Asks Douglas Holtz-Eakin.
Let’s turn the clock back to the 2008 campaign and ask the question: If Barack Obama had run for office promising to deliver one-third of the Big Three automakers to the unions and drop another one-third on the backs of taxpayers, would people have approved? Yet, remarkably, that is what is in the offing as a result of the Administration’s policies.
This is madness.
The Administration’s approach puts it squarely in the position of picking winners and losers in restructuring. It permits the White House to dictate on political criteria in a way that market-based solutions would not. It is entirely consistent with using tax policy to drive income redistribution, energy policy to reward favored supplies and technologies, and infrastructure policy to support the states and localities of choice. Political connections will replace entrepreneurial spirit and risk-taking as the key ingredient for economic advancement.