The bankruptcy of the Obama-Pelosi 'progressive'
agenda
By Peter Morici
Published January 30, 2013
No one can accuse the Democrats of being the
party of personal responsibility. Confronted with an economy that contracted in
the fourth quarter, Speaker Nancy Pelosi blamed Congressional Republicans for
obstructing the president’s agenda and creating uncertainty.
In the wake of the financial collapse, the
Democrats took full control of both the Congress and the Presidency in 2009 and
were presented with an historic opportunity to put their ideas into practice.
Unfortunately, the newly elected President Obama and Speaker Pelosi treated the
situation as a political opportunity to build a Democratic majority rather than
an obligation to fix what’s broken in the economy.
Shrewdly, President Obama cobbled together a
broader Democratic coalition by delivering to women free health care services,
to Hispanics amnesty for young adults, to younger folks overly generous student
loans, to teachers and civil servants subsidies to protect their jobs, to labor
unions a rebuke of Simpson-Bowles recommendation that the retirement age be
raised, and to his political friends generous subsidies for solar panels,
windmills and other whimsical projects. Meanwhile, he cut defense, raised taxes
on small businesses, and imposed unproductive regulations on manufacturing.
No surprise, the revolution of the takers has
instigated a strike among the makers. Rather than be slaves -- yoked under
burdensome taxes, regulations and endless hectoring from the Left -- small
banks aren’t lending but instead are looking to sell out to the Wall Street
barons who financed the President’s rise to power. Small businesses are not
expanding, and multinational corporations are taking factories and jobs to
China and other Asian venues where genuine enterprise and capitalism,
paradoxically, is supported.
Now, Mr. Obama’s tepid recovery is failing.
When the President campaigned in 2008, he
promised to address the huge trade deficits with China and oil, which together
sap demand and slow growth and jobs creation, and address skyrocketing health
care costs.
Early in his presidency, Mr. Obama blamed
China’s undervalued currency for slow U.S. growth and warned Chinese leaders if
they did not cooperate to redress the situation, he could act unilaterally.
Liberal economists like Paul Krugman, conservative economists like this author
and moderates like the Peterson Institute’s Fred Bergsten all recommended
viable courses of action.
Sadly, the President talks tough in front of
friendly audiences and to Republicans when he enjoys the high ground, but
brings his kneeling pad when negotiating with Chinese leaders. He has simply
done little to reverse the flow of money and jobs to the Middle Kingdom and
other venues in Asia.
In the wake of the Deepwater Horizon disaster,
the President punished the entire oil industry to gain political points and
appease environmentalists. So much for substantially reducing the oil deficit!
His most significant accomplishment -- ObamaCare
has turned into a massive subsidy for the health care industry and welfare
program for working class voters he hopes to secure for the next generation.
Health care costs 50 percent more than in Germany -- where outcomes are better
-- and health insurance premiums and co-pays borne by business and the middle
class keep rocketing.
Government spending is up over a trillion
dollars, the federal deficit is spinning out of control and the country faces a
credit downgrade by Moody’s. Former speaker Pelosi vilifies Republicans for not
embracing the President’s “balanced” approach, but he shows no interest in
cutting spending and only passion for raising taxes on success.
America hardly lacks the technology, capital and
enterprise necessary to succeed, but unfortunately, it is led by a man hell
bent on building a political majority, and with little interest in fixing
what’s broke in the economy.
Peter Morici is an economist and professor at
the Smith School of Business, University of Maryland, and widely published
columnist
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