October 9, 2012 2:50PM 

# New Video Shows that Obamanomics Is a Failure 

By [Daniel J. Mitchell](https://www.cato.org/people/daniel-mitchell) 

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I’ve narrated a video on [why Keynesian economics is bad theory](http://danieljmitchell.wordpress.com/2009/04/10/keynesian-economics-is-wrong/), I’ve also narrated a video [specifically debunking Obama’s failed stimulus](http://danieljmitchell.wordpress.com/2010/01/25/doubling-down-on-big-government/), and I’ve put together a post with [data from the Minneapolis Fed showing how Reaganomics worked far better than Obamanomics](http://danieljmitchell.wordpress.com/2012/02/02/one-year-later-another-look-at-obamanomics-vs-reaganomics/).

But this video from the Center for Freedom and Prosperity Foundation does all that—and more—in only about six minutes.

By the way, for those who like gory details, a previous video in the CF&amp;P Foundation’s Economics 101 series looked at how [the so-called stimulus was a rat’s nest of waste and corruption](http://danieljmitchell.wordpress.com/2012/08/13/new-video-is-a-strong-indictment-of-obamas-dismal-record-on-spending/).

Not that anybody should be surprised. [Big government facilitates corruption](http://danieljmitchell.wordpress.com/2009/04/21/the-link-between-big-government-and-corruption/) in the same way that a [dumpster attracts rats and cockroaches](http://danieljmitchell.wordpress.com/2009/11/25/predatory-government-and-rats-outside-a-dumpster/).

![Media Name: golden-rule.jpg](/sites/cato.org/files/styles/pubs_2x/public/download-remote-images/danieljmitchell.files.wordpress.com/100529553989/golden-rule.jpg?itok=5ILoFbCz) 

My concern is long-term trends. Politicians should be complying with [Mitchell’s Golden Rule](http://danieljmitchell.wordpress.com/2011/10/30/mitchells-golden-rule/), which means reducing government spending as a share of GDP (to put it in terms that make economists feel warm and fuzzy, gov’t exp/​GDP should be decreasing).

What irks me about Obama is that he wants to increase the [burden of government spending](http://danieljmitchell.wordpress.com/2012/03/04/a-fiscal-policy-tutorial-everything-you-need-to-know-about-the-economics-of-government-spending/), which means the numerator in the equation is going in the wrong direction. And he wants [class-warfare tax policy](http://danieljmitchell.wordpress.com/2009/06/15/obamas-tax-policy-threatens-americas-economy/) and [more red tape](http://danieljmitchell.wordpress.com/2012/07/26/obamas-right-in-a-perverse-way-about-government-playing-an-important-role-for-small-businesses/), which makes it even harder for the denominator to move in the right direction.

And if that ratio continues to deteriorate, as both the [BIS](http://danieljmitchell.wordpress.com/2011/05/22/mirror-mirror-on-the-wall-which-nation-has-the-most-debt-of-all-2/) and [OECD](http://danieljmitchell.wordpress.com/2012/08/20/is-america-in-worse-fiscal-shape-than-greece-france-and-italy/) are predicting, then it’s just a matter of time before the United States becomes Greece.

##### Related Tags 

[General](https://www.cato.org/general), [Government and Politics](https://www.cato.org/government-politics), [Tax and Budget Policy](https://www.cato.org/tax-budget-policy) 

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