Thursday, December 27, 2012

Don't Blame the Economy on the Cliff

The economy is weak because of government policy -- not the ongoing fiscal cliff stalemate.  The Obama Administration has waged war against the private sector free market from the day it took office.  That war has borne fruit.  This is the slowest economic recovery since the 1930s.

The slow pace of economic growth has nothing to do with the cliff.  It has been going on since late 2009.  There is not going to be any serious economic growth in the US given the regulatory and legal environment that has been imposed upon the US economy since Obama took office.  The financial sector has been crushed, bank lending has been discouraged by the regulators, the energy sector has just barely survived the Obama onslaught, and employees are an endangered species.

Obamacare pretty much says it all.  Another costly mandate on companies and ultimately on individuals was the final kicker.  Along the way the elimination of the Keystone pipeline project was emblematic of the Obama strategy.  Push government spending and expansion and crush the private sector.

Well, guess what.  They have succeeded.

So, forget the cliff.  The cliff, whether we go over it or not, won't matter.  This is not an economy going anywhere.  The only significance of the cliff is that if a deal is reached, US bankruptcy will be sooner not later.  At 20 trillion in debt and an economy in the ditch, it is unlikely that bankruptcy can be avoided and we should reach that level in Obama's seventh year in office.

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