Page 15 - Cedarville Magazine Spring 2013 Volume 1 Issue 1
Basic HTML Version
Cedarville Magazine
|
15
Whose
ECONOMIC
V I S I O N
is
REPRESENTED?
Featurettes
by Bert Wheeler
When it comes to opinions on our nation’s
economy, there are two opposing visions.
One casts the United States as a nation based
on free enterprise with minimal government
involvement in business affairs. The other casts
the United States as a nation where business and
citizens are more and more dependent on the
government’s involvement in their economic
affairs. As citizens, we need to be aware of
our personal economic vision, understand the
economic vision of our current leaders, and
determine if the leaders’ vision aligns with ours.
In the first State of the Union address for
his second term, President Obama said, “It
is our unfinished task to make sure that this
government works on behalf of the many,
and not just the few; that it encourages free
enterprise, rewards individual initiative, and
opens the doors of opportunity to every child
across this great nation.” While this statement
suggests that Obama supports a vision of free
enterprise, let’s examine some of his statements
about economic policy in the rest of the speech
to see if his proposals match this vision.
The President referred to “deficit reduction”
on more than one occasion. We must not only
reduce the deficit, but also institute policy that
reduces the ratio of the amount of debt to the
size of the economy. For this to happen, we
must allow the economy to grow at a much
quicker pace. We need pro-business policy at
the federal level to encourage entrepreneurship.
Obama wants to encourage business with the
“American Jobs Act” — a combination of tax
credits and additional spending — essentially
more “stimulus” consistent with a vision of
government involvement in our economy.
He advocated “the launch of three more
... manufacturing hubs, where businesses will
partner with the Departments of Defense
and Energy to turn regions left behind by
globalization into global centers of high-tech
jobs. And I ask this Congress to help create a
network of 15 of these hubs and guarantee that
the next revolution in manufacturing is ‘Made
in America.’” The President is proposing that
the government influence the type of business
that American entrepreneurs start. The federal
government has no particular expertise at
choosing successful business ventures, and
establishing manufacturing hubs is consistent
with a government-directed economy.
Obama aspires to “use some of our oil and
gas revenues to fund an Energy Security Trust
that will drive new research and technology to
shift our cars and trucks off oil for good.” We
will move away from oil as a fuel only when
there are cheaper alternatives. Forcing people
and industries to change in order to eliminate
gasoline as a fuel will take money from other
parts of the economy, starving other business
where resources should be invested. This bit
of social engineering is consistent with an
interventionist economic vision.
Obama’s words and actions show that
his economic vision is heavily dependent on
government. Our nation was founded on
the alternative economic vision of freedom,
accountability, and responsibility for ourselves
and others. To effectively participate in our
representative democracy, we need to think
through our personal economic vision and
speak up to ensure our vision is represented.
Dr. BertWheeler
is a Professor of Economics and
the Berry Chair for Free Enterprise at Cedarville.
He was a member of the planning committee
for the American Dream Conference. You may
contact him at
“Viewpoints” is an editorial article and does not necessarily
reflect the views and opinions of Cedarville University.
Charitable
Gift Annuity
Four Benefits of a
Increase Your Income
Receive a Charitable Deduction
Receive Partially Tax-Free Income
Minimize Capital Gains
cedarville.edu/giftlegacy
1-800-766-1115
Contact us at 1-800-766-1115 or
at
to request a free illustration that
includes your gift annuity rate and
potential payment.
Single-Life Rates*
Age Rate
60 4.4 %
70 5.1 %
80 6.8 %
90 9.0 %
*These rates are variable. Please contact Gift
Planning to confirm your single- or two-life rates.
V i e w p o i n t s
