I carefully considered whether or not to disagree (publicly) with Dan Mitchell, who is nearly always correct on so many things. But here goes.
In his latest article at Townhall.com, Mitchell is trying to say that the Washington Post has finally admitted something they haven’t been willing, at least before the election anyway, to say: the economy stinks, and it’s Obama’s fault:
Well, now that the election is over, even the Washington Post is willing to admit that Obama’s economic performance is dismal. Here’s a remarkable chart showing that growth is far below the average.
Mitchell reiterates the obvious: the economy hasn’t recovered from the Great Recession, and it doesn’t look like it’s going to any time soon. In fact, he thinks the stinky economy is going to be with us for years:
I fear permanently lower growth is the legacy of the Bush-Obama years. We now have a substantially bigger burden of government spending, and things will get worse rather than better in the absence of real entitlement reform…
To make matters worse, Obama wants higher tax rates and more double taxation of saving and investment…
As we move closer and closer to European-style economic policy, it should be no surprise that we get anemic European-style economic performance.
So far, so good. I agree with all of this (as I usually do when Mitchell writes something). But then he goes astray:
We know the recipe for growth and prosperity. But the political elite is oblivious or doesn’t care. (my emphasis)
It’s impossible for the elite not to know. Mitchell thinks that because his economics is sound, they should listen to him and do something intelligent for a change. He leaves out entirely their intent. They intend to do us harm by slowing down the economy. It’s deliberate. Mitchell fails to consider the point of view expressed by Robert Welch so many years ago.
Mr. Welch called them “insiders” rather than the “political elite.” I like “insiders” better. He starts off his speech:
A part of [their] plan…is to induce the gradual surrender of American sovereignty, step by step and piece by piece, to various international organizations of which the United Nations is the outstanding but far from the only example.
This would be done through “greatly expanded government spending.” Through “higher and then much higher taxes.” Through “an increasingly unbalanced budget despite the higher taxes.” Through “wild inflation of our currency.”
Mr. Welch said these things in 1974. Dan Mitchell was a junior in high school. Instead of looking forward, sometimes Mitchell would be served better by looking back and comparing Mr. Welch’s predictions with history. He might change his mind when he says the political elite is oblivious or doesn’t care.