Friends and clients have asked questions about the Republican National Committee (RNC)  2024 Platform. For context, I attach the entire RNC platform. Excerpts from the RNC platform are in quotation marks. My comments are in green italics.

“President Trump’s economic policy to end Inflation”

The primary cause of inflation is large annual budget deficits ($1.7 Trillion likely this year) and the cumulative $38 Trillion national debt.

“11.      REBUILD OUR CITIES, INCLUDING WASHINGTON DC”

Is this intended as a new federal responsibility? Add a hundred billion dollars to the debt.

“14.      FIGHT FOR AND PROTECT SOCIAL SECURITY AND MEDICARE WITH NO CUTS, INCLUDING NO CHANGES TO THE RETIREMENT AGE”

Responsible leaders know that the retirement age must be raised. We live longer. Decades ago, 16 workers supported one retiree. Now the ratio is less than 3:1 and headed to 2:1

Interest payments on the national debt already exceed the cost of Medicare and exceed the cost of national defense. If we wait another four years to fix this, we will have to take drastic action when we raise the retirement age.

“1. DEFEAT INFLATION, AND QUICKLY BRING DOWN ALL PRICES.”

Defeating continued inflation does not bring down all prices quickly. That is “deflation” and only happens in a deep recession or depression. Why would you buy nonperishable and non-urgent goods and services if you expect the price to go down next month?

“2. REIN IN WASTEFUL FEDERAL SPENDING”

“Republicans will immediately stabilize the Economy by slashing wasteful Government spending and promoting Economic Growth.”

The only wasteful spending itemized in the platform is luxury housing for illegal alien. This is an expense borne by foolish local governments, not by the federal government.

“War breeds Inflation while geopolitical stability brings price stability”

Whether war breeds inflation depends on how it is financed and what the alternatives are.

“and lowering commodity prices”

Is this a proposal for federal price controls on commodities? Price controls are a disaster.

“CHAPTER FOUR: BRING BACK THE AMERICAN DREAM AND MAKE IT AFFORDABLE AGAIN FOR FAMILIES, YOUNG PEOPLE, AND EVERYONE”

“To help new home buyers, Republicans will reduce mortgage rates by slashing inflation”

Does the rest of the program slash inflation or fuel it? It will not reduce mortgage rates if the rest of the program fuels inflation.

“promote homeownership through Tax Incentives and support for first-time buyers”

Whether by a tax credit or by direct grant, this will drive up the deficit and the debt, fueling inflation. This was part of the recipe that gave us the Great Recession of 2008-2010.

“CHAPTER FIVE: PROTECT AMERICAN WORKERS AND FARMERS FROM UNFAIR TRADE”

“Republicans will support baseline Tariffs on Foreign-made goods”

A tariff is a tax on imports. The burden is mostly paid by consumers.

“As Tariffs on Foreign Producers go up, Taxes on American Workers, Families, and Businesses can come down.”

Tariffs drive up the cost of living so consumers don’t see the embedded tax they actually pay.

“Buy American and Hire American Policies, banning companies that outsource jobs from doing business with the Federal Government.”

There are some national security goods and services that must not be outsourced. This provision would drive up the cost of most of what the government buys, increasing the deficit and debt, fueling inflation. The economic law of “comparative advantage” can be broken by policy makers, They cannot avoid the expensive consequences.

“he [Trump] will not cut one penny from Medicare or Social Security”

Not raising the retirement age ensures huge cuts in future benefits or huge increases in payroll taxes.  

“support hardening schools to help keep violence away from our places of learning”

This requires the Federal Government to expand its budget for education by tens of billions of dollars to send to schools. This should be a state and local responsibility

“replenishing Police Departments”

There is already federal funding for police departments through grants. If this platform proposes significant “replenishing,” this raises the deficit and the debt, fueling inflation.

Paul Stam served 16 years in the N.C. House of Representatives, The last  10 of which as Republican Leader and Speaker Pro Tempore. For comments, email paulstam@stamlawfirm.com.

Documents: RNC on Inflation, the Cost of Living