As hard as it might be for Republicans to walk away from a large tax cut, they shouldn’t be fooled by Obama’s big-spending approach. The president-elect wants to spend hundreds of billions of dollars on unemployment insurance, Medicaid eligibility, infrastructure projects, and even bailouts for states such as California, New York and New Jersey.
Government spending will not spur long-term economic growth or reduce the economic pain felt by Americans. History offers us a good guide. Take a look at the chart below to see the effect of President Franklin Delano Roosevelt’s spending spree during the Great Depression. Unemployment remained above 20% despite the New Deal programs that liberals so fondly embrace today.
It took World War II to pull America out of the Great Depression, not the New Deal.