By Tom Quiner
How do we turn our economy around?
How do we start creating jobs again?
That’s the first pillar of Obamanomics.
But we tried it. It has failed so miserably that the results are laughable, if the damage to working class America wasn’t so harsh.
Economist Arthur Laffer detailed the abject failure of Obamanomics in this morning’s Wall Street Journal. He tracked countries around the world that tried to “stimulate” their economy with lavish government spending. Here are the results:
“Of the 34 Organization for Economic Cooperation and Development nations, those with the largest spending spurts from 2007 to 2009 saw the least growth in GDP rates before and after the stimulus.”
Here in America under the Obama/Pelosi/Reid economic model, government spending exploded. As a percentage of GDP, they ratcheted up government spending by 7.3% from 2007 to 2009.
Did it work? Did the economy explode like it did under Reagan’s tax cuts back in the early 80s?
Real GDP growth declined by 8.4% in the same time frame.
That’s the second pillar. Team Obama says the “rich” aren’t taxed enough. And yet the top 25% of earners pay 87% of the nation’s income tax. The bottom half pay less than 3 percent. So Obama is just playing politics when he says this kind of stuff. Now think about this: who knows how to spend their money better, you or the government?
The answer is Warren Buffett, super investor.
The answer is Steve Wynn, Las Vegas casino entrepreneur.
The answer is Mark Zuckerberg, Facebook founder.
The answer is you.
In other words, government takes your money and pours it down too many rat holes, like Solyndra. Of course, there are good government programs. But there is just too much waste. And all those government programs breed dependence on government. That may be good for the Democratic Party, but it’s bad the average citizen.
You know how to spend your money better than Obama does.
Last year alone, the Obama administration implemented 760 new regulations.
They take up 75,000 pages of of paper just to explain.
They cost the economy $230 billion to comply, and create 120 million additional hours of annual paperwork requirements.
Let me recap the Obama economic model:
1. Increase taxes.
2. Increase government spending.
3. Increase government regulations.
How is it working? The unemployment rate is beginning to rise again and is up to 8.3%. It averaged 5.3% under his predecessor. Economic growth is stagnate. Job creation is tepid.
If your hot button issue is the economy, expect more of the same if Barack Obama is re-elected.
It would be irrational to think otherwise.