There is one way that Democratic Senator Schumer is correct here. If you accept that we have the highest tax rates in the world and a huge regulatory burden and that those are reducing investments and thus wages. then "yes" there is something that government can do: get out of the way,
. . . As 2014 began, the parties were in stalemate. But, when government failed to deliver on a string of non-economic issues: the rollout of the Obamacare exchanges and the mishandling of the surge in border crossers, the ineptitude of the VA, the initial handling of the Ebola threat, people lost faith in government's ability to work, and then blamed the incumbent governing party, the Democrats, creating a Republican wave.
Ultimately, the public knows in its gut that a strong and active government is the only way to reverse the middle class decline and help revive the American Dream. Democrats lost in 2014 because the government made mistakes that eroded the electorate's confidence in its ability to improve the lives of the middle class. . . . .
There seems to be a lot more controversy over Schumer's crass comments about whether the Democrats should have done Obamacare rather than focusing on the economy
. What Schumer missed with these comments is that Obamacare actually made a lot of people worse off. It increased health insurance costs, but subsidies hid those increases from many.
Labels: Government, stimulus