I think Rs know and understand that; it is the Ds that don't. The Ds think more government spending is the answer; I don't think any of them had Econ 101, or, if they did, it was taught by a liberal prof who believes in big government.
The reason Romney got 3 million fewer votes are two-fold: 1. Obama's lies about Romeny being responsible for some woman's cancer death, etc., and 2. Obama giving away the farm to buy votes.