The Worst Economic Recovery in History by Edward Lazear in the Wall Street Journal

Are there other factors that may have contributed to the slow recovery that we are experiencing? It would be difficult to argue that government polices over the past three years have enhanced confidence in the U.S. business environment. Threats of higher taxes, the constantly increasing regulatory burden, the failure to pursue an aggressive trade policy that will open markets to U.S. exports, and the enormous increase in government spending all are growth impediments. Policies have focused on short-run changes and gimmicks—recall cash for clunkers and first-time home buyer credits—rather than on creating conditions that are favorable to investment that raise productivity and wages.

There are some positive developments. The labor market is improving, albeit slowly. Profits remain high and the stock market has enjoyed some recent success. We can hope that these indicate better times and higher growth ahead. But unless we move to a set of economic policies that are aimed at growing the economy rather than at promoting social agendas, this may be the first “recovery” in history that fails to see us return to long-term average growth.

From Investor’s Business Daily ObamaCare Is Bending The Cost Curve Upward

At a Senate Appropriations Committee hearing less than a month ago, Sen. Ron Johnson, R-Wis., recalled that Obama had “said that by enacting this health care law, every family would save $2,500 per year,” then pointed out that “the Kaiser Family Foundation has already released a study saying that average costs of family health care plans are up $2,200.”

“We’re already different by $4,700,” Johnson said. “It’s going to be hard to get us down to $2,500 cost savings.”

There is much more ailing ObamaCare than its invasive individual mandate. It is a financial wreck that will require more tax dollars and private spending than any program in history. It has the potential to inflict severe long-term damage to the U.S. economy.

And for what? Increased health insurance coverage is not the same as better health, nor does wider coverage guarantee lower medical costs.

More government intervention, however, ensures higher costs and declining outcomes. Just ask the British, who are learning this the hard way.

print