In recent politics we’ve seen a lot of blunders, such as the Bush Administration’s decision to abandon Fiscal Conservatism and the Clinton health care “reform” juggernaut. We have not seen, however, a blunder so large as the Obama administration’s economic policy. The Obama administration’s economic policy is a true blunder. First, they are throwing money at the big banks and expecting them to act responsibly with it (what wishful thinking), and then they are banking on “recovery” for their future political success.
Whenever Obama sends one of his surrogates on a news show and they are asked about economic policy, they simply say that “recovery is coming and things will get better”. Well, I have some news for them. Taxing, spending, regulating, bailing-out and chumming it up with lobbyists, bankers and Congress won’t bring the “recovery” the Obama administration keeps promising. If they want recovery to come and for things to get better, they need to do two simple things; cut Federal government spending and cut taxes as well as eliminate some. Cutting Federal government spending will allow the Federal government to pay off its massive debt, which will curb inflation as well as increase the value of the dollar. Cutting taxes will encourage people to spend more money because they will have more money in their pockets to work with. However, eliminating capital gains taxes would also spur a shockwave of investing in the stock market—which will get capital flowing again. When capital flows—good economic times roll right along with it. Bill Clinton cut capital gains taxes in 1995 and that spurred a ton of investment in the stock market.
Most of all, we need common sense in government. With common sense and rational thinking come good policy. Right now, we have self-absorption as well as political back scratching going on right now, which so far has produced bad policy and has failed to spur this economy into real recovery.
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