It must be something in the water. The ruling Democrats know their tax-hiking, re-regulating, and big-spending policies have failed to rejuvenate job-creation or reduce the unemployment rate. And yet they persist in trying more of the same.
A recent New York Times editorial acknowledges that the economy is weak, but it pleads for yet another federal stimulus package. The Times editors want another round of unemployment benefits (this would be the third) to subsidize non-work welfarism. They also want more federal spending on state Medicaid -- an area that already has been showered with federal taxpayer money to no economic avail since it has nothing to do with economic growth.
Can’t we do better?
Or let’s take the case of Rep. Barney Frank, a smart guy. He told MSNBC that "The right wing took control of government and ruined it. They gave it a bad reputation. Now we are trying on every front to increase the role of government in the regulatory area."
Ah! Re-regulation. What a great idea. As I recall, the Soviet Union and old Eastern Bloc tried heavy government control and regulation, and it didn’t work. The people rebelled. They wanted economic freedom; the right to keep their own money; the right to start their own businesses; and the right to climb the ladder of success in a free economy.
Now here’s a counter-thought. The Reagan free-market revolution, which included regulation lite, a sound dollar, and low tax rates, launched a three-decade-long boom. And yes, the Gipper’s policies were copied around the world. (What does Barney Frank know that the rest of the world doesn’t?) Even the communists in China have adopted deregulated free-market capitalism.
The battle between democratic entrepreneurial capitalism and heavy-handed statism has already been won by the economic freedom fighters around the globe. That’s one reason why the capitalist emerging economies in Asia, Eastern Europe, and many parts of Latin America (think Brazil) are challenging U.S. economic supremacy and the American dollar.
Prodded by the New York Times and other media organs, the Democrats in Congress are going in the wrong direction. They don’t seem to realize that growth and wealth come from individuals and human action, not the heavy footprint of the state.