Phil Gramm: The Obama Growth Discount - WSJ.com

Phil Gramm: The Obama Growth Discount - WSJ.com

Excerpt:

"The recovery is being stifled by the unprecedented policy changes undertaken by this administration and the previous Congress. Whether in absolute or relative terms, whether in comparison to our own experience or the performance of our competitors, America's wealth-producing ability has been diminished.

Until last November's elections and the December compromise in the lame-duck Congress, it seemed certain that marginal tax rates on income, dividends and capital gains would rise dramatically. It was not until the off-year election results provided business with some confidence that the administration's ability to further implement its policies through legislative action was at an end that the recovery began to show modest improvements. In short, the 2010 elections imposed a cap on the downside risk associated with the administration's policies and slightly reduced the Obama growth discount.

A good trial lawyer might argue that the star-struck millions who voted for Mr. Obama knew or should have known that his election would mean a larger, more powerful federal government, a massive increase in social spending, and higher taxes on the most productive members of American society, and that the voters got exactly what they voted for. Elections have consequences.

But it is equally clear that Americans did not realize that the price they might pay for big government would be 15.7 million fewer jobs and $4,154 less in per-capita income. Big government costs more than higher taxes. It is paid for with diminished freedom and less opportunity. You can't have unlimited opportunity and unlimited government."