Try to keep this news from our President Elect—we wouldn’t want to kill his socialist buzz—but the the story’s never going to change: the freest economies are the healthiest:
As former Texas Longhorn coach Darrell Royal liked to say, when faced with a challenging bowl game, you need to “dance with the one who brung you” to the party. Mr. Royal meant that even when faced with daunting new challenges, one would be well advised not to abandon a winning formula that had already brought success. That is good advice as the United States and other economies face the daunting task of restoring economic growth.
The “party” in this case is the six decades of increasing prosperity that the world has enjoyed since the end of World War II. U.S. Gross Domestic Product was about $1.6 trillion in 1947 (valued in 2000 dollars), a little over $11,000 for every man, woman and child. In 2007, it was $11.5 trillion, or about $38,000 per capita. That’s almost a doubling of average incomes each generation, made possible by the free market’s efficiency in allocating capital and labor.
Capitalism, the U.S. dance partner during this period of unprecedented economic growth, is, by the accounts of political leftists, no longer the smartest looking companion on the dance floor. They like the looks of other systems like socialism much better. Yet despite recent setbacks, they would be hard pressed to deny that capitalism steps out more nimbly than its rivals, and keeps up with the music far more surely.
Shall we compare the top five to the bottom five?
Hong Kong, Singapore, Australia, Ireland, New Zealand (the US is 6th) versus North Korea, Zimbabwe, Cuba, Burma, Eritrea.
These dregs-nations are political basket-cases as well as economic ones. Their people enjoy no civil liberties, as we understand the term, and are forced to starve to death for their troubles.
Why did we miss the top 5 this year?
“The U.S. slipped one spot to sixth place this year because of increases in both tax revenue and government spending as a percentage of GDP.”
President-elect Barack Obama will go to Capitol Hill on Tuesday to meet with Senate Democrats and make his case for how he wants to spend the second half of the $700 billion bailout, two Democratic sources said.
Obama will attend the weekly lunch of the Democratic senators in what will be his final visit to the Senate before his inauguration next week, according to the transition team. He’s also expected to continue to push for his economic stimulus plan.
Remember during the primary campaign when Obama was asked about raising the capital gains tax? Presented with the evidence—evidence!—that raising capital gains taxes reduces income, all he could talk about was fairness. What’s fair about everyone doing worse, just to make sure some don’t do better?
Boy, he talks well for an absolute moron. Or a socialist. (Not that the two are mutually exclusive.)