Tuesday, July 26, 2011

Twin Forces Paralyze Washington - WSJ.com

Twin Forces Paralyze Washington - WSJ.com

There is also the issue of whether the Democratic model can co-exist with a vibrant, growing economy that provides jobs.

Clearly, the Democrats don't believe their high tax, heavily regulated, pro-union economic model is an inhibitor to job creation. Any look around in the US or globally would argue strongly against such an assumption - but, then again, those with rose colored glasses or, as Mark Twain said, "It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so," aren't inclined to do much looking around.

Thus, the Republicans strongly (and rightly) believe that the economy and degree of government involvement (in the broadest sense of fiscal policy and size) needs to diminish if we are going to keep the economy going and let it start to grow.

Bush with his anti-immigration policy wasn't perfect but the economy needs to have some pro-business policies.

The Democratic policies are take a dollar and give back 20 cents policies and the results are obvious - stagnation and high (and likely growing again) joblessness.

Under such conditions and scenario was Boehner right in describing Obama as wanting only more government and more taxes? All the evidence points to the fact that the problem is Obama and his policies - if we want to add jobs and growth to the economy. If not, that was the hue and cry under Jimmy Carter - and, we can recall the stagflation of the Carter era with almost 20% interest rates and no growth.

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