Many traditionally looked to the government as if its job was to manage the economy. It wasn’t. The Constitution is clear on that. Not only does it state that money is to be coined, the Tenth Amendment specifically restricts our government from assuming any power or role not delegated to it by the constitution – that power being reserved to the states and the people. Aside from taking an unconstitutional role in the economy, we’ve continually seen a pattern where we give government a dollar, it provides $0.75 in goods and services, and we then expend another $0.50 of effort to reap the rewards.
According to the US Bureau of Economic Analysis, more than half of our economy is now state and local government. Any job the government provides costs more than it would in the private sector, if only due to more administrative costs. We pay for those expenses through taxes and inflation. That means you take home less and less every year.
Contrary to what some believe, the bailouts did not work. All we did was paper over the mistakes that should have caused major financial institutions to collapse with taxpayer dollars and government credit. Contrary to the purpose of helping the economy, it hurt us in the long term by concealing malinvestment and otherwise rewarding unprofitable behavior.
When Congress picks winners and losers, we all lose in the long term.
The last time we shrank the federal government was when Calvin Coolidge lived in the White House. And it helped the economy. It’s time to do what’s been proven to work.