ObamaNomics Year Seven: Economy Sputters to a Standstill

We’re in the seventh year of the most audacious and reckless experiment with progressive economic theories in our nation’s history.

In the first quarter of 2015 the US economy grew 0.2%.

As the chart shows the American people continue to endure the worst post-recession economy or “recovery” since the Commerce Department began issuing quarterly economic reports in 1947.

GDP-2009-2015-Q1When asked about the dismal economy the President’s supporters offer the excuse that he “inherited the worst recession since the great depression,” and that his record shattering spending and aggressive new regulations “lifted us out of recession.”  Apparently they want us to believe that without government intervention the recession would not have ended. But this argument contradicts history:

  • Every recession ends, with or without government intervention.  Historians have identified 33 recessions from 1854, through 2007They all ended, most without any government intervention at all.  Yet Obama’s supporters hope we’ll believe the recession of 2008-09 would be the first to go on forever, without end, unless politicians intervened with a tsunami of new spending and regulation.
  • There is no historical data to validate the theory that a spike in government spending during the first two years of a recession will bring on a stronger post-recession recovery.

When allowed to operate without excessive government interference the American economy has been a spectacular prosperity machine, unequaled in all of human history.  But under President Obama and the so-called “progressives” he leads, government has finally grown powerful enough to throw sand in the private sector gears.

It doesn’t have to be this way.  Based on the lessons of history we know what government can do to help stimulates economic growth.

Like President Obama, President Reagan inherited a severe recession. The 1981-82 recession was caused by a series of financial and monetary crises and was in some ways worse than the 2008-09 recession.  Unemployment spiked higher, interest rates soared into double digits and home and stock prices crashed.  Yet as the chart shows the economy grew more than twice as rapidly as our current “recovery.”

Reagan’s economic program, based on his commitment to liberty, was the opposite of Obama’s:

  • Sweeping tax cuts that left wealth in the hands of those who had created it and were best equipped to reinvest in the American economy;
  • Release the creative and productive energies of The People by eliminating the restraints of excessive government regulation.

Unfortunately, President Obama and the Democrats simply ignore history, adhering to the seductive, “progressive” promise of prosperity through expanded central government power over, and intervention in the economy.  Obama’s program includes:

  • Record high deficits;
  • A government take-over of health insurance;
  • tax increases, especially on small businesses the primary job creators;
  • An aggressive regulatory agenda.

The good news is that though it’s economic record is far from perfect the Republican Party does seem to be grooming an emerging generation of realists who are not seduced by progressive promises of miracles delivered by a more activist and powerful federal government putting limits on the private economy.  The Post-Obama era may well become known for a restoration of liberty and economic opportunity.

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