Republican Extremist Gets High Marks from Washington Post

April 21, 2016

The Washington Post gave high marks to Ohio Governor John Kasich after he met with the Post’s editorial board. The lead editorial noted that Mr. Kasich, “does not dismiss science.” It goes on to point out that he recognizes that climate change is human caused, although he has no plan to address the problem. (Kasich does reject President Obama’s plan, as the piece notes.) Editorial writer Charles Lane was even more effusive, asking readers, “what’s not to like?”

People who follow politics and economics would have little difficulty answering that question. For example, Mr. Kasich signed a bill prohibiting the state of Ohio from contracting for health services with Planned Parenthood or any other organization that performs abortions. Kasich also has bizarre views on economic policy.

In addition to supporting tax cuts for the rich, which the Post criticized because of the impact on the deficit, Kasich also criticized the Fed for its quantitative easing policy. According to Kasich, this only led to companies “buying up more of their stock and making the rich richer.” It is difficult to envision how Kasich thinks this process works.

Most immediately, quantitative easing leads to lower interest rates. For believers in economics, this lead to more borrowing for things like buying homes and both public and private investment. It also frees up money for homeowners who refinance their mortgages. This allows them to spend money on other things. Lower interest rates also mean a lower valued dollar, other things equal. This makes our goods and services more competitive internationally, reducing our trade deficit.

All of these things create more jobs, which also puts workers in a better position to get wage gains. It is true that lower interest rates can also make it easier for companies to borrow to buy back shares of stock, although it is pretty bizarre to find a Republican who would argue against a policy that leads to more growth and jobs, just because it can increase the wealth of the rich. (Low interest rates also help to raise house prices, which are the main source of wealth for the middle class.)

Anyhow, the Post apparently thinks great things about a candidate who seems to have zero understanding of economics and has no ideas on how to address a potentially catastrophic environmental problem. It is worth noting that he proposed tax cuts, rather than tax increases for the rich.


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