LyrArc Article Gist
Glenn Hubbard says a Romney economic plan for the U.S. with tax cuts and spending restraint and reducing uncertainties over policymaking will increase GDP growth by 0.5 to 1% per year over the next 10 years. It would set the U.S. on the path to solid economic recovery by getting the private sector to generate 200,000 to 300,000 new jobs per month during Romney's first term in office. Hubbard is dean of the Columbia University Business School in New York, and economy advisor to Romney. A study by Scott Baker and Nicholas Bloom of Stanford University and Steven Davis of the University of Chicago shows that uncertainty over policy under the Obama administration reduced GDP by 1.4% in 2011, and returning to pre-crisis levels of uncertainty would increase jobs by 2.3 million in 18 months. See the Reagan memo and the interview with George Shultz, economic advisor to former President Reagan. The Shultz-Hubbard approach puts great emphasis on reducing uncertainty for business and creating the right climate for business to invest in a recovery. In this way its distinctly different from the approach of the Obama administration.