Budget
Gingrich claims that he would be able to balance the national budget within five years of taking office, pointing out how he was part of the team that successfully produced four surplus budgets between 1998 and 2001, paying off $405 billion worth of federal debt in the process. He envisions a new Contract with America, the manifesto he co-authored in 1994 that was the blueprint behind the Republicans sweep of both the Senate and House of Representatives that year. The key, according to Newt, is creating favorable economic conditions that would generate jobs and bring down unemployment figures to a marginal 5%.
Deficit and Debts
Gingrich questions the commitment of the Democratic leadership in deficit reduction, accusing them of misleading the country. He contends that deficit reduction and a surplus budget is possible, claiming that the 1994 Republican’s Contract With America manifesto as the thrust behind the late 90’s surplus budgets.
“It’s not often that I quote the liberal Center for American Progress, but they’ve come up with a term for the Washington liberals posing as budget cutters that is perfect: Deficit peacocks. As opposed to deficit hawks who are the real fiscal conservatives, deficit peacocks strut around pretending to cut spending through gimmicks like spending freezes that are “freezes” only in the sense that they “freeze” into place previous frenzied spending binges … By pretending to be budget cutters, deficit peacocks engage in an old liberal trick. They promise future spending cuts while approving massive current spending. Then, later, they demand tax increases to pay for all that spending… Today, deficit peacocks are strutting all over Washington. House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) and President Obama could all cut spending if they wanted to, they just don’t want to… When I was Speaker, we kept our promise in the Contract With America to balance the budget. We balanced the budget for four consecutive years for the first time since the 1920s. And we did it while paying off $405 billion in federal debt, lowering taxes, and increasing defense, intelligence and scientific research funding. It can be done, Mr. President. We don’t have to mortgage our children’s future to pay for our present.”
February 3, 2010, Deficit Hawks vs. Deficit Peacocks, HumanEvents.com
Policy
Gingrich frames his economic policy using a five-point plan.
Eliminating the National Labor Relations Board, replacing the Environmental Protection Agency and repealing ObamaCare.
Cut regulations on financial institutions
Employing a fiscal policy that is based on Reaganomics
A one-year tax moratorium, coupled with the elimination of capital gains tax and bringing down the corporate tax rate to 12.5%
Limiting unemployment benefits to a maximum of four weeks
"A Newt Gingrich presidency would see sweeping tax cuts, 'very serious deregulation and stringent limits on unemployment benefits after four weeks… I think these kinds of steps would move us toward a very dramatic job growth, which is the best way to move towards a balanced budget—by getting people off of unemployment, off of Medicaid, off of food stamps, get them back into earning a living and paying taxes… Washington would like to raise taxes because Washington would like to spend more money. The American people know this country is not undertaxed, this country is overspent… Instead of spending $140 billion a year for people to do nothing, you'd be spending most of that $140 billion retaining the American work force, making us more competitive in the world market, making us able to compete with China, Germany and India.”
