On Monday, House Speaker Kevin McCarthy invoked the spirit of former President Ronald Reagan during his speech at the New York Stock Exchange, discussing the Republicans’ economic plan. McCarthy followed Reagan’s famous adage from his 1981 inaugural address, “In this present crisis, government is not the solution to our problem; government is the problem.” In his remarks, McCarthy declared that President Joe Biden is the problem in the current crisis.
Reagan also spoke at the stock exchange in 1985, discussing how government’s high taxes, excessive spending, and overregulation had thrown a wrench into the works of the free market. His administration cut tax rates, reduced counterproductive regulations, and limited spending growth, which ultimately led to economic recovery.
The growth in government spending dropped significantly during Reagan’s tenure, and the economy improved. Unemployment rates fell, millions of jobs were created, and inflation and interest rates decreased. McCarthy echoed Reagan’s sentiments, warning that government spending and intervention are causing economic malaise.
McCarthy argued that Biden’s policies have created the economic challenges the nation now faces, stating, “In two short years, President Biden, along with Democrats in Congress, added 6 trillion dollars to our nation’s debt burden – which created inflation, made us more dependent on China, and undermined Medicare and Social Security.”
The House Speaker cited the negative impact of inflation on American families, with wages struggling to keep up with the rising cost of living. McCarthy referenced Nobel Prize-winning economist Milton Friedman, who said, “Inflation is made in Washington.”
McCarthy then presented the Republicans’ plan to put the United States back on a sustainable economic path. The plan involves raising the nation’s debt ceiling for a year in exchange for three items: keeping federal spending at the 2022 level, clawing back unspent dollars allocated for COVID response, and promoting economic growth through domestic energy production and re-instituting work requirements for those receiving government assistance programs.
McCarthy emphasized that assistance programs should be temporary and act as a bridge to independence. His plan follows the spirit of Reagan, who successfully implemented economic reforms despite facing a Democratic-controlled House throughout his time in office. McCarthy’s proposals are reasonable, and following this path would be beneficial for the economy and the country as a whole.