June 21, 2012, Fairfax, VA—Americans for Limited Government President Bill Wilson today issued the following statement on the sorry state of the U.S. economy:
“Obama’s recession is undeniable. With U.S. manufacturing contracting for the second straight month, Chinese manufacturing also declining, home sales down, home prices still in the toilet, unemployment still way too high, job growth slipping, retail and factory orders down, and Europe melting into a puddle of bad debt, the signs are unmistakable. The U.S. economy, indeed the global economy, is severely slowing down.
“Despite $3.4 trillion of fiscal and monetary stimulus since Obama took office, we are in our sorry state. No matter how much the Fed twists and turns, no matter how many trillion dollar deficits Congress runs, the classic Keynesian and monetarist prescriptions have failed to restore the robust, sustainable economic growth that is needed to get America back to work. Obama and Bernanke are powerless to stop this contraction, and have been relegated to no more than passive observers of our decline.
“The trouble we face in the Obama economy is that the debt overhang, both public and private, is diverting resources away from expanding the private sector. We cannot even honestly service our existing debt without a printing press. Because Obama never correctly identified debt as the problem, and instead resorted to gross expansion of debt and quantitative easing to cure the economy, he has only made things much, much worse.
“A slowdown caused by too much debt is now imminent. It is upon us. The only question is if the nation will find a way to pare down and retire those public and private debts with honest repayment, instead of the de facto default of inflation. Already, papering over the debt is not working, and is only further diluting regular Americans’ ability to repay their own debts by causing prices to rise and expendable income to shrink. Make no mistake, true repayment will be a painful process, but the sooner it begins the better.
“But that is only part of the solution. Restoring sound money and balancing the budget is the key, but to lessen the pain involved, it must also be accompanied by supply-side tax policies, a dismantling of the worst regulatory environment in the world, and freeing up and incentivizing private capital formation here in the U.S. Only then can the long path to recovery and national healing begin. It is time for new leadership on the economy. Obama has failed miserably.”
Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.
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