Week in Review

Cato Scholars Comment on Obama Inauguration Speech

When Barack Obama stepped to the microphone as President of the United States on Tuesday, he addressed a number of key policy issues, including government spending, terrorism and responsible leadership. After two years of examining candidate Obama’s rhetoric and policy proposals, Cato scholars weigh in on Obama’s first words as president:

John Samples, director of Cato’s Center for Representative Government, offers his take on what he considers the major theme of Obama’s speech: Responsibility. Samples writes:

Obama’s modest demeanor suggests an understanding of his own limitations. If that is true, he may turn out to be more a politician and less a priest, a president content to live within the laws and achieve marginal changes in public policy.

But I wonder. Living in Washington, DC, I have recently had reason to recall Samuel Johnson’s remark about Shakespeare: “In his plays, there are no heroes, only men.” Obama seems to be telling a different story, a tale about charismatic heroes and utopian aspirations. When the talking stops and the doing begins, one question will be answered: Do Americans really want to live out a play where there are no men, only heroes?

In his inaugural address, Obama promised to eliminate government programs that don’t work. Daniel T. Griswold, director of Cato’s Center for Trade Policy Studies, says cutting farm subsidies is a great place to start:

If Senator and candidate Obama could not see the need to end our failed farm policies, it is hard to imagine many if any other programs that will come to an end under his administration.

Director of Information Policy Studies Jim Harper breaks down Obama’s rhetoric on foreign policy and terrorism:

I regret that he raised terrorism again because of the benefit it gives terrorists (knowing that they are in his head). But if it is going to be raised, I can’t think of a better way to do so — no reference to any specific group, just a declaration to anyone considering terrorism: You will lose.

Looking Back at the Bush Legacy

If Barack Obama has anything for which to thank George W. Bush, it’s the massive amount of executive power the Bush administration left for the new president. Citing a recent Washington Post article, Cato executive vice president David Boaz laments Bush’s gift to America’s 44th president.

To see exactly how much Bush has expanded the hand of government into the market, Cato senior fellow Michael D. Tanner lists 14 ways the former president made the market less free. For more on how the conservatives increased the size of government, don’t miss Tanner’s book, Leviathan on the Right: How Big Government Conservatism Brought Down the Republican Revolution.

To add insult to injury, the Washington Post reports that Bush’s post-presidential plans will include starting a “Freedom Institute focused on a broad portfolio of topics, including the expansion of democracy abroad and education reforms of the kind Bush implemented during his presidency, according to organizers.”

George W. Bush is starting a Freedom Institute? In the words of David Boaz, “Coming next: The Clinton Center for Honesty and the Paris Hilton Center for Modesty.”

Obama Continues to Push For Stimulus

President Obama continues to pitch his stimulus plan to the American public. Four days before his inauguration, Obama said, “The way I see it, the first job of my administration is to put people back to work and get our economy working again.” As determined as his administration may be, Cato analysts continue to explain why Keynesian plans like the one Obama is proposing will end up hurting the economy more than helping it.

In November, Cato adjunct scholar Lawrence H. White explained how Americans got themselves into the financial crisis, and he urges that government spending is not a solution to get out of it. “You can’t solve an excessive spending problem by spending more. We are making the crisis worse,” he writes in a new article co-authored with David C. Rose. “We have been down this road before. Most recessions start with the bursting of bubbles that grew large because of excessive money growth. But again and again, we presume a Keynesian cause and a Keynesian cure. Our recent stock market and housing market crashes can prove to be the start of a sound and rapid recovery — if we will have the courage to let it be so.”

While Obama proposes an $850 billion stimulus bill, the federal deficit hovers around an astonishing $2 trillion. Can we afford such a massive spending program of taxpayer money? Obama may answer, “Yes we can,” but David Boaz says, “No we can’t.”

Cato analysts aren’t just writing about why stimulus proposals don’t make sound economic policy; they’re also hitting up the airwaves. Watch Cato senior fellow Daniel J. Mitchell discuss TARP, politicians’ love for spending, and Obama’s economic plan on CNBC.

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