Economist Richard Rahn is warning of a darkening economic future in America as spending under Barack Obama and Congressional Democrats reaches new extremes of recklessness. First comes the death of the dollar as the international currency, along with strangulation of U.S. government revenues from the private sector. When a supply-sider like Rahn says deficits now really do matter, and matter a lot, it shows that the tolerable spending limit truly has been reached. Eventually, even a robust economy cannot grow out of the hole dug by spendthrift politicians. "Eventually" has arrived.
Next come inevitably higher taxes, and not just on the rich. Small businesses already are saving any profits--knowing their taxes will be going up--rather than expanding and hiring new employees. The increasing resort to contract employees is a direct result of business wariness. When the reality of higher business and personal taxes arrives, things will get worse. Anemic growth is the best we can hope for in that case. A new recession, or worse, is just as likely.
Along with the growing tax burden comes increased government direction and a concomitant rise in the burden of paperwork--more forms, less human interaction and less customer service. This trend will leave us all on permanent "hold", as it were, and futilely "pushing '0' for more options." As Disraeli said, a crucial difference between left and right is that conservatives make you fill out less paper. In practice, that is not a small difference. It is the difference between freedom and petty tyranny.
Moreover, as government demands more and more data Administration promises not to despoil your privacy have about as much credibility as last year's campaign promises of "transparency" in government and an end to partisanship.
Next comes a decline in America's ability to defend itself militarily. "Make no mistake," as the President likes to say, when Congress goes hunting for funds to support its runaway domestic spending--in addition to taxes--it will zoom in on the Defense Department budget. Look around; there are two reasons European and Canadian governments lack strong militaries. First, they can't afford to have them and still sustain their huge social spending; and when the time comes, neither will we. The second reason they don't maintain a credible military is that they think they can depend on us. But when we strip our military of its technological edge and its response capacities, who will we depend on?
Our adversaries in the world should be cheering for passage of Obamacare, along with more "stimulus" spending. They already are demanding a nice, pricey cap and trade program and billions for additional foreign aid--redistributed in the name of climate justice. The more we spend, the better for them.
Meanwhile, the health bill seems sure to blunt the sharp edge of advancing medicine in America and degrade the level of care that most people get today, all in the vain effort to provide for everyone else and restrain costs. Again, the rest of the world depends on us for the most medical breakthroughs that lengthen and improve life. With Obamacare in place and destined for immediate and perpetual expansion, where will we turn?
The massive health care bill, a product of secrecy and partisanship, is probably the worst piece of legislation of any kind to go through Congress in our lifetimes. It is so complex and contradictory that it will be left largely to the caprice of unelected bureaucrats to interpret and implement. All that is sure is massive government control.
It will blight the future of the younger generation, folks in their teens and twenties who right now are so out of touch--so clueless about how they are going to get hit--that they continue to shore up Obama's otherwise sagging popularity.
Someone needs to tell them of the danger: between now and rigamortis, you face a lifetime of regulatory rigamarole, lowered liberty and shrinking opportunities. Welcome to the Land of Hope and Change, Mr. Obama's Pleasure Island.
