The centerpiece of President Obama's State of the Union was something he called "middle-class" economics. Not surprisingly, Obama’s definition of a “pro-middle class” economic policy is a laundry list of new spending programs and mandates. Obama also promised new spending on scientific research, infrastructure, and (of course) continued intervention in the affairs of other nations. Other than raising a few taxes on the "rich," he did not spend a whole lot of time on how to pay for his version of ever-expanding government.
Obama, like most in DC, ignores what Henry Hazlitt called "that which is not seen." What President Obama does not see are the businesses and jobs that are not created because the government took resources out of the economy--either directly by taxes or indirectly by incurring debt. President Obama also ignores a history of failure of government programs and mandates to achieve their stated goals, while oftentimes making the problem worse (ObamaCare anyone?).
If Obama truly wanted to help the middle-class, he would be looking for ways to reduce the size and scope of government. A true "middle-class" economics would also support reforming our nation's monetary system so middle-class families’ standard of living would no longer be eroded by the "inflation tax."
Campaign for Liberty is working to take the first step toward monetary reform by Auditing the Fed. Please join our efforts.
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PDFTags: President Obama, Economics