I think Forbes magazine has to be one of the most sensible out there right now. And we Americans could use a big dollop of optimistic sanity right now.
Read this fabulous Forbes article about how Obama’s out-of-control Marxism is paving the way for the next Reagan Revolution.
For what we are experiencing, as the economy digests the big Obama boondoggles of his first term and the big statist plans for his second, is the renaissance of the relevance of the four pillars of Reaganomics. No longer will it be necessary for some political aspirant to put a twist on the old supply-side ideas, to go for some clever repackaging and “updating,” to think outside of the box á la the blessed authors of Grand New Party from a few years ago. The old warhorse ideas will be precisely up to the task at hand.
Could you imagine what would happen if we cut taxes, reined in regulation, stabilized the dollar, and recommitted to world trade? Which is to say: what if the private economy were freed of impediments? The outsized growth that we last saw in the 1980s and the 1990s would come again today. Out of the trough of the recession in the 1980s, the economy grew 17% in three years, about triple the rate of the Obama recovery from the Great Recession. And after that momentous start in the mid-1980s, there was another fifteen years of real growth at 3-4%. This is the minimum we should expect from a program based on the four pillars of Reaganomics given our dilapidated state today. Maybe we could grow at 4-5% for the long term, since our current GDP denominator is so dismal, so low.
Fifteen years at 4% growth would add so much wealth and so many resources to the economy that virtually all the problems which have this country in the doldrums right now would fade from the scene. It would be impossible to keep running budget deficits (as the 1990s proved), because of the rush into the private sector. The big entitlements, Social Security and Medicare, would become both less relevant (on account of everyone’s private prosperity) and more solvent (on account of a government that can only get rich in such a context).
If a real revolution does not get here first, of course. Than all of what the Forbes article suggests will be implemented in spades after victory without any significant Left opposition whatsoever in Congress. Or elsewhere, I fear.
Such are the times we live in.