By ALLAN H. MELTZER,The Wall Street Journal
The administration’s stimulus program has failed. Growth is slow and unemployment remains high. The president,his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for which they are responsible.
But they want new stimulus measures—which is convincing evidence that they too recognize that the earlier measures failed. And so the U.S. was odd-man out at the G-20 meeting over the weekend,continuing to call for more government spending in the face of European resistance.
The contrast with President Reagan’s antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months,the economy grew more than 9% and it continued to expand above trend rates.
Two overarching reasons explain the failure of Obamanomics. First,administration economists and their outside supporters neglected the longer-term costs and consequences of their actions. Second,the administration and Congress have through their deeds and words heightened uncertainty about the economic future. High uncertainty is the enemy of investment and growth.
Most of the earlier spending was a very short-term response to long-term problems. One piece financed temporary tax cuts. This was a mistake,and ignores the role of expectations in the economy. Economic theory predicts that temporary tax cuts have little effect on spending. Unless tax cuts are expected to last,consumers save the proceeds and pay down debt. Experience with past temporary tax reductions,as in the Carter and first Bush presidencies,confirms this outcome.
IMPEACH OBAMA in 2010,before there's nothing left of America!
http://www.impeachobamacampaign.com/
One cannot spend himself out of debt any more than he can drink himself sober.
When banks serve as the source of issue of currency,which they create out of nothing and loan it to government and collect usury for its use by it,they encourage defict spending as it will establish an inextinguishable public debt that will eventually allow them to acquire fee simple title to all of the debtor nation's resources. This country has been in private ownership since 1968. That is what communism is all about.
Every thing he has pushed down our throats has failed. The very worst president the US has ever had!!