What is the Biggest Drag on the Economy?

In today’s Wall Street Journal columnist David Wessel has an article entitled “Biggest Drag on Economy?  Washington”.   He quotes Senator Dick Durbin (Democrat, Illinois) as saying “We have the Fed hitting the accelerator as hard as it can, and we have Congress doing the opposite.”  He is referring to across the board spending cuts (the Sequester) and raising of the top tax rates.

What we should be doing, according to Senator Durbin, Mr. Wessel and the experts he cites, is reforming entitlements, especially for health care, rather than trimming core functions of government across the board.  Likewise we should be implementing pro-growth tax reform , by lowering tax rates and shrinking deductions, rather than raising tax rates.

Who is holding up the big budget deal which Senator Durbin says he wants?  He needs to look in the mirror!  It is the Democrats who are dragging their feet on entitlement reform as well as replacing tax deductions with lower tax rates.  The Democrats control two thirds of the executive and legislative branches of government.  If they continue to stall on implementing the economic and fiscal policies which we so badly need to get our country moving again, they will eventually pay a severe price at the polls.

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