and middle class. Recent events have shredded this notion, and it has become clear that the pro business (at least big business) party is clearly the Democrats. The mistake is this:
The free market is determined by the people who buy things, not the people who sell them.
How do Republicans fix this?
To regain confidence, and start winning elections again, the Republicans have a bit of teaching to do, and a bit of marketing. They will need to explain to the American people not only why free markets are not pro business, but in fact, how the free market system is the only system that is actually designed to give the power to the people. It's not that free marketers are anti-business, it's just that government has no responsibility for ensuring a businesses success. General Motors and Chrysler went bankrupt because the people of the United States told them they must go bankrupt. Their products were deemed by you to hold less valuable than Ford, Toyota, Honda and other competitors. The bailout of these companies at the hands of the Bush and Obama administrations was clearly against the will of the people.
The Republicans must explain the principles of free market capitalism and uphold them vigorously. When the citizens stop buying products or services from a company, the company must fix the product/price value, or go out of business. Neither the government nor the executives at General Motors decide what type of car to make, and how much to charge for it. Under free market capitalism that job belongs to the people.
The people should decide not only what kind of cars are built, but also what kind of crops are grown, what kind of health insurance policies are created, how much debt a company can hold, and how much we pay for any good or service. When the government attempts to regulate or control business, it is granting a benefit to one business over another. Some regulation is necessary. In a complete laissez-faire capitalist system, there would be no safety regulations, and this of course would be dangerous. But we can still have free markets, and freedom cannot exist without free markets.
You don't have much power. It's a hard pill to swallow, but its true. Local state and federal governments along with the judicial system arbitrate much of your life. But the power you should have, is the power over what you do with your money, which is the fruit of your labor. You have the right to decide if GM, Ford, Citibank, or the small hardware store on the corner goes bankrupt, or otherwise out of business. This right is one you must fight for, or you've lost everything.
But there is more to it than just your freedom to decide what you buy and how much you pay for it. Republicans have also missed an opportunity to show why free markets are more efficient. No group of government employees can put the wide variety of products on the shelf as efficiently as the people. When the free market decides that we don't want to eat asparagus anymore, the grocery store figures it out in a matter of days, and stops buying asparagus from the asparagus farmers. The farmers quickly realize they must change crops, or they will be out of business, and prices are kept low. When the government decides, it takes meetings, the collection of data from different sources and regions, and one must navigate the political waters. If asparagus farmer A, donated to the politician, he is going to be subsidized, with your money. You'll pay for the asparagus whether you want it or not. We see this unfolding with the auto dealers who are being shut down.
The Republicans have told the American people for thirty years that they are in favor of less government intervention in business, and more free market capitalism. Now it's time to tell them why.
The opportunity to show clearly that free markets (and thus the Republican party) are the party of the middle class, and that big government intervention is pro big business is here. The evidence is in front of every American, every day. If the Republicans lose this opportunity, they will never get it back.
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I hope both parties lose. They are both responsible for the recession. Neither country has passed a law that has made America a better country in at least 45 years. Both parties are corporatist and both parties have elected Supreme Court judges who have consistently favored the state over the individual in recent years.
which is why Democrats will win again, because of "Magic Underpants" Rommney is what republicans think will get them back into the whitehouse then I hav some prime property in the North pole to sell you!!
I agree with you Kemp. When Republicans lose elections they believe that they need to go more to the right with their next selection. They did that in 1980 and 2000, both were successful, but it won't be in 2012. The country has changed. Thats why I think Romney is the favorite to win the nomination.
Obama won BECAUSE people no longer buy the bullshit you and the other lame ass republicans are selling. THEY DO NOT BUY THE VIEW THAT GOVERNMENT IS BAD, wake the hell up, the election is over your side lost, not shut the hell up and come up with NEW IDEAS, you do know what those are don't you Kemp aka "Buckley Jr" wannabe?
and your goofy ass republican mantra clearylt doesn't allow for rational thought, why are you trying to pretend you're the second coming of William F Buckley, because you're certainly not. Your post mentioned nothing I commented on, which goes to show that relaity and republicans are two things that DO NOT GO TOGETHER!
