Whe[n] Obama was denied bipartisan support, people worried about liberal overreach. But his bipartisan successes have suddenly persuaded the public that he is more moderate. And yet his fundamental approach -- combine center-left and Republican solutions -- has been more or less the same throughout. He offered deals on health reform, just like on taxes. But they were rejected. The main difference is that Republicans signed on to the post-election initiatives, making them look "moderate" in comparison to the previous ones.
President Romney would have provided support to troubled banks--capital injections and stress tests--but he would have avoided even a few targeted nationalizations of the banking system: he is, after all, a Republican.
He would not have pushed the Treasury to engage in large-scale quantitative easing through the Public-Private Investment Program or large-scale mortgage restructuring through the HAMP home mortgage modification program.
On monetary policy, Romney would most likely have reappointed Ben Bernanke and let the Federal Reserve proceed as it wished. On fiscal policy, Romney's Chairman of the Council of Economic Advisers, Mark Zandi, and his National Economic Council Director Douglas Holtz-Eakin would have proposed a fiscal stimulus package that was 60 percent tax cuts and 40 percent spending increases. The Democratic Congress would then have bargained with the administration to produce a stimulus that was 40 percent tax cuts and 60 percent spending.
But, of course, all these policies are exactly what Obama and the Democratic Congress actually enacted.
On global warming, Romney would have abandoned economists' preferred Pigovian carbon tax for the complicated, corporatist and business-friendlier approach of a cap-and-trade system; but he would have been no more successful than Obama in assembling a Senate coalition to achieve anything.
On healthcare, Romney would have taken his signature Massachusetts health care reform and expanded it nationwide: we would have RomneyCare. But that is precisely what we do have.
I see only two key policy differences between RomneyWorld and ObamaWorld. Had Romney been elected President in 2008 we would not have repealed the military policy of "Don't Ask, Don't Tell." And had Romney been elected President in 2008, Elizabeth Warren would not now be Assistant to the President for Consumer Financial Protection.
Otherwise? As far as policy is concerned, we would be smack on the mark that we are on now.
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