The success of the US is largely due to a less confiscatory and redistributive regime - we only take and spend 28% of GDP (Well, at least we only tax this amount. Today, we spend more).
Less federal government diktat driven consumption of resources creates more room for others to allocate resources.
With more GDP being allocated by business owners and managers striving every day to make the most efficient and effective use of every resource, we create more wealth.
This space enables more freedom to pursue individual goals, ie liberty to purse undisturbed wealth creation. Wealth creation is good. It is what enables spending on desired social goals.
Tuesday, we elected Governors. Governors control or heavily influence redistricting the states. Redistricting leads to Congressional seat wins and losses. 23 States elect 80% of the seats in the house. Republicans now have Governors in 14 of those, which, along with the newly neutralized California (53 seats by itself) redistricting process represent 70% of those seats. The only four states of 13 with a congressional delegation of more than 10 seats with Democratic Governors are NY, IL, NC, and WA. The GOP controls the state house in NC.
Accurate Reality: Be optimistic that the election of Republican and Conservative Democratic governors, along with recent moves in Iowa and California to move the redistricting of congressional seats to independent, citizen or judge run committees, will result in an enduring structure that elects representatives oriented toward lower federal spending and intrusion - finally. Be optimistic that this will last at least 12 years. Be optimistic that this will have an out of proportion influence on US prosperity and economic growth for the next decade.
Be optimistic is exactly right. The past two years have been a reality check for most Americans. While we wanted President Obama to succeed we were amazed at the changes he brought us.
ReplyDeleteThe mid-term election process is essential to our republic because it gives the people an opportunity to pull our politicians out of the ditch and point them or their replacements in a new direction.
So, Dan, let's hope this new crop can be less confiscatory, will spend less, and remove some of the onerous regulatory uncertainty that is causing business to hoard cash instead of spending it.