The current Administration has been practicing what is popularly known as Keynesian economics for three years now, and the economy is not responding or recovering as expected from the 2009 recession. The infusion of Government money has done little to create lasting jobs or increase economic activity enough to produce the tax revenue necessary to reduce deficits. Those who practice conservative style of economics say this is because only the private sector can produce long-term, wealth creating jobs.
On Sept 13, Mr. Peter Schiff, CEO of Euro Pacific Capital, testified before Congress on how "he has been fined thousands of dollars by regulators for hiring too many people" and how "regulators have required him to stop hiring all together." He "followed up these shocking revelations with straight talk on how exactly big government policies choke free markets. He also went on to explain in detail exactly why a number of liberal ideas are disastrous in reality."
His comments are some of the best presented that I’ve heard on how government spending in general and stimulus spending in particular fails to deliver jobs and wealth. The interplay with Dr. Boushay shows the essential disconnect in the way our current Administration understands the way an economy works and how actual business people understand commerce and economy. Mr. Schiff has it exactly right.
Be sure to watch the second video, especially at about the 13 minute point. See Mr. Schiff here: ceo-congress-i-was-fined-because-i-hired-too-many-people
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