If Obama Could Replicate Reagan Recovery, Economy Would Be About $17,000 Bigger Per Family
3rd May 2014
As if.
What happens to an economy when you do just about everything wrong? Say you spend $830 billion on a stimulus stuffed with make-work government-jobs programs and programs to pay people to buy new cars, you borrow $6 trillion, you launch a government-run health-care system that incentivizes businesses not to hire more workers, you raise tax rates on the businesses that hire workers and on the investors that invest in the businesses that hire workers, you print $3 trillion of paper money, you shut down an entire industry (coal), and try to regulate and restrain the one industry that actually is booming (oil and gas).
We made all of these imbecilic moves, and the wonder of it all is that the U.S. economy is growing at all. It’s a tribute to the indestructible Energizer Bunny that is the entrepreneurial U.S. economy that it keeps going and going even with all the obstacles. The problem is it isn’t going very fast. That’s what the Bureau of Economic Analysis told us this week when it reported that the GDP for the first quarter of the year grew an anemic 0.1 percent on an annual basis from January to March. The more meaningful measure of growth, private-sector GDP, rose by a still-meager 0.2 percent.
‘Put not your faith in princes, nor the sons of men, in whom there is no salvation.’ — Psalm 146.