Rarely do I acknowledge the hyperbolic and profane rants lunatic heavy metal artists known as Liberal411 but since I already answered his question and since his grammar school level of reading comprehension prohibits him from comprehending what he reads, I shall point out that the answers that his liberal thinking process forces him to so eloquently ask are in fact answered in the same post he questions. Ibebe-de that's all folks.
Kemp says, "The Republicans must explain the principles of free market capitalism and uphold them vigorously"...OH YES PLEASE I beg republicans to do just that very thing. Explain to millions of Americans how their 401 is wiped out because of the wonders of the free market, Please explain to the millions whose savings was wiped out by Bernie Madoff and how de-regulation from the Free Market couldn't catch this dude for 10 FUCKING YEARS!! Please explain to the millions of Americans whose homes have been foreclosed because of the greed of wall street and the free market which failed to correct or police itself.....OBAMA won BECAUSE republicans and their de-regulated, free market BULLSHIT FALIED THEM!!!
I believe that this post is a very truthful and honest assessment that contains a great deal of accuracy. The most ripe statement in it though is the one that reads “Republicans have a bit of teaching to do”. I believe that Republican leadership first has a lot of learning to do. They must realize that as both party leaders and elected officials they will never win over liberal voters or African-American or Hispanic voters simply by trying to moderate conservative policies, including conservative fiscal policies. If they can learn that and stop trying to alter proper policy for the purpose of political expediency than maybe the teaching of others can begin. What must be taught is not just the fact that free markets should be as free possible, but that proper regulation can be appropriate while overregulation is devastating. For example, compelled by the losses of investments made in Enron, in 2002, Congress and the President created the Sarbanes-Oxley Act. The bill wound up costing businesses that want to go public, $4 million dollars. Initially compliance with the Sarbanes-Oxley Act was projected to cost businesses, about $91 thousand dollars. This pushed the start up time for businesses from five years to twelve years and it is adding to the stagnation of a much needed rate of growth for our economy. Thus, the attempts of the Sarbanes-Oxley bill which was meant to correct a problem through government regulation actually made things worse. Than of course there was the infamous Clinton Homeownership Act which required banks and loaning entities such as FannieMae and FreddieMac to enter into high risk loans that could not be paid off. All of which helped to usher in the banking crisis that led the way to our current financial crunch. On the flip-side after Democrats refusal to pass legislation that would have changed their own accounting practices of FannieMac and FreddieMac, the need to bailout them and the entire economy out was ultimately discovered. So the point is that basic government regulation which insures proper recording practices and effective protections for investors are appropriate but those regulations must be effective but as limited as possible. More often than not, overregulation causes prices to rise and introduce roadblocks that produce devastating economic results. The Clinton Homeownership Act is the best example of the point. The bottom line is that there are some Republicans out there who know all this and are principled enough to lead with that lesson in mind. Newt Gingrich, John Kasich, Fred Thompson, Mitt Romney, these are but just a few names who consistently address and highlight the awesome power and opportunity of the free market and free enterprise. Problem is, the message is not coordinated. If all current elected Republican officials coordinated this same message, it would become a theme worthy of trying to convince all Americans of.
The Republicans could easily bounce back. All they ahve to do is shut up the grassroots, get Limbaugh off the stage send away Cheney, Palin, Gingrich and so on. If they oushed people like Colin Powell, Mitt Romney, Tim Pawlenty and Mark Sanford to the front of ther party, they may have a chance to cling to life. I doubt they'll do this and i hope they don't because I like the Republicans being out of power, but in reality, thats a way they could regain some ground.
you are an idiot gurr. Ron Paul has defined and has taken the steps necessary to convey this message. however, it has been the incursion in the markets thru price controls, tax incentives and stimulus checks that has created a high inflation situation. couple this with the clintonian mistake of eliminating requirements for credit for everything from college tuition to credit cards and you get the uber inflationary climate we are in now. with savings at record lows and banks slamming shut he water well of money you get a recession. save a few trillion dollars and allow the market to work as opposed to interfering with natural economic flow.
"The free market is determined by the people who buy things, not the people who sell them." Interesting. Demand-side Keynesian economics is a traditionally Democratic viewpoint.
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