The Power of Positive Thinking (Not)

Ross Douthat has a worthy analysis of Phil Gramm’s unwise words today about our nation being a “nation of whiners” when it come to the current economic outlook. Douthat notes that Republicans tend to be economic optimists, while Democrats tend to be economic pessimists. Too much of either and you have problems.

That was the problem with Gramm’s comments today. In some case, the GOP has focused too much on the positive without seeing there are some major factors affecting the economy. Democrats tend to look at the current situation and play up the bad news. Yes, some of that can be hype, but some of it is true. When you have people losing their homes and jobs, and major corporations teetering on bankruptcy, things are not too good.

In Douthat and Reihan Salam’s book, Grand New Party, they note that today’s conservative leaders still think cutting taxes is a good idea to any economic problem even when times have changed. When Ronald Reagan cut taxes in the early 80s, tax rates were quite high. These days, high federal taxes are no longer the issue. But Republicans still lean on tax cuts as if it were 1981 all over again.

I tend to lean towards the economic optimism of the GOP, but let’s face it, simply telling people that every thing will be okay ain’t going to work. What is needed is to wed that optimism with actual ideas to help people right now.

Of course, it is a little late to start coming up with ideas in the middle of an election year when your party has been in power for 8 years is the midst of a recession. But the GOP will have to come up with some ideas on the economy for 2010 or 2012 if they want to get back to power.