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Finance...
Gridlock
Isn’t So Great
By Jeff Carter
I
remember in the halcyon days of the
Bill Clinton Presidency, many told me, “gridlock is good”. Republican
controlled houses of Congress with a Democrat President. “Nothing can
get
done.”, they said. “It’s better for working families.”
Well,
some things did get done and as
we look at certain segments of the Clinton foreign policy, there were
seeds for
quite a bit of damage later on. But, with regard to economics and
fiscal
policy, Clinton was much more interested in being popular and
preserving power
than he was a hard core leftist. He let the Republicans lead the way on
the
economy.
From
2008-2010 my friends were in my
face, “See”, they said, “I told you so.”. The Democratically monopoly
of
Congress combined with a hard left Democratic President totally screwed
up the
American economy. “Gridlock is good”, they said.
Stimulus, Obamacare, Dodd-Frank, and the
aggressive form of government they practiced wreaked havoc on years of
established practices.
Result;
businesses and consumers
froze. When businesses could, they pivoted and allocated resources to
places
that were growing. Like Asia, India and Brazil.
Instead
of using the time honored
practice of bankruptcy and eventual credit work out for recalcitrant
banks, we
chose to save them. Now we have heavily damaged banks that are like a
bad
penny. They keep coming back.
There
are events that policy makers in
the US cannot control, like those in Europe. However, pursuing correct
fiscal
policy would at least give “working families” a chance to insulate
themselves.
The path the Democrats have chosen is no different than charging uphill
into a
machine gun nest. Americans are dying on that hill.
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