Economic Prosperity vs. Economic Mediocrity – What will America Choose?

As food prices continue to soar in our supermarkets, as gasoline prices continue to skyrocket at the pumps, as the housing market continues to sputter, and as unemployment continues to be very high – around 9% to 10%, have you ever wondered why?  What has happened to the American economy?  Must the American economy continue to stagnate?  Are America’s best years behind us?  Is the American dream no longer possible?  Are we stuck in an economic rut for ever?  Or, is there anything we can do to re-start the engine of American prosperity that created the most productive and prosperous nation ever to exist on the earth?  Let’s talk more about these topics now …

First, let’s tackle the question of what has happened to America.  Why are we experiencing food and energy inflation, a very anemic housing market, and very high unemployment that doesn’t seem to go away?  The answer is very simple.  Over a number of years, America has decided to go down the “social road” to welfare state socialism – the nanny state – progressive socialism – whatever name you prefer to use.  The “seduction of socialism” is pervasive and subtle.  It’s affected (and infected) our culture, our politics, and our economy.  It has subverted our Constitution and the Rule of Law, all in the name of fairness and social justice.  It is now in the process of bankrupting America morally, culturally, politically, and economically.  Free enterprise is being stifled and our economy is slowly unraveling.  

By the way, for readers that want an in-depth look at the “seduction of socialism,” they can read my 2009 book America’s Economic War.

The proximate cause of our economic problems lie with the fiscal and monetary policies put in place by those in government who advocate progressive socialism or who inadvertantly support it.  For example, the Federal Reserve’s policy of QE2 (Qualitative Easing 2) means more money is being effectively placed in circulation, thereby making all dollars in circulation worth relatively less.  Another name for QE2 might be IC (for inflation creation).  By the way, QE1 was the policy followed in 2009.  That’s just one problem.

Fiscal policies including taxes on income and capital formation have a dramatically negative impact on new business creation, job creation, and economic growth.  They also tend to decrease revenues to the Federal government, as well as to State and local governments putting increasing pressures on their budgets as well.  High deficit spending also contributes to our economic problems, especially given that stimulus spending has such a low economic multiplier compared with private sector spending.

In a short blog post, there isn’t ample space to cover fiscal policies in detail.  For readers who want a better understanding, you can read my 2010 book Choosing the Good Life. 

The bottom line – America can choose the good life in 2011.  It can choose economic freedom, economic growth, and prosperity.  America needs to choose different fiscal and monetary policies, policies that are pro-growth and based in economic freedom.  If we do, the change will be positive and dramatic.  We can regain our prosperity.

Choosing the Good Life Blog by Gerard Francis Lameiro, Ph.D.

Bookmark and Share
This entry was posted in America's Future, Big Government, Choosing the Good Life, Economic Growth, Economy, Inflation, Job Creation, Jobs, Limited Government, Poverty, Prosperity, Taxes, Unemployment. Bookmark the permalink. Comments are closed, but you can leave a trackback: Trackback URL.