The United States faces an abundance of problems, a weak economy, an abundance of public expenditures, out of control entitlements, and an over-expansive foreign policy, to name a few. These issues are getting worse, not better, with no end in sight. In recent decades, politicians of nearly every conceivable stripe have offered solutions, all to no avail. The only real solution to America’s woes is a return to Jeffersonian principles.
Since the days of Grover Cleveland, who ended the harsh Panic of 1893 in less than a full term in office, the federal government has used Keynesian economic theory, or intervention, to fight every economic downturn. The results have been less than spectacular. What began as a severe recession in 1929 became the “Great Depression,” the worst economic calamity in American history. Many people will be surprised to learn that the Great Depression came after the government stepped in with its bag of tricks. It did not end until the latter half of the 1940s.
After the Panic of 2008, the government bailed out Wall Street to the tune of $700 billion. In 2009, the Obama administration kicked in another $800 billion in a stimulus designed to jump-start the sagging economy. A total of $1.5 trillion in stimulus money has been apportioned. The economy is still in a state of mild depression with a net job loss during the Obama presidency. Continue reading