By John Tamny RealClearMarkets
A recent newspaper headline asked a question that’s presently on the minds of many Americans: "How long will the economic plunge go on?" Depending on the person answering the question, one might among other things hear "when taxes are reduced" or "when housing recovers." Both answers are surely appealing, but then it’s also true that the U.S. economy has boomed with tax rates much higher than those at present, not to mention that even in its weakened state, prices today point to a housing market better than the one Americans experienced when this decade began.
Perhaps a better question to ask might be what the federal government is doing right now to make the economy worse, or what the government could stop doing so that the economy starts growing again. In this case, the answers to our present economic difficulties are many.
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