How To Liberate America From The Poverty Trap That Is Enslaving Us
By Peter Ferrara
In the latest Bureau of Labor Statistics jobs report, for March, the Obama economy finally reached a long overdue milestone. More than six years after the latest recession began, in December, 2007, the economy has finally at long last recovered all of the jobs lost during the recession.
The gross failure is that in the 11 previous recessions since the Great Depression, the economy recovered all jobs lost during the recession after an average of 25 months after the prior jobs peak (when the recession began). So the job effects of prior post Depression recessions have lasted an average of about 2 years. But President Obama’s supposed recovery has taken three times longer than prior post-Depression recoveries on average to achieve that same result.
That is just further confirmation that President Obama has misled America into the worst recovery from a recession since the Great Depression. And, no, Obamabots cannot say the recovery was so bad because the recession was so bad. America’s historical record is the worse the recession, the stronger the recovery, as the economy races ahead during the recovery faster than normal, to catch up to America’s world leading, long term, economic growth trendline.
These extremely poor results are the direct consequence of Obama’s meticulously anti-growth economic policies. Instead of cutting tax rates, as both Kennedy and Reagan did to such astounding, historic success, Obama has raised the rates of every major federal tax, except for corporate income taxes, where the top marginal tax rate is now the highest in the world for any significant economy. Obama only postures as favoring corporate tax reform to lower those rates, which would be enacted with broad, bipartisan support in his absence.
Instead of deregulation to reduce unnecessary, stifling regulatory burdens and barriers, as both Carter and Reagan did to such fully documented success, Obama regulates mercilessly as if regulation is cost free to the economy, as the most interventionist President in American history.
Most destructively, Obama has stifled the still world leading American energy boom, still straining to completely break out, by shutting down exploration and development of oil and gas on federally controlled lands and seas, and constantly threatening the regulatory shutdown of exploding private energy development. Implementation of that has already begun in regard the coal industry, all of which evidences a President who seems to be at war with his own economy.
This punitive energy overregulation only barely beats out the massively destructive overregulation of Obamacare, which has long been causing havoc and chaos in America’s labor markets, and only threatens to get far worse, as Obama implicitly recognizes with his illegal delays in key components of his own legacy legislation. Exactly contrary to the dense fog of fascist style propaganda of the current times, unprecedented in American history, Obamacare health care overregulation has only sharply increased rather than reduced health costs, further stifling the economy.
The Fed’s wild-eyed monetary policies, which Obama has enthusiastically supported like a football coach orchestrates his team’s offensive and defensive game plans, only further discourage the capital investment that is the lifeblood of capitalism by destabilizing the currency, and planting the seeds for the return of double digit inflation. In a later column, I will explain why the Fed cannot engineer a soft landing from the years long flight of monetary policy fantasy with virtually zero interest rates and money printing to cover the Obama/Democrat record shattering deficits that exploded from the Democrat takeover of Congress in 2007.
Moreover, the revival of runaway federal spending, deficits and debt that exploded with the new Democrat Congress in 2007, further accelerated by Obama’s $1 trillion, so-called stimulus spending bill in 2009, is not pro-growth, as Keynesian witch doctors tell us, but anti-growth, as the real world record, and fundamental logic, tell us. Explaining the double counting illogic of Keynesian policies would just be excessively repetitive of prior columns. The only real question is whether there will be any accountability, and consequences, for blind advocates of these costly, fallacious policies, which have failed regularly for going on nearly 100 years now.
Read more: Forbes.com
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