I have just begun reading the new book "The End of Prosperity" by Arthur Laffer, Stephen Moore, and Peter Tanous.
In the very first chapter titled "The Gathering Economic Storm", the authors point out that the U.S. economy encountered "Four Killers of Prosperity" during the two tumultuous periods during the 1930s and 1970s.
Those 'Four Killers' are:
- Trade ProtectionismUnfortunately, a couple of those killers have already struck, and Obama isn't even in office yet. However, very soon all of those killers will be paroled, and sold to the public as the cure to economic ills.
- Tax Increases and profligate Govt Spending
- New Regulations and increased Gov't intervention in the economy
- Monetary policy mistakes
Lets run through those Killers again...
- Trade Protectionism - Check! Colombia can kiss its trade pact goodbye, and when the newly empowered Unions get their way, NAFTA will be the next big target
- Tax Increases and profligate Govt Spending - Check! Obama has paid lip service to delaying Income Tax increases, but there are many other ways to raise taxes, or if you live in California, "fees". Also, if you think that the Dems won't continue spending gov't oney like drunken sailors, now that the GOP has been kicked out of the budgetary bar, you must be high....
- New Regulations and increased Gov't intervention in the economy - Check! Since the new Dem bogeyman for a lot of this fiscal mess is "de-regulation", you certainly know what will be coming soon to a bureaucracy near you....more rules!! Welcome to the Nanny State...make yourself at home, just don't sit on the furniture.
- Monetary policy mistakes - Check! Already taken care of by the current administration. All Obama has to do is mind the store, and not advocate for a strong dollar.
Laffer, Moore, and Tanous may call them the Four Killers, but I think they will be refered to in the future as the Four Horsemen of the Obacalypse...