Our friend Dan Mitchell of the Cato Institute returns after the passage of Porkulus to tell us what to expect next. How do we get faster growth in an age of Keynsianism? How do we ensure prosperity when a government starts displacing capital? Dan explains what policies we need to press on the Obama administration:
Basically, it comes down to ending Keynesianism, and Dan rightly points out that Obama didn’t start the process; that started in the Bush administration. I’d say the key here is sound money, but that would take some Reagan-like courage to suffer through a severe recession in order to tighten the money supply and roll back debt. Mitchell says that politicians rarely choose that path, preferring intervention, and it doesn’t appear that we have any Reagans in our midst at the moment.