A new study, the conclusions of which have met with the approval of Nobel laureate economist James Buchanan, says Barack Obama is repeating many of the same mistakes that turned the simple economic downturn of the 1930s into the Great Depression.
In particular, the authors, economists Charles Rowley of George Mason University and Nathanael Smith of the Locke Institute, claim that the White House’s plans to pour hundreds of billions of dollars of cash into the economy will undermine it in the long run. They say that by employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years.
Obama’s economic blunders are so severe, say the authors, that the United States is at risk of literally slipping to third-world status.
Although the authors support the Federal Reserve’s moves to slash interest rates to just above zero and embark on quantitative easing, pumping cash directly into the system, they warn that greater intervention could set the US back further. Rowley says: “It is also not impossible that the US will experience the kind of economic collapse from first to Third World status experienced by Argentina under the national-socialist governance of Juan Peron.”
It’s almost as if Obama doesn’t want the US to have a Capitalist economy, or something.
Nobel laureate James Buchanan…said: “We have learned some things from comparable experiences of the 1930s’ Great Depression, perhaps enough to reduce the severity of the current contraction. But we have made no progress toward putting limits on political leaders, who act out their natural proclivities without any basic understanding of what makes capitalism work.”
He understands Capitalism just fine. He just sees it as inferior to Socialism, and doesn’t care how he gets there.