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Our Economy Slows Down As Government Refuses to Slow Down

Recorded on April 29, 2012

From The Heritage Foundation, I'm Ernest Istook.

With millions of Americans out of work, we don't need another economic slowdown. Last quarter our growth rate was only 2.2% a year—down from 3% at the end of 2011. It was also slower than growth in 2010.

Liberals say it's because government spending is down—but government spending is up, just not growing as fast as liberals planned.

So why are we having a slowdown?

There's a clue in a World Bank report. Just three years ago the USA was #6 in the world as a place to start a new business. But now we've slipped to #13. It's easier to start a business in Rwanda, Saudi Arabia, or even Armenia, than it is in the USA.

When new businesses are strangled by red tape, they can't create as many jobs.

We need to get rid of the runaway red tape—plus halt the enormous job-killing tax increases scheduled to hit in January.

From The Heritage Foundation, I'm Ernest Istook.