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Friday, May 08, 2009

"Should The GOP Forget Reagan?"

Should the GOP Forget Reagan?
By DANIEL HENNINGER

The Republican Party's unending tale of woe sounds like a friend's account of sitting through the New York Yankees' 22-4 loss to the Cleveland Indians at the new Yankee Stadium April 18.

In the 14-run second inning, three Indians hit home runs into the right-field seats, including a grand-slam. One ball hit a woman in the head because the fans had stopped watching the game. A nasty fight broke out in the stands. After the fourth inning (16-2), the subway trains taking Yankee faithful back to Manhattan were packed. Republicans know the feeling.

Rookie President Barack Obama has been pounding policy after policy through the Republicans' hapless defense. His approval is out of the park. He's teeing up his first Supreme Court appointment. Al Franken -- in a "say-it-ain't-so" moment if ever there was one -- is close to giving the Democrats a filibuster-proof Senate majority. And Republican voters are heading for the exits, with a puny 31% willing to tell a pollster they belong to the party.

During downturns in sports, three rules of thumb are: Don't panic, stay within your game, play to your strengths. This being politics, the Republicans naturally are violating all three.

Former Florida Gov. Jeb Bush made headlines last weekend suggesting it's time for the party to get over its glory days: "I felt like there was a lot of nostalgia and the good old days in the [GOP] messaging. I mean, it's great, but it doesn't draw people toward your cause." Joyful Democratic bloggers put this more clearly in five tight words: GOP Needs to Forget Reagan.

Is this true?

The answer to that historic question is an apt subject this week as the GOP, looking for a path from the wilderness, says farewell at National Cathedral tomorrow to Jack Kemp, who remained a Reaganite to the end.

Jack Kemp, anyone who spent time around him will tell you, stayed on message. That message, like Reagan's, had a number of parts, but it is not possible to even guess how many times Jack Kemp summarized his explanations of that message in three words: "Work, save and invest." Republicans should think hard about building a governing philosophy on the foundation of those three words, ideas that most voters understand.

The full Kemp phrase, of course, was "incentives to work, save and invest." Those incentives were to be the result of a government willing to admit the social benefits of modesty -- in taxation and regulation of the economy. For now, the American public has elected an immodest government. This government says that circumstance forced it to spend $787 billion on stimulus. Its $3.5 trillion fiscal year 2010 budget, however, will by choice take spending to 25% of GDP next year.

Last weekend, House Minority Whip Eric Cantor began a GOP "listening tour." What's to hear? People want what they always want: a job that will let them build a life and family. What they want from Republicans is leadership toward that goal.

Today Mr. Obama releases the details of his $3.5 trillion budget, his path to the same goal. Rather than drown as usual in this accounting morass, Republicans should contrast the Obama-Pelosi budget with the Reagan-Kemp philosophy of how a striving nation works, saves and invests.

Republicans can start by taking the time to read the first Obama budget document, "A New Era of Responsibility." The word "investment" occurs over 140 times in its 142 pages. But this "investment" isn't private capital invested in private start-ups, what Mr. Kemp constantly called "entrepreneurial capitalism" and what most parents hope their children will join. Mr. Obama's document genuflects to "the market economy," then argues that it won't endure unless we "sacrifice" (through tax increases) to make "overdue investments" (which literally only means public spending) on four explicit goals: green energy, infrastructure, public health care, and education.

This calls to mind the way Japan's Ministry of International Trade and Industry guided that economy from 1949 to 2001. The Obama-Rattner strategy for GM and Chrysler -- a rescue if the companies agree to the government's desire to build more small "green" cars, presumably sold with a large tax credit -- is industrial policy.

Why be postwar Japan?

It is not conceivable that a Reagan or Kemp would have directed the U.S. economy's legendary energies into building hybrid cars, windmills and bullet trains. It would not have occurred to them that America's next Silicon Valley -- Apple, Intel and Oracle -- could grow out of "investments" listed in the federal budget. This would not have occurred to either man because their politics were rooted in the 300-year-old, singularly American tradition of individuals freely deciding how to spend their productive hours and money inside a public system that mainly provides security and safety.

Mr. Obama won the election and deserves time to see what his vision adds to the nation's productive life. If while it awaits that, the Republican Party can't renew what Reagan and Kemp gave them, its listening tour could last a very long time.

Write to henninger@wsj.com

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