“The Obama budget envisions an explosion of economic growth as the country recovers from the current recession — more than 4 percent a year from 2011 through 2013. This will supposedly be sufficient to halve the $1.75 trillion deficit it projects for 2009. But there is something off here,” John Steele Gordon writes at www.commentarymagazine.com.
“Many of the policies Obama and his team are pursuing, capand-trade [a tax on carbonbased energy] being the most obvious, are likely to interfere with growth in exactly the sectors in which the United States will need it. If the goal is growth, as it should be, the role of government should be to determine ways in which its conduct can fuel that growth. And that is precisely what Obama is not doing,” said Mr. Gordon, author of “An Empire of Wealth: The Epic History of American Economic Power.”
“The cap-and-trade tax will inescapably and adversely impact the economic recovery and future growth rates. If passed, it will act on the economy as a whole exactly the way a governor acts on a steam engine, increasingly resisting any increase in revolutions per minute. With the supply of licenses to emit carbon dioxide fixed, the price of the permits will inevitably rise as economic activity picks up. That means that any increase in overall demand will increase the price of energy, and thus, in a feedback loop, nearly everything else. That will damp down demand. The more the economy tries to speed up, the more the carbon tax will work to prevent it from doing so.
“The same is true of many of the other policies embedded in Obama’s budget. He will raise taxes on high earners rather than lowering them to give those earners an incentive to put their money into the private markets. He intends to increase the number of federal regulations on private business and industry, rather than reduce the number of those regulations for the purpose of eliminating barriers to growth. Taken together, these counterproductive actions will make job creation in the private sector difficult, because they will make it more expensive to hire new workers. The Obama plan will, in general, make it more expensive to do business at a time when one would think he and the nation as a whole have every reason to make it as inexpensive as possible to do business.” the Pentagon Web site — www.defenselink.mil — for the report. We did. It wasn’t there,” Mr. Hayes said.
“It hasn’t been released. And it now looks like the Pentagon is attempting to hide it further behind a bureaucratic blind. In an e-mail two weeks ago, we were told that in order to see the report we would have to submit a Freedom of Information Act request — a process that can take months, even years. Why did the self-described ‘most transparent administration in history’ suddenly reverse itself? Where is the report?…
“As it happens, the continued suppression of the Gitmo report took place during national ‘Sunshine Week,’ a ‘national initiative to open a dialogue about the importance of open government and freedom of information,’ sponsored by the American Society of Newspaper Editors.
“In a nod toward increased government openness, Attorney General Eric Holder announced that he would order government agencies to lean towards openness and transparency when considering the public disclosure of government information. It’s a move that won him high praise from transparency advocates. But the Obama administration risks losing that good will — or at least putting it at risk — if it engages in selective openness.”