Diary

Is the Democratic Party capable of improving America’s current economic conditions?

Two contrasting visions of how to manage the economy will be competing for our votes in November of 2012.  America’s number one priority is to devise and implement effective solutions to create more jobs and turn around our economy.

In ancient times through the 17th Century, Alchemists claimed the ability to magically turn common metals into Gold or Silver.  In the early 21st century, America’s President Obama strongly aided by the ruling Democratic majority in Congress magically claimed that the passage of the $800 Billion Stimulus package and the implementation of traditional Liberal/Progressive economic policies would create a turn around that would lead to lower unemployment and an improving economy.

Given the ongoing negative headlines regarding the continued failure of Obamanomics, trust in any significant positive outcomes coming from Keynesian inspired Democratic economic theory seems as equally absurd as believing in the powers of Alchemy.

One of the two following competing economic ideologies will best serve our country in the future.  The following is a brief overview of the main tenets of each of the two leading competing approaches to managing the economy:

Obamanomics/Liberal:                                           Reaganomics/Conservative:

 

Increase Government Spending

 

Reduce Growth of Government Spending
Increase Taxes

 

Reduce Income and Capital Gain Taxes
Increase Government Regulation

 

Reduce Government Regulation
The power of the organizations such as Unions predominate

 

The power of the individual predominates
Increase the money supply to lower interest rates

 

Control the money supply to reduce inflation
Government plays an expanded role in providing investments in the economy

 

Private Sector takes the primary responsibility to allocate Capital

Reagan’s policies in the 1980s created an economic triumph while Obama’s approach today is failing us miserably.  Even with the hard evidence since the passing of the Stimulus package and other similar measures of the failure in practice of Liberal Economic policies, it is unlikely that President Obama and the Congressional Democratic leadership will choose to change course.  They are ideologically incapable of offering alternative solutions to our economic challenges outside the realm of their traditional liberal thinking.

A long term continuation of current policies will mean a permanent lowering of American living standards.  Key segments of society such as the middle class and the poor are under attack on a daily basis. In Europe we have seen ugly scenes of civil unrest. In America, this summer has been touched with pockets of random violence and anti-social behavior. George Clooney, Warren Buffet, Jeffrey Immelt and the majority of the Main Stream Media may be happy with the current environment – many of them are wealthy enough to not be affected by the downturn, however, the rest of us are none too pleased.  Let’s show them what we think and feel in November of 2012, by voting to change our nation’s direction by choosing a new President with views similar to a leader that implemented solutions already tested as successful – former President Ronald Reagan.

Blog: Move the Political Pendulum Right

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