While the popular debate on whether raising or cutting taxes is best for the economy or whether reducing or maintaining federal spending is better, real events are emerging in America and the rest of the world that will shape our economic future.
These other events create the true markets for goods and services and are often unforeseen and unpredictable (e.g. the boom in horizontal drilling). They are nevertheless viewed by millions of businesses, and these businesses ultimately determine the effect of the events on their decisions on investment, job creation and expansion. Based on this proposition, it becomes critical that the general climate for business be conducive to making such investments.
Under the Obama administration, there are stringent regulations and uncertainties about future taxation policies and legislative burdens, such as Obamacare, that dampen the responses of businesses to new opportunities. Because most are fixated on fiscal policy, important opportunities to create the right kind of climate for investment and job creation are being missed.
It should now be obvious from a general perspective that President Obama's administration does not grasp the fundamental principles that lead to true prosperity. There will be disagreement from many on the left who adhere to egalitarian values, but we must now install in government experts who understand the basic drivers that lead to capital formation, job creation and economic expansion.
North Las Vegas, Nev.
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By Rand Paul
Obama acts as though we no longer have a Constitution