...the fountain of economic growth is to expand the opportunities for voluntary, mutually beneficial exchanges (MBE).Obama and his gang fail on every point, and fail as badly as one could possibly fail. The ideology which drives the Obama agenda pushes the economy away from healthy and sustainable growth, toward cronyist favouritism and top-down fiat. The Obama way cannot continue for long without serious catastrophe.
Lower tax rates do so by decreasing the barriers to domestic trade. Income, sales, profits, and capital gains taxes are the equivalent of tariffs on domestic economic activity. Lower tax rates, like lower tariffs, increase the opportunity for trade, or MBEs.
Reducing government spending, especially on transfer payments, tax credits and the like, also increases the opportunities for growth. Government cannot increase MBEs by taking money from some people, and then handing it to others. These are involuntary, or one-side exchanges, and therefore generally decrease our wealth and economic activity.
Monetary stability is also critical for the discovery of MBEs. The more certain we are about the future buying power of the dollar, the easier it is to do business, invest and save. Hence, more business gets done, and more jobs get created.
The rule of law is a vital government function that increases opportunities for MBEs. Upholding contracts, protecting property rights, prohibiting arbitrary use of government power to seize one’s property or to give the politically connected unfair advantage in the marketplace all contribute to economic growth.
Regulations which reduce the risk of fraud by requiring full disclosure or promulgating financial accounting standards reinforce the rule of law. By contrast, regulations that seek to dictate economic outcomes, such as price controls, impose involuntary exchanges, and thereby shrink the opportunities for MBEs. Regulations that restrict economic activity directly reduce economic growth by forbidding exchanges that otherwise would have occurred. _Forbes
Persons who voted for Obama were either particularly stupid, particularly young and inexperienced, particularly uninformed and indoctrinated, or particularly greedy for power and advantage. Anyone who imagined that an Obama agenda would revive the US and global economy and provide a healthier environment for markets and trade, was deluded. For a few of them, there is time to learn and change.