Peter Bearse, the only Doctor of Economics fighting for the chance to defeat Rep. Carol Shea-Porter in New Hampshire’s 1st Congressional District [NH CD1], says:

“GOP positions on taxes and the economy amount to little more than political pandering. If my Republican opponents have their way, our nation may be unable to sustain a campaign for victory in Afghanistan. Our economy also may not be able to take advantage of a major source of job creation.”

Two big questions on the economy are now front and center. One is whether the Bush tax cuts, due soon to expire, should be renewed. The other is: What strategy for economic revival and job creation do we need to replace Obama’s failed “stimulus”? The Republican Party answers both with a single chant: “Cut taxes.” This is irresponsible. The country is at war. Bush II was roundly criticized for not asking for our nation to sacrifice for the sake of victory in Iraq. Iraq war expenditures were handled off-budget. Tax reductions were put in place rather than tax increases. We repeated the mistake of Lyndon Johnson in Vietnam -- pretending that the nation could afford “guns and butter” at the same time. Will we repeat it again in Afghanistan and so also put Pakistan at risk? A vote on renewal of the Bush tax cuts should be viewed as a vote on the war in Afghanistan.

A blanket “Cut taxes” is also no response to a jobless recovery and the threat of national bankruptcy. The situation we now face is not comparable to that of the early ‘80’s when Reagan’s tax cuts were initiated to stimulate the economy. Entrepreneurship and innovation are now the prime drivers of economic development worldwide.

Bearse remarked:
“My opponents have a glimmer of what’s called for when they also chant ’small business’, but it’s only a glimmer. They seem unaware of data on the sources of job creation. Studies show that it’s new and early stage enterprises that provide most job creation. 64% of net new jobs arise from enterprises no more than 5 years old. And so a workable strategy for job creation must focus on promotion of entrepreneurship -- the focus of my business and professional life for almost 30 years.”

Thus, Dr. Bearse is releasing today a strategy for “Economic Revival and Job Creation.” [see attached]. None of the other seven contestants for the Republican nomination in NH CD1 offers a program or strategy to answer the crying needs in this #1 area of concern. As copycats of a national, know-nothing GOP approach that promises economic stagnation, they also reveal themselves to be the same sort of go-along/get along, party-line politicians that have lost in the past.

Dr. Bearse believes that GOP efforts to renew the Bush tax cuts should not be supported. Instead, his strategy recommends a tax credit incentive for investors to provide “patient money” investments in start-ups and early-stage enterprises. Note that his “Pledge to Constituents” [see] includes a promise to vote the way a majority of voters in the district would like him to vote. Thus, if a majority in NH CD1 favor continuation of the tax cuts, he would vote for them.