It’s been many months since my last entry, and the time off gave me some room to think about various issues without being constantly bogged down by marginal developments of politics and other issues shaping the world. Now, with a clear mind, I would like to tackle one of the 2010 U.S Election issues, which is the Republican message of smaller government and cutting taxes.

The Republican criticism against the Obama administration has been rooted in the administration’s response to the financial crisis. The bailout for the financial institutions while the enormous cost of Health Care facilitated the talking point that the Obama administration is for big, inefficient government and higher tax rates, which would hurt the folks of America. The not so positive job numbers probably convinced a lot of independence to side with the Republicans for this election.

With all the Keynesian economics aside (I actually haven’t read the original text by Keynes on this matter – just like most people who are supposedly fans of Keynes), let us assume that the theory sounds good. Then, the problem lies with details. Where in the U.S. government’s budget are the Republicans willing to cut?

With all the talk, specific details on the budget cut to achieve smaller government have not emerged. In realistic terms, I do not think you can merely cut spending to decrease the government’s debt, because the amount of budget cuts needed to achieve such feat (if it is even possible) is too politically unpopular for the majority of voters. Who wants to cut social security when the Baby Boomers are the sizable voting bloc and recipients of the social program?

If Republicans cannot cut enough programs to restore “fiscal responsibility” then there is another problem in the extension of tax cuts issue. If we extend the tax cuts, then there is less revenue stream for the Federal Government. At the current condition, the government is currently running on a budget deficit. If the tax cuts are extended, then the deficit of the Federal Government will continue to grow, which is the condition that the Republicans have been campaigning against.

I am not a fan of the Democrats, and they have serious issues as well. However, the Republicans’ proposals are laughable at best, depressing at worst. Once they know that they cannot carry out their campaign message, I wouldn’t be surprised by their move to shift the debate away from small government and tax cuts to another issue that they can score political points.