The Cato Institute’s Mark A. Calabria points out limitations of President Obama’s new economic policy proposals:
“President Obama seems inclined to use TARP money to fund job creation in areas ranging from green industry to small business. Unfortunately, his proposals are an extension of the flawed ideas that did not work in the stimulus. They are just as unlikely to be effective now.”
“While President Obama continues to claim that the private sector is the key to job creation—a correct analysis—the details of his proposals undercut his words. The reason that many employers, especially small business, are sitting on the sidelines is quite simple: they are concerned and unsure about what their operating environment is going to be. In addition to the basic uncertainty in the economy, employers have no sense of what their health care costs are going to be, or what they will have to do comply with new EPA regulations, or how financial ‘reform’ will impact them, or by how much ‘card check’ will raise their labor costs. Of course, the only thing for certain on taxes is that Obama promises more of them. If President Obama truly cares about private sector job creation, then he should consider starting with ‘first do no harm.’”
Rand Paul opposes Obama policies such as socialized medicine, cap and trade, financial bailouts, and card check that tax the economy with added uncertainty. The unpredictability of market capitalism is miniscule compared to these government schemes. Further, capitalism is many times more productive and cost-effective than centralized planning of the economy.
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