The demise of Obamunism, over at the Atlantic:
It’s hard to overstate how much today’s GDP report blew up our understanding of the recovery. The recession was deeper than we knew, and the economy is weaker than we thought. We weren’t making new jobs, because we weren’t making new things, period. The economy grew less than 1% in the first half of 2011.
Yesterday, analysts thought the economy was expanding by 2.5% a year. This morning, they learned GDP grew by only 1.6% in the last four quarters. This is a remarkable discovery. It’s the difference between thinking we’re expanding at a decent, if disappointing, pace, and knowing we’re growing around half our historical norm…
As I said waaaay the heck back in 2010, my guess is that when the history of this time is fully known and all the data analyzed, it will be judged that we never emerged from the recession which officially began in 2007. Sure, some “growth” happened – goosing the economy with trillions in borrowed and printed money can do that – but there was no real, organic growth. We didn’t, that is, start creating wealth – not in any sense faster than we were losing it. Here’s a clue – only wealth can make you wealthy, and wealth is only (ONLY!!!!!) things you make, mine or grow. What is killing us is that our tax and regulatory climate has made it almost impossible to create wealth in the United States…we’ve been killing the goose that lays our golden eggs.
Our whole economic policy has been to reward the most those who make, mine and grow the least. Whether its a welfare recipient, “too big to fail” bank, favored special interest or our increasingly regressive bureaucracy, the rewards have been going to people who just consume or who play around with money. Until we start rewarding most those who farm, mine and manufacture, this situation will just continue to get worse.
An entire shift in our economic thinking is required. We have to cut the size of government; eliminate huge swaths of regulations and the bureaucrats who enforce them; call a halt to “NIMBYism” and environmentalism which puts walls up against new farms, new mines and new factories; adjust our trade policies so we’re no longer allowing slave-driving tyrants to dump their exports on us; massively increase domestic energy production so that we’re no longer sending money over seas just to drive our cars and turn on our lights…and we need to tell those in America who are not working that they’d better show us a missing leg, or something…we’re not going to subsidize daytime talk show viewing. Everyone who can work, works…or they don’t eat. Welcome to the real world, everyone…the liberal fairy tale is over, and its time to get back to being Americans.