Sunday, July 28, 2013

Incompetent, Clueless - Is Despair Next?

Summary - many pretty words were spoken about the scope and impact of government efforts to rebuild the America of the 1950s - seemingly the goal of the progressives - but after five years, the results are next to nothing. Nada, zip, zilch. Sure must be frustrating to see those progressive dreams fizzle.

Why that was inevitable is easy to understand - if you make it more difficult for people to freely interact, they interact less. In an economy, voluntary interaction, with each party working to their won benefit, is the primary engine of growth. Everything this administration has done dampens voluntary interaction. No amount of "enlightened" coercion will produce growth.

In October 2010, just before Republicans won 63 House seats to reclaim the majority, 44 percent of Americans approved of Obama's approach to the economy in Post-ABC polling. Go back a year before that - December 2009 - and Obama's economic approval is 46 percent.
It won't change minds because we've been doing the same thing for more than four years on economic policy. Obamanomics is nothing but short-term attempts to inject stimulus while ignoring the fundamentals of economic growth - lowering hiring costs, reducing regulation, encouraging capital investments by increasing potential rewards and minimizing risks. We're doing the opposite across the board, in large part due to ObamaCare, Dodd-Frank, and higher tax bites on capital gains. Short-term stimulus didn't work with Cash for Clunkers, it didn't work in Detroit, and it's not working anywhere else except in Washington DC.

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