Mitt Romney claims he is better for the country because of his business background. This is based on the conservative idea that government should be run like a business.
So the question then becomes, how have companies successfully emerged from this recession? Ford is a good example given its size, debt issues and near collapse leading up to the great recession. Losing millions of dollars a year the company went deep into debt and cut costs by eliminating employees and shuttering unprofitable plants. This part of the Ford recovery plan is very similar to what the U.S. government has done so far reducing government spending by an average of 1.4% per year under Obama after inflation and cutting government personnel by around 600,000 employees.
But that is where the similarities end. Unlike the federal government, Ford has actually increased the cost of its products and reduced incentives, boosting their profit by about $2,000 per car. Yes, running the government like a company requires that, as the economy improves, the costs of products and services increase or in terms of the federal government, taxes increase.
Suggesting a tax increase, of course, elicits cries from the right of already being overtaxed by the most radically socialist president this country has ever seen. Ignoring the ignorance of this claim it should be noted that according to the Heritage Foundation we are currently near record lows when it comes to tax revenue and tax rates.
These same people also claim that any increase in tax rates will have a detrimental effect on the economy. Ford, however, seems to have experienced no such correlation. Their increased prices have not produced a slowdown in sales. In fact sales are still increasing.
No businessman worth his salt would run his business like the Republicans are attempting to run the government. Even Mitt Romney raised an additional $750 million in revenue from taxes in his time as governor. The reality is that these people don’t want to run the government like a business. They want to run the government into the ground.