Obama Approach To Deficit Reduction Always Fails
Packages of spending cuts often lead to economic growth, whereas those including significant tax increases do not, which parts of Europe are learning the hard way today. Government spending is also one of the elements that proves less likely to create economic expansion.
Is Germany doing better than America? It's hard to argue with a 6.2% unemployment rate brought about through serious structural reform, including labor markets. Also, by reducing incentives to stay unemployed and reducing the size of, and compensation for, the government workforce, Germany seems to be faring far better than much of Europe--which responded to economic downturns with higher taxes.
America is headed for economic calamity if we don't embrace serious reform and start putting things right. With their respective core constituencies and politics, are Democrats or Republicans, if pressured by an empowered base, in a better position to deliver the long-term changes most on the right believe we need? It's not a trick question. Watch the short video to see for yourself and learn more.