The Republican Party needs more than rebranding: conservatism is the problem

Conservatism Is The Problem:

“Redistribution” is not a matter of first principles and anyone who tells you otherwise is mistaken. All fiscal policy is redistributive, in that it involves collecting taxes from someone and spending money on programs that benefit someone else. And the question of how progressive that redistribution ought to be depends on outside factors, such as the relative economic cost of various kinds of taxes and the level of pre-tax inequality.

Changes in economic conditions should change people’s preferences about the level of fiscal progressivity. For example, if returns to economic growth increasingly accrue to people at the top of the income distribution, we should become more favorable to progressive redistribution. If the economy becomes more fragile, with more risk of recessions that lead to years-long spells of high unemployment, that calls for a more robust and progressively-financed safety net. And if top income tax rates are well below the peak of the Laffer Curve, that creates more room for added progressivity.

As it happens, these are all conditions that have manifested over the last thirty years, and especially the last five — and they’re why I favor a more redistributive fiscal policy than I used to. Conservatives are wrong on this issue, and outside conditions have shifted over time in a way that has made them much more wrong than they used to be.

As Barro notes, the The Republican Party today is in a situation very similar to the British Labour Party back in the ’80s. Being too extreme made the socialists in the Labour Party ineffective both at winning elections and at enacting policies. If the GOP can become more moderate, it can again be an effective opposition party to the Democrats going forward.