As we see in New Jersey, Ohio, Texas, and Wisconsin, the cure for the present economic malaise is not rocket science — a curbing of the size of government, a revision of the tax code, a modest roll back in regulation, reform of public employment, and holding the line on new taxes. Do that and public confidence returns, businesses start hiring, and finances settle down. Do the opposite as we see in Mediterranean Europe, California, or Illinois over the last decade and chaos ensues.
Obama took a budding recovery in June 2009 and through massive borrowing, the federal takeover of health care, new expansions of food stamps and unemployment insurance, the curtailing of oil and gas leasing on public lands, new regulations, and non-stop demagoguery of the private sector slowed the economy to a crawl. His goal seems not to restore economic growth per se, but to seek an equality of result even if that means higher unemployment, and less net wealth for the poor and middle classes. Obama hinted at that in 2008 when he said he would raise capital gains taxes even if it meant less revenue, given the need for ‘fairness.’ Indeed, equality is best achieved by bringing the top down rather than the bottom up. Nowhere is the Obama model of massive borrowing, vast increases in the size of the state, more regulations, and class warfare successful — not in California or Illinois, not in Greece, Spain, or Italy, not anywhere.
Monday, June 25, 2012
The Great VDH
Victor Davis Hanson has what amounts to a summary of the debacle that is the Obama Administration. Read the whole thing, here is a key passage on the economy: