Written on Monday, March 12, 2012 by David L. Goetsch
By promoting an entitlement mentality, liberals in Congress and the White House are sowing the seeds of America’s destruction. Because of an ever-growing list of social programs, subsidies, and entitlements, more than half of all Americans now look to the government for at least a portion of their sustenance. As a result, many American’s have come to view government as the solution to their problems rather than the cause of them. The principles of limited government that undergirded Ronald Reagan’s Republican Revolution are being steadily undermined by the seductive allure of government handouts. This dangerously misguided trend promotes an entitlement mentality in a country that has long been known for its positive work ethic. The entitlement mentality, in turn, encourages the growth of government and the cycle continues, creating a downward spiral toward disaster.
America became an economic superpower not by accident, chance, or luck but because it was established with a free-market economy and people who thrived in an environment of economic freedom. These two pillars of America’s economic success—a free-market economy and economic freedom—hold the key for reversing America’s descent into insolvency. The only contributions to an economic recovery needed from government are: 1) get out of the way, 2) get out of the pockets of Americans, and 3) stop over-regulating businesses and the lives of American citizens. Sharp reductions in spending, taxation, and regulation will do for America’s economy what the government can never do: unleash the power of the free market, encourage entrepreneurship, and reinvigorate America’s work ethic.
After decades of prosperity, America’s economy is being undermined by a rapidly mutating government that devours initiative, drive, innovation, and the capital needed to seed an economic recovery. Too many Americans have bought into the increasingly discredited philosophy of the left that the government is the answer to all problems. No one exemplifies this misguided philosophy more than Maxine Waters, the Democrat Congresswoman from California. During the height of the budget reduction debate in August and September 2011, Waters indulged in a flight of fantasy and proposed increasing government spending rather than cutting it.
What is ironic about the tax-and-spend philosophy of the left as exemplified by Maxine Waters and President Obama is that not only do they fail to understand economics they don’t even know their own history. The worst tax-and-spend Democrat before Barack Obama was Lyndon Baines Johnson (LBJ). But even LBJ knew that cutting taxes was the best way to stimulate a weak economy. In his book, American Business, 1920-2000: How it Worked, Thomas McGraw wrote this about LBJ: “Johnson continued Kennedy’s efforts to use aggressive tax policies to stimulate the economy. The Revenue Act of 1964 cut taxes by $11.6 billion–$9.2 billion for individuals and $2.4 billion for corporations. In anticipation of more money flowing into the economy, businesses increased their inventory levels. As personal incomes swelled, consumer spending increased, and by 1965, the U.S. gross national product had expanded by over 25 percent …During the same period, industrial production increased by 27 percent, and corporate profits grew by 64 percent. The prosperity resulted in the unemployment rate’s dipping below 4 percent in 1966—a rate not seen since 1953.”
In spite of evidence like this that is readily available from the history of their own party, President Obama, Maxine Waters, and their fellow liberals continue to view the solution to America’s economic problems as spend, spend, and spend some more. In spite of the demonstrated failure of the hugely expensive stimulus bills, Obama, Waters, and their colleagues on the left still propose that Congress stop shooting the American economy in the foot and start shooting it in the head. All that this kind of thinking has brought America is an entitlement mentality that will make it increasingly difficult to do what is necessary to bring about an economic recovery.