Has 'Obamanomics' failed?
President Obama's call for more government spending, says Allan H. Meltzer in The Wall Street Journal, only proves he knows his stimulus program isn't working

The Obama administration's economic stimulus program "has failed," says Allan H. Meltzer in The Wall Street Journal. President Obama, claiming he's tackling a problem he inherited, has had 18 months to turn the economy around, yet growth remains slow and "unemployment remains high." While European leaders talked about shoring up their budgets at last weekend's G-20 meeting, the U.S. remains the "odd-man out," continuing to call for more government largesse. Obama and his Democratic allies won't admit it, but their demand for more stimulus spending only proves "that they too recognize that the earlier measures failed." Here, an excerpt:
"The contrast with President Reagan's anti-recession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of non-defense spending. Recovery began about a year later. After 18 months, the economy grew more than 9 percent and it continued to expand above trend rates.
Two overarching reasons explain the failure of Obamanomics. First, administration economists and their outside supporters neglected the longer-term costs and consequences of their actions. Second, the administration and Congress have, through their deeds and words, heightened uncertainty about the economic future. High uncertainty is the enemy of investment and growth."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Read the full article at The Wall Street Journal.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Today's political cartoons - March 29, 2025
Cartoons Saturday's cartoons - my way or Norway, running orders, and more
By The Week US Published
-
5 tactically sound cartoons about the leaked Signal chat
Cartoons Artists take on the clown signal, baby steps, and more
By The Week US Published
-
Roast lamb shoulder with ginger and fresh turmeric recipe
The Week Recommends Succulent and tender and falls off the bone with ease
By The Week UK Published