Posts Tagged ‘government’

Obama’s view of Free Market and Government

October 10th, 2012

OBAMA BELIEFS ABOUT THE FREE MARKET VS. GOVERNMENT

“We honor the strivers, the dreamers, the risk-takers, the entrepreneurs who have always been the driving force behind our free enterprise system.” (Convention speech)

“From our first days as a nation, we have put our faith in free markets and free enterprise as the engine of America’s wealth and prosperity. More than citizens of any other country, we are rugged individualists, a self-reliant people with a healthy skepticism of too much government.”

 

But he continues:

“But there has always been another thread running throughout our history – a belief that we are all connected; and that there are some things we can only do together, as a nation. We believe, in the words of our first Republican president, Abraham Lincoln, that through government, we should do together what we cannot do as well for ourselves. And so we’ve built a strong military to keep us secure, and public schools and universities to educate our citizens. We’ve laid down railroads and highways to facilitate travel and commerce. We’ve supported the work of scientists and researchers whose discoveries have saved lives, unleashed repeated technological revolutions, and led to countless new jobs and entire industries. Each of us has benefitted from these investments, and we are a more prosperous country as a result.”

 

“For much of the last century, our nation found a way to afford these investments and priorities with the taxes paid by its citizens. As a country that values fairness, wealthier individuals have traditionally born a greater share of this burden than the middle class or those less fortunate. This is not because we begrudge those who’ve done well – we rightly celebrate their success. Rather, it is a basic reflection of our belief that those who have benefitted most from our way of life can afford to give a bit more back. Moreover, this belief has not hindered the success of those at the top of the income scale, who continue to do better and better with each passing year.”

 

“But that starts by being honest about what’s causing our deficit. You see, most Americans tend to dislike government spending in the abstract, but they like the stuff it buys. Most of us, regardless of party affiliation, believe that we should have a strong military and a strong defense. Most Americans believe we should invest in education and medical research. Most Americans think we should protect commitments like Social Security and Medicare. And without even looking at a poll, my finely honed political skills tell me that almost no one believes they should be paying higher taxes.”

(Source)

A Case Study in Economic Policy

June 14th, 2010

What economic policies lead to greater economic health? And what political policies will lead to better economic outcomes? These are complex questions, and can be difficult to test scientifically. However, it is useful to look at case studies in an effort to understand what policies work and what policies lead to disaster. Let’s take a look at the Golden State.

California has a $24 billion budget deficit. Unlike other states, California’s constitution requires a two-thirds majority legislative vote. This means the that minority Republicans—making up almost 40% of the state congress—have significant power to block legislation and budget plans that could avert further financial disaster. Because Republicans are against tax increases, the state is struggling to fix their current budgetary woes brought on by the global economic situation. When liberal social policy meets a policy of anti-taxation—and this combination is personified by Governor Schwarzenegger—we end up with exactly what California is facing today: A large budget shortfall, high unemployment, large numbers of foreclosures, and general economic sluggishness. Modest increases in tax revenues, effective utilization of federal stimulus dollars, and cutting costs are the obvious short-term solutions. But California’s budget crisis had been unstable from well before the global recession had an impact. » Read more: A Case Study in Economic Policy