“Governing” the Economy

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During the recent budget ceiling debate, the President invoked Ronald Reagan in a weak attempt to get the Republicans to agree on tax hikes …

It didn’t work…

But Mr. Obama is fond of channeling The Gipper now and again.

In his campaign, he noted—correctly--that Reagan was a “transformative” president.

And he was right.

But, to our great misfortune, Obama too, is a transformative president…

He’s transforming the world’s greatest economy into…Zimbabwe.

Why?

Well, one can only wonder about motives…

But how?

That’s easy…

Obama’s view of the government’s role in the economy is much different from Reagan’s--and that of most Americans.

In fact, their views on the role of government in America couldn’t be further apart.

Reagan often said that government needed to “get out of the way” of the American people.  Then, the economy would recover just fine…

And Obama’s view?

He told Iowans the other day that our economic malaise was due to some in Congress who wouldn’t get on board with the government’s plan to revive the economy…

The message was clear:  Government wasn’t in the way of economic recovery, but rather, that government was the way to economic recovery…

And therein lies all the difference between Reagan and Obama…

Between limited government and total government…

Between economic recovery and dynamism, and our descent into economic oblivion…

And between the founders of the country and the “lost-ers” of the country…

Regulation…or strangulation?

To put it bluntly, Obama is strangling the economy with regulation.

Not just over regulation—we can thank Bush 42 for that--but hyper-regulation.

The Administration insists that more regulation will help make the economy run better…

But the facts tell a different story.

In the past two years, federal involvement in the economy has risen to new levels…

And America’s economic health has dropped to new levels.

Rate of regulation rises

In the month of July this year alone, (yeah, last month) The Obama Administration put out 229 proposed rules, 379 final rules, and 10 “economically significant” rules, to a cost impact on businesses of over $9.5 billion!  That’s in one month, while the economy heads south…for perhaps a very long winter.

Under this Administration, it is estimated that federal regulations now cost $1.75 trillion per year.

That is twice the amount that individual income taxes brought in last year.

In the 2½ years since Obama took office, $38 billion in new regulatory costs have been inflicted upon the economy.

There is, in fact, no other such comparable time in US history.  And the pace of regulation is faster than ever seen before.

But the true costs of new regulations are even higher, since agencies fail to analyze costs, under estimate impacts, and fail to count costs of “non-major” rules.

How much are regulations weighing down the American economy?

Consider that the Federal Register of regulations is now over 49,000 pages.

Contrast this with Reagan…

By the 2 1/2 year mark in office, Reagan had cut the number of proposed rules in the Federal Register of regulations from 13,700 pages from the Carter administration, down to 9,400.

He had also cut $150 billion in costs to the economy.

It’s simple isn’t it?

49,000 pages of rules versus 9,400 pages...

Which Administration made Americans freer and more prosperous?

You either believe that a nation’s wealth and economic vitality is bestowed upon people by their government…

Or that it is the result of free people creating businesses and wealth by their own actions.

Reagan believed in the regenerative power and creativity of the American people…

It is apparent that Obama doesn’t believe that—or doesn’t want to.

It is also apparent that Obama is all about only thing: government power...

Obamacare stifles recovery

Obamacare is the perfect example of hyper-regulation stifling economic activity.

When Obamacare was passed in March of 2009, the following 60 days saw the recovery stall, and then reverse.  Unemployment went up and hasn’t really fallen since.

In fact, according to the Heritage Foundation, 33 % of business owners said the health care law was either their greatest or second-greatest obstacle to new hiring.

Federal Reserve officials report similar concerns…

Dennis Lockhart, President of the Federal Reserve Bank of Atlanta, said that the lack of clarity about the costs that Obamacare will impose is a major reason why business owners will not hire “a single additional worker until we know what health insurance costs are going to be.”

The truth?

No one knows how high the costs will be…We only know they will be higher.

And in a rare moment of clarity within the Obama Administration, they changed their own forecasts for any post-Obamacare economic recovery…

They expect 9.1% unemployment through 2011, and 8.2% in 2012.

But they’re wrong.

Unemployment will rise into the double digits in 2012 and beyond...

Why?

Because Obamacare makes hiring cost more.

Firms with less than 50 workers do not have to buy the costly government mandated health coverage.  Why hire when it can only cost you?

And those with over 50 workers will see their costs rise to buy the more costly government mandated health coverage…or face penalties.

This is why high unemployment rates will persist…

Unless Obamacare is repealed.

Obama can quote Reagan all he wants, but the Community Organizer just doesn’t have the right stuff, does he?

He doesn’t share Reagan’s view of the country…and is distant from the country’s own view of itself.

You may have gotten to the White House by talking a good game, Mr. President, but when it comes to growing the economy?

Well, Barry baby, you’re no Ronald Reagan.

And those are…The Gorrie Details.

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