Archive for category Economy and Spending

Debt

John Hayward at Human Events has an analysis on the current debate over the federal debt and the debt limit. Put simply, Hayward believes that the huge debt burden carried by our bloated government is an intentional and vital element of maintaining that bloated mass:

High corporate and individual tax rates lead to high unemployment rates.  If you suggest reducing those tax rates to spur private-sector growth and lower unemployment, you will be accused of making the debt situation worse.  That wouldn’t be very intimidating if the national debt was low.  Why not lower those taxes and see if the resulting growth generated more net revenue at the lower rates? Read the rest of this entry »

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Spending Cuts

Now that the GOP has some significant influence in Congress, suggestions are coming out as to what spending cuts can be made. Chris Edwards at the Cato Institute, for one, has a list of budget proposals that involve significant spending reductions: Read the rest of this entry »

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Democrats’ Economic Record

Common Cents has this gem, which illustrates the effect that a Democrat majority in Congress has had on unemployment numbers. But remember: it’s all Bush’s fault!

2000

4.0 4.1 4.0 3.8 4.0 4.0 4.0 4.1 3.9 3.9 3.9 3.9
2001 4.2 4.2 4.3 4.4 4.3 4.5 4.6 4.9 5.0 5.3 5.5 5.7
2002 5.7 5.7 5.7 5.9 5.8 5.8 5.8 5.7 5.7 5.7 5.9 6.0
2003 5.8 5.9 5.9 6.0 6.1 6.3 6.2 6.1 6.1 6.0 5.8 5.7
2004 5.7 5.6 5.8 5.6 5.6 5.6 5.5 5.4 5.4 5.5 5.4 5.4
2005 5.3 5.4 5.2 5.2 5.1 5.0 5.0 4.9 5.0 5.0 5.0 4.9
2006 4.7 4.8 4.7 4.7 4.6 4.6 4.7 4.7 4.5 4.4 4.5 4.4
2007 4.6 4.5 4.4 4.5 4.4 4.6 4.6 4.6 4.7 4.7 4.7 5.0
2008 5.0 4.8 5.1 5.0 5.4 5.5 5.8 6.1 6.2 6.6 6.9 7.4
2009 7.7 8.2 8.6 8.9 9.4 9.5 9.4 9.7 9.8 10.1 10.0 10.0
2010 9.7 9.7 9.7 9.9 9.7 9.5 9.5 9.6 9.6  

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The New Deal Myth

Jay Wiley at American Thinker takes a look at the myth that Democrats still push that the New Deal somehow saved us from the Great Depression:

The New Deal was a menagerie of federal programs and bureaucracies based on the Keynesian economic theory that increased government spending would stimulate the economy. This theory necessitated more government intervention in and control over the American economy. This dovetailed nicely with the Left’s political agenda.

The prevailing historical narrative of the New Deal casts FDR as champion of economic justice through “bold” and “dynamic” government regulation of the economy. Of course, every good story needs a villain, and critics of the Keynesian approach were cast as greedy, self-interested capitalist thugs. FDR’s cosmopolitan, forward-looking approach was meant to draw a sharp contrast to the outdated and unjust laissez-faire economic model. This was progress.

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The truth is that the experimentalism of the New Deal was an ineffective mess that further tangled the knot of the Great Depression.

After years of unprecedented economic intervention by Roosevelt, competition was stifled, investment plummeted, restrictive cartelization abounded, industrial production stagnated, and budget deficits skyrocketed. Wage controls and new union contracts limited the number of new workers private-sector employers could hire, leaving unemployment to hover around 20%.

Government being government, the New Deal was plagued by staggering inefficiency and red tape. Many New Deal programs were to be administered by local officials with agendas, constituencies, relationships, and governing philosophies of their own.

Roosevelt’s lack of imagination was also startling. He governed as though a new agency or bureaucracy were tantamount to a new solution. The federal government took on a new role in the 1930s as insurer against poverty, recession, and even human want itself — a sharp deviation from Jeffersonian principles of freedom from government. The result was an exponential growth of government, a restriction of economic freedom, and an economic downturn lasting far longer than usual.

And despite the fact that such a massive imposition of the government on the economy was such an abject an abysmal failure, the Democrats are hoping that if they try it again, it will work splendidly!

Read the whole thing.

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How Government Kills Small Business

A fun little video, complements of IUSB Vision, that illustrates why government regulation harms small businesses:

 

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Where Are the Jobs?

Reason TV Presents this brief video that asks a simple question: If Obama’s economic policies are so great, and he’s fixed the recession, then where are all the jobs at? An interesting comparison between the policies of today and those that ended prolonged the Great Depression.

Today many Americans credit FDR with rescuing our nation from the Great Depression, but there’s plenty wrong with that view, says Lee Ohanian, a UCLA economics professor who specializes in economic crisis. “What’s wrong with that view is that private-sector job growth did not come back under Roosevelt,” says Ohanian, who notes that Americans often forget how long the Great Depression lasted. Unemployment stood at 17 percent in 1939, a decade after the infamous stock market crash, and, although times were much worse back then, Ohanian sees troubling parallels between the Great Depression and the Great Recession. In both instances our nation emerged from a severe downturn with strong productivity growth and the banking system largely restored. We were poised for a recovery, but didn’t get one. “So the key puzzle for both today and the 1930s is why aren’t private-sector jobs being created at a much more rapid rate?” Read the rest of this entry »

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Failed Policies of the Past

Peter Ferrara at the American Spectator presents this excellent analysis of President Obama’s economic policies, and his eagerness to dismiss successful economic policies, such as tax cuts and reduced government regulation, as “failed policies of the past,” whiel embracing Keynesian economic policies that have been shown to fail time and time again.

This pitiful economic performance is the plainly foreseeable result of an economic program based on the fundamental misconception that economic growth results from more government spending, surging welfare, and record shattering deficits and national debt, which are the foundational principles of the long discredited Keynesianism at the core of Obamanomics. What President Obama is treating us to is effectively a historical reenactment of the 1970s, if not the 1930s, so we can all see first hand how those economic tragedies happened. All the more so now that Bernanke has embraced the monetary policy fallacies of the 1970s in trying to use inflation to stimulate economic recovery. The resulting declining dollar means we are all getting poorer, as everything we buy from overseas will be more expensive as a result, meaning a declining standard of living for America.

Read the whole thing.

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