Conservative politicians: When you speak about President Obama’s fiscal policy being like Europe’s, you are often unknowingly promoting Europe’s big government policies. This is because Americans don’t understand Europe’s economic faults. Please describe them each time you compare Obama’s policies to Europe.
Here are some ideas for your expanation of Europe’s economic system:
Obama’s policies are moving America toward big, intrusive government which cripples economic growth as in the European model.
Because we know that all over the world, the more a country’s government grows, the less the country’s economy grows. We are seeing this now in Greece.
What does a European, smaller economy mean to You?
It means less small businesses will open, meaning less job opportunities, and less opportunities to increase the quality of life for you and for your children.
European, big government means fewer larger companies will be able to expand, so there will be fewer opportunities for you and for your children to advance in your careers.
Because fewer businesses will be growing, there will be smaller raises and smaller number of promotions. So you and your children are likely to experience a decrease in your quality of life. This is why the average wages in Germany, Europe’s power house, are lower than the average wages of Americans in 45 of our states.
Unfortunately, many of you are already experiencing these struggles yourselves. We know that as the left increases the size of the government here, growth in our economy will decrease, and more and more Americans will experience these struggles. This is why the Obama administration recently said that high unemployment will be the new norm. High unemployment comes with big government. Do you want this to be the norm here as it is in many places in Europe?
As many of you are struggling to find a job, you are experiencing a more stagnant, non-existent growth, European like economy . Is this the direction you want to take your country?
Let’s stand together and say NO to the democrat’s big, intrusive government European policies. Let’s stand together in favor of a small American government, in favor of economic freedom from leftist, big government. Because only with a small American government will there be growth in our economy. Only with a small American government, will You and for Your chidren have the opportunity to have a more prosperous future.
GOP leadership: Please adopt some new language surrounding the usage of the ‘European model.’ Explain how this will affect your listener’s lives, and the lives of your listener’s children each time you mention it rather than unknowingly selling the European system for the left.
Data proving increase in size of country’s government and debt=decrease in size of country’s economy:
An article in the Journal of Monetary Economics found: “[T]here is substantial crowding out of private spending by government spending.…[P]ermanent changes in government spending lead to a negative wealth effect.”
A study from the Federal Reserve Bank of Dallas also noted: “[G]rowth in government stunts general economic growth. Increases in government spending or taxes lead to persistent decreases in the rate of job growth.”
A study in Public Finance Review reported: “[H]igher total government expenditure, no matter how financed, is associated with a lower growth rate of real per capita gross state product.”
A study in the European Economic Review reported: “The estimated effects of GEXP [government expenditure variable] are also somewhat larger, implying that an increase in the expenditure ratio by 10 percent of GDP is associated with an annual growth rate that is 0.7-0.8 percentage points lower.”
If you’re interested in a more extensive list of data and further expanation, this is a good article: