This chart epitomizes the definition of insanity according to Einstein, “[D]oing the same thing over and over again and expecting different results.” Compare the duration of unemployment in the 70′s, when Nixon declared that, “We are all Keynesian now,” to the 80′s and 90′s when America had the largest economic growth during peacetime. Those 20 years of economic growth resulted during a time when taxes were dramatically reduced, entitlements were reformed, and the budget was balanced. It was not single party that brought this growth about, but a single idea. The idea that our country’s economic engine runs better when the private sector is in the driver’s seat.
Unfortunately we currently have an administration that believes our economic engine should be driven by the government. It believes that money spent by the government will be better for the economy than money spent by the private sector. This chart is one of many examples of what happens when we take money out of the economy and allow it to trickle-down our government bureaucracy. Stagnation. And don’t worry, Stagflation will be here soon.
~ Chuck
