The Super Committee, formed after last year’s debt ceiling debate, was tasked to find an additional $1.2 Trillion in cuts, but was unable or unwilling to find a compromise to cut America’s debt