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17th February
2009
written by Sean Noble

The Arizona Republic carries a great op-ed by Scottsdale resident and businessman, Jim Ward, which couldn’t be better timing for the day before Obama’s visit to the Valley.

When the White House advance staff is preparing for a visit, there is a fairly comprehensive briefing book that is put together for the President and senior staff to review – usually in the air on the way to location.

Without question, Ward’s op-ed will be in the President’s briefing book.  And if Obama reads it, he’ll get an education.

To wit:

The stimulus package passed by Congress will damage America for generations and has been unleashed under the aegis of short-term crisis management.

The fact is that the U.S. recession will be long, hard and worse than the average downturn. A study presented this past month by Carmen M. Reinhart from the University of Maryland and Kenneth S. Rogoff from Harvard University confirmed that recessions triggered by financial crisis are much more severe than other recessions and last up to an average of five years with little relief from government bailouts.

Yet political expediency currently outweighs common sense and is set to start a devastating cycle. Government spending will increase dramatically, initially as a Keynesian response to the economic crisis and subsequently due to the policies of a left-leaning government.

Tax receipts will be down materially for several years. The cost of new liberal programs will dwarf the cost of the recession. National debt will spin out of control and materially exceed gross domestic product.

Within 24 months, taxes on highly productive individuals and businesses will be raised dramatically to reduce the deficit, dampening entrepreneurial initiative and corporate risk investment.

This, in turn, will make American products and services increasingly uncompetitive in the global economy, resulting in accelerating job losses with private-sector job creation falling well below historic levels for a generation.

Well said, Mr. Ward.  Let’s hope the White House is learning.

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1 Comment

  1. 17/02/2009

    Thanks for sharing this, the op-ed is right on. Unfortunately, I highly doubt whether Obama or those in his administration will change their course. They are too focused on doing “something” and quite honestly, I think they actually want to cripple capitalism and expand the power of government by creating more dependency (as jobs continue to be lost, more and more people will be turning to gov’t for help). I hate the thought that my kids and their future kids will be the ones paying for the bulk of these mistakes.

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