Only five years into his tenure, President Obama has finally decided to do something about the economy.
Not the economy of the whole country, but the economy of a few small areas that voted almost unanimously for him.
As interesting as that fact is, what is more interesting is how he intends to accomplish the task.
To promote economic growth in these "Promise Zones", Obama proposes lower taxes, reduced red tape (regulation), and of course, government grants for companies who locate there.
What makes this interesting to me is that for years, Obama has insisted that lower corporate taxes and reduced regulation, would not improve the economy, but now he is employing just those tactics in his quest to improve the economic standing of some low income people. That sounds a lot like "trickle down" economics, but it can't be, because that doesn't work. Or at least that's what he's been saying for years.
The real truth is that Obama knows that lower taxes and less regulation is good for the economy and he always has. He also knows that it works best when the free market is allowed to work, but that doesn't fit with his government control ideology, so he is going to try to get the advantages of free market economics under strict government control.
That's like trying to get the health advantages of fresh vegetables and deep frying them in lard.
If even Obama now concedes that lower taxes and less regulation is good for the economy, then why not apply them to the whole country rather than small areas in a few cities and why not allow them to work in a free market environment, since they are free market principles?
Submitted by Virtual Newsroom