Edward Lazear writes in the Wall Street Journal, Whose Fault is Todays Economy?,  6/13/12

Excerpt:

The logical conclusion is that what has happened since 2010 is a result of more recent policies, not ancient ones. In recent years, the strategy has been to emphasize short-run gimmicks and social goals rather than policies that could have produced economic growth and jobs. That strategy has been augmented by negative signals—such as blaming the rich and threatening new taxes and regulation—for investors and job creators.

Rather than stick with more of the same, we should adopt a different strategy from those that seem to be driving us back toward an ever-weakening economy. Policies should include moving to a tax structure that creates a positive climate for investment, an aggressive trade agenda to open our markets and those of other countries to more goods and services, a more cautious view of business-killing regulation, and attention to the rapidly growing debt.

The pitcher’s failure to throw strikes this late in the game is not a consequence of what happened during the first three innings. It is because he is throwing the wrong pitches.

HKO comment:

A pitcher’s poor performance cannot be blamed on the poor performance of previous innings.  A doctor’s poor performance can not be blamed on the illness the patient had when he came into his office.

Lazear points to the impact of current policies.  This administration is committed to a Keynesian ideology, and the delusion that somehow our economic cycles can be tamed if we focus on economic justice instead of economic growth.  In face of obvious failures it is defaulting to blame and excuses.

Instead of questioning his theories he doubts the reality.  Instead of adjusting his theories, he seeks to adjust our reality.  This requires immense use of government authority, in the form of regulation and onerous laws which are stifling economic growth.

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