from Scott Grannis at his blog, The California Beach Pundit, The $3 trillion cost of bad policies
The federal government borrowed $7.8 trillion over the course of the past seven years and handed most of the proceeds out in the form of various transfer payments (which now make up over 73% of federal spending). Our leaders in Washington did this in the belief that this would stimulate spending and that would convince businesses to create more jobs. The federal government restructured the entire healthcare industry in the belief that this would lower costs and give everyone healthcare insurance coverage. The federal government rewrote the rules for the entire financial industry, in the belief that a more-highly-regulated banking system and greater consumer protections would restore confidence and optimism. And to top it off, the federal government increased taxes on the rich, in the belief that this would benefit the middle class by more fairly distributing the fruits of progress.
But it didn’t work. Spending wasn’t stimulated; job growth didn’t surge; healthcare costs continued to rise, the vast majority of the uninsured are still uninsured, and millions have lost what coverage they used to have; banks are reluctant to lend and consumers are reluctant to borrow; consumer optimism remains weak; and the middle class has taken it on the chin.
If anything, the massive growth of government intervention in the economy since 2008 looks to be the Occam’s Razor explanation for what caused the weakest recovery in history.
If there is a reason for widespread discontent, it is our federal government and its overbearing and intrusive ways. Thanks to all the government “help” that has been heaped upon us in the past six years, we have the weakest recovery in history. And the bill for all this is a staggering $3 trillion per year and counting.