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- #41
The government has created a Gordian Knot which is damaging the economy. History has shown again and again that raising taxes and increasing spending in a recession makes things worse.
Five Myths About the Great Depression - WSJ.com
Burt Folsom: Did FDR End the Depression? - WSJ.com
The real answer is to relieve the burden of government so that the private sector can create jobs. Even JFK recognized this. Instead, Obama has increased the size of government from the historical peacetime level of 20% of GDP to 25% (even without ObamaCare). After every other recession except for this one, small businesses created the majority of new jobs. With the government sucking all of the oxygen out of the credit markets to fuel Obama's increase in federal spending, small businesses are not hiring.
Without the Stimulus package, ObamaCare, the increase in the scope of government, the end of the bush tax cuts, the threat of a VAT, real job creation would have begun in earnest in the third quarter of last year. Obamanomics has stalled this recovery. They are now desperately manipulating the unemployment stats with bongus Census jobs - and walking back their claims that unemployment would peak at 8% if the Stimulus were passed.
Greece is the prequel - it would behoove you to study the effect of their policies and compare them to Obama's.
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Great post.
What is going on in Europe now - and the Soviet Union prior, is a perfect example of how Statism simply does NOT WORK over the long term.
November 2010 has become so critical to the future of this country...