Revised GDP Report Confirms Failure

During his first two years, with the support of commanding Democratic Party majorities in Congress, President Obama placed the biggest bet in US history on centralized government power.  The People lost.  We’re still losing.

The Commerce Department just published its final revision of the 4th quarter 2012 GDP growth rate.  From October through December the US economy grew at a rate of .4% – that’s 4 tenths of one percent.  The first chart compares the current post recession economy with the post recession economy of the 1980s.obama-vs-reagan-GDP-March13

Like President Obama, President Reagan inherited a deep recession when he took office in 1981.  But his strategy of expanding liberty by removing regulatory barriers and implementing across-the-board tax cuts to empower investors and entrepreneurs was a sparkling success.

Rather than repeat Reagan’s proven strategies President Obama went with the unproven Keynesian economic theory that a spike in government borrowing and spending could “stimulate” growth.  Instead of expanding liberty he expanded government.  His massive borrowing and spending, grants and loans to “green” energy schemes run by political cronies, ObamaCare, expanding federal regulations, and continuous threats of tax hikes on businesses and investors have yielded tragic results.

A major pillar of the progressive philosophy Obama represents is the belief that an interventionist government, advised by “experts” can achieve better economic results than we’ll experience if liberty and free enterprise are allowed to function, without supervision.  Obama thundered into office, vowing to use government power to “fundamentally transform” America.  He and his team of economic “experts” promised to “stimulate” the economy and bring forth prosperity for all.

Those experts now say their economic failure results not from too much government borrowing and spending but from too little!  The opinion columns regale us with pseud0-academic harangues that actually label Obama’s record shattering deficits “austerity” and insist that even more borrowing will fix what ails us. 

So is this a valid idea?  Were all the previous recoveries more prosperous because government borrowed more?  No. Obama’s spike in borrowing and spending is unprecedented.  Not since mobilization for World War II has government spending increased by so much in such a short time.

If your gut tells you we’ve already borrowed too much and gotten too little for it, history, as shown in the chart above agrees with you gut.  

No Comments

Comments are closed.