First, Romney said his policies would help U.S. growth accelerate to 4 percent annually. Gutsy. Recall how Tim Pawlenty was mocked mercilessly for setting a 5 percent growth target. Overall, U.S. GDP growth has averaged 3.3 percent the past 50 years. But many economists think aging America will need to settle for growth closer to 2 percent long term. Romney, however, seems to agree with consultant McKinsey that a higher retirement age and smarter immigration policy, along with smarter regulation and pro-investment tax policy, could allow the U.S. to maintain its historic growth rate, if not higher. More importantly, the target represents a rejection of the declinist mentality.
Second, Romney has basically adopted Paul Ryan’s Medicare reform plan — helping seniors pay for private insurance — with the twist of giving seniors the option of sticking with a government program. By embracing a pro-market, patient-centered approach, Romney has invited Team Obama to attack him for trying to “privatize” Medicare as surely as if he advocated phasing out the system entirely. Another bold call.
Third, Romney proposed capping government spending at 20 percent of GDP and cutting $500 billion from government spending during his first term.