From National Review Online
Secular Stagnation Is a Cover-Up
Failed Keynesian policies have blocked growth.
By Larry Kudlow & Stephen Moore
The blame falls on the White House and the Fed, and the discredited Keynesian model that government spending, debt, and cheap money are the way to restore growth. Ideas have consequences, and bad ideas have bad consequences. We’re still waiting for the government-spending multipliers and the Fed’s escape-velocity rebound to kick in.
Amazingly, the architects of this colossal policy failure are the same people who promised they would rebuild the U.S. economy “for the long term,” as Barack Obama put it in 2009. But they’re now blaming the stagnant economy on structural problems beyond their control. Oh, we get it. Consumers and businesses are wrong because they didn’t adhere to Keynesian economic models.
We have paid people not to work by raising eligibility and time limits for various benefit plans, substantially raised marginal tax penalties when people move from welfare to work, disincentivized employers from hiring more workers (Obamacare, minimum wage), raised taxes on investment, passed new regulations to strangle our energy industry, unionized even when workers don’t want it, continued corporate-welfare cronyism, and refused to fix a corporate tax system that sends jobs abroad. And then we wonder why the economy won’t shift into a higher gear.
And sadly enough, this is all happening when the potential for growth, productivity, and wealth are at an all-time high.
The arrogance of this administration is absolutely stunning. They passed endless destructive policies and take no responsibility for their outcome. The strength of this economy in the face of these destructive policies is amazing, but how long will it last?
At what point are excuses exhausted and accountability expected?