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Friday, June 8, 2012

Needed: Separation between Government and Economy

http://minnesota.publicradio.org/features/npr.php?id=154579423


Today, at one of his rare press conferences, the president said that the private economy is doing fine. A few hours later, when no one could believe that statement, he said, "it is absolutely clear that the economy is not doing fine." He went on to say, "That's the reason I had a press conference. That's why I spent yesterday, the day before yesterday, this past week, this past month and this past year talking about how we can make the economy stronger.
"There are too many people out of work, the housing market is still weak and too many homes underwater, and that's precisely why I asked Congress to start taking some steps that can make a difference," Obama said.
Unfortunately, his policies will not help the economy. Billions of federal tax payer dollars and printed money were spent on stimulus packages much of which went to states and local governments to pay government employees and hire more. Because this did not stimulate the economy, tax revenue did not go up enough for the states to continue to pay the new employees or many of the original ones. Therefore they had to lay some off. They could have limited layoffs by reducing salaries but they hardly ever do that.
The federal government's base line spending has increase by the amount of earlier spending but even that is not enough for the current administration. Government regulation inhibit business creation and growth by increasing costs.  Government spending strangles business even more by competing with private enterprise for recources.

Time for a change.

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