Government-run economies disastrous (Thomen)
02/13/2015 Filed in: News Journal
I once suggested that perhaps, just perhaps, this last mid-term election demonstrated that the American public was recognizing that President Obama’s socialist agenda, enlarging the size and economic influence of the federal government, was not good for the country. Recently, the Wall Street Journal published a chart showing the rates of economic recovery for recent recessions. Every subsequent recession recovery was slower than the previous one.
As government has grown, so has the effort to influence government actions. The growth of “K Street” in Washington, which is home for the hordes of lobbyists, is testament to this phenomenon. Now, this does not prove cause and effect; however, it does suggest that government gaining control of more and more of our economy means that private businesses see more and more impediments to economic vigor and hence reduced recovery capabilities.
A look around the world confirms this observation. Government-run economies are notoriously famous as economic basket cases – [yielding] oppression and economic poverty for their citizens. Until Americans insist that the federal government reduce its expenditures, reducing the government footprint on economic activity, and get the US government debt under control, we cannot expect a robust economy and the reemergence of a healthy middle class.
James R. Thomen
Unfortunately, some in the business community have grown accustomed to government intervention and view it as a way to gain an advantage over competitors. Their tendency is to contribute money to both sides, expecting to have “a friend in court” no matter who wins. It’s a real puzzle how this pattern can be broken.