7/07/2012

Washington Can't Fix The Economy Unless It Gets Out Of The Way


I just caught a report by ABC's Good Morning America covering the dismal jobs report for June. It was another almost-softball report for Obama, with economics commentator Matthew Dowd stating the American people no longer trust politicians to fix the economy.

The truth, however, is more likely that it is the President they no longer trust.

Throughout our history it has been shown again and again that both Congress and the President have the power to damage the economy, but can usually do little to fix it by any other means than getting out of the way and letting the economy fix itself. Time and again it has been shown that by getting out of the way the economy rights itself, growth returns, and all is right with the world. Then someone in Congress or the President decide that things “aren't quite right” and they start tinkering with one tax, regulation, rule, incentives, subsidies, and law after another, each of them adding burdens that puts more pressure on the economy. In turn the economy slows, falls into recession, and then the Powers-That-Be wonder why this happened, not understanding that they are the ones causing the problems.

This recession, the longest in US history, was fostered by job-killing, finance-twisting, illogical regulations, laws, and “incentives” that short-circuited the usual feedback mechanisms and allowed economic bubbles to be created. Once those bubbles burst, the economy fell and fell fast.

The Powers-That-Be keep ignoring history, keep doing the same thing over and over again, and then wonder why their various 'fixes' for the economy didn't work this time.

It's called insanity.