Tuesday, April 17, 2012

Obama's policies are the real unfairness

The Democrats are quite willing to admit that the aim of the Buffett Rule "is not to lower the unemployment rate or the price of gas."

Well, that's certainly true. It's all about supposed "fairness" and "equality." But what's so fair about Obamanomics? Actually, the policies of the Democrats are what is blocking economic growth. And low growth, as Abe Greenwald argues, is what hurts everyone.
If government intervention corrects unfairness, as liberals insist, why when placed side-by-side, do the two look as cozy as temperature and CO2 in an Al Gore propaganda blockbuster?

Conservatives are failing entirely to take this debate where it needs to go. Over-regulation isn’t just unfair in the “it’s not right to tax my billions because I’ve earned them” sense. Overregulation is unfair for everyone. An over-regulated American housing market saw lenders forced into giving loans to buyers without sufficient credit. When it came time to pay up, the whole scheme went under in a flash, nearly taking financial markets down, and causing the job-killing recession from which we continue to suffer. If the 2008 collapse put you out of work blame a disastrous piece of liberal legislation known as the 1977 Community Reinvestment Act—not millionaires.

Federally instituted “fairness” furnishes undeserved opportunities for house-of-cards companies like Solyndra to edge out less fashionably green, but more worthwhile, competitors. Financial regulation aimed at curbing Wall Street greed only serves to discourage smaller start-up capitalists without the money to troubleshoot the regulation maze as ably as giant corporations.

Obama isn’t offering fairness at all. He’s pitching therapeutic divisiveness: “see how many millionaires pay a lower effective tax rate than you,” get mad, make them pay. In 2008, the guns-and-Bible part of Obama’s “bitter clinger” comment made headlines, but there was more to what he said. He also scolded Americans who “cling to antipathy to people who aren’t like them … to explain their frustrations.” That antipathy is the Obama 2012 campaign message. Just let him pick the targets.
As Conn Carroll explains, it is not economic inequality that threatens growth, but political inequality.
The real danger to our economy is not income inequality, per se. The real danger to our economy comes from wealthy special interests who use government power to squelch competition and enrich themselves.

Speaking of wealthy political donors using government power to squelch competition and enrich themselves, let us peruse Obama's signature economic policies.

Obamacare: The drug industry spent millions of dollars promoting Obamacare in exchange for keeping foreign drugs out of the U.S. market, and billions in subsidies for Americans to buy their products.

Energy: Of the $20.5 billion in loans granted by Obama's Energy Department and funded by Obama's stimulus, 80 percent of them went to companies that were either run by or primarily owned by Obama financial bundlers.

Auto bailout: At the behest of auto unions that gave millions to his campaign, Obama interfered in the bankruptcy process, violating the property rights of Chrysler's secured creditors, all so he could sell the firm to a foreign auto company.

There is a threat to our country's history of strong bottom-up economic growth. But it is not from a tax code that takes too little money away from hard-working Americans, or even from the rich. It is from politicians who want to reorganize the economy from the top down as they see fit.