If the last four years were not convincing enough, President Obama proved during Tuesday night’s debate that he has no clue how the economy works. His stated economic proposals are nothing but reheated talking points from 2008, and they are as unrealistic now as they were then.
Despite his falsely professed faith in markets, the President shows by his actions and policy proposals that he really believes the only way economies thrive is when they are directed by government policy-makers and bureaucrats who are empowered to choose the “correct” economic outcomes.
For example, the first questioner Tuesday night asked how the candidates would assure that he has a job after he graduates college in 2014. Obama’s telling answer was that he would punish companies that offshore, further subsidize college loans, invest “in solar and wind and biofuels, energy efficient cars,” raise taxes on the rich, and increase spending on roads, bridges and schools.
He has actually accomplished all of those things except raising taxes on the rich. What are the results? The slowest economic recovery in U.S. history.
When Mitt Romney explained how bankruptcy works, Obama demonstrated his stunning ignorance by saying Romney wanted GM to go bankrupt “without providing them any way to stay open.” Actually, allowing companies to stay open is what Chapter 11 bankruptcy (which both GM and Chrysler filed, and which Romney advocated) does. A President who thinks that only government subsidies can keep struggling companies open is a President who will squander taxpayer money on needless corporate bailouts, as Obama has.
On taxes, Obama demonstrated total ignorance of the historical fact that lowering rates across the board can stimulate economic growth. He asserted that by keeping capital gains and other rates low, “we’re not going to get money that way.” In fact, it would mean more government revenue.
A President so completely ignorant about basic economics produces what we have seen during Obama’s tenure: an economy prevented by government policy from realizing its full potential. Romney’s smarter policies would unleash the economic potential that has been suppressed by Obama’s suffocating practices.
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The Manchester Union-Leader (New Hampshire) wrote and published this editorial.