President Obama accuses Republicans of clinging to the failed policies of the past. But the Obama administration has revived the practice of picking winners and losers in the marketplace. That policy didn’t work in the 1930s and isn’t working today.
Policy wonks believe that businesses are congenitally short-sighted — that businesses must be prodded to invest in infrastructure and tomorrow’s technologies. But it’s not true. The mobile phone industry continues to spend tens of billions of dollars acquiring spectrum rights, building nationwide networks, and developing next-generation technologies. Businesses wisely make long-term investments when there are good prospects of success.
The Obama administration clings to ideas that even FDR’s treasury secretary, Henry Morgenthau, said didn’t work. Every available means is being used to undermine natural market forces: loans are being made that will never be repaid, regulations and taxes are being enacted to punish select industries, corporate bondholders are being expropriated, waivers are being granted to individual companies, and private businesses are being squeezed out of markets.
No wonder the U.S. is experiencing the worst economic recovery since the 1930s. Who wants to invest in businesses when the federal government is running around trying to make winners out of losers and losers out of winners?