On Wednesday, Harvard’s campus newspaper The Harvard Crimson ran an opinion piece by the President addressing the economy and student loan debt. Unfortunately, the op-ed was riddled with flawed logic, inaccurate statements, and deficient ideology that the American people shouldn’t endure.
First of all, it is worth noting that state-centric approach the President has taken to solve the woes of our time. Speaking to his jobs proposals that did not fair well on the hill, the President said “the best way to attack our economic challenges and put hundreds of thousands of people back to work is through bold action in Congress.” The idea, and the hubris needed to accept it, that the federal government wields sufficient power over the fourteen and a half trillion dollar U.S. economy and can, at will, micromanage it back to health is a bit disconcerting. Such ideas stem from overconfidence in government action and a flawed understanding of a market economy.
Hubris aside, the President bolsters the case for his jobs bill by repeating a faslehood tackled by the watchdog group FactCheck.org. He says:
[…] it’s been so disappointing to see Republicans in Congress block jobs bills from going forward—bills that independent economists say could create millions of jobs though the kinds of proposals supported by Democrats and Republicans in the past.
According to FactCheck.org, “the median estimate in a survey of 34 economists showed 288,000 jobs could be saved or created over two years under the president’s plan.”
Secondly in his piece, the President addressed student loan debt with this:
Living with that much debt forces you to make some tough choices. And when a big chunk of every paycheck goes towards student loans, it isn’t just painful for you—it’s painful to our economy and harmful to our recovery.
Here, the President is insinuating that the economy is suffering from a lack of spending in the private sector as graduated college students make down payments on the loans with money they would have otherwise spent. Unfortunately for Mr. Obama (and for his Keynesian cohorts), that is not the case. According to economic data, personal consumption is at much higher levels today than prior to the recession. And furthermore, consumption is not the engine of an economy, it is production that makes wealth. We should be removing all barriers for the producers of this economy to continue and expand production. With one of the highest corporate income taxes in the world, mounting regulation, and massive deficit spending, accompanied with a growing movement in the downtown regions of many U.S. cities which demand further sacrifice from producers, it is no wonder why the economy is stagnant.
Progressives, such as President Obama believe in a perverted understanding of liberty. According to them, liberty was not just the freedom from oppression by others, it was the freedom to achieve the most in one’s life — that all peoples were entitled to explore themselves and grow to be the best they can be. From this shore, progressives justified extraordinary breaches of individual liberty including the establishment of the welfare state, extensive regulation of commerce, and atrocious distributions of wealth.
The President seeks to accomplish the same thing as he echos the cries of the Occupy Wall Street hippies for the wealthy to “pay their fair share” in taxes in order to help the country eliminate its deficit problems; as he designs to spend more money we do not have on stimulus projects that do not work.
The President should not get carte blanche to propagate half-truths and expired economic theories. The President can do us all a favor by doing two things: instruct the federal government to move out of the way of the producers of this country and let the marketplace restore itself, and reconcile his progressivism with Jeffersonian liberty in favor of the later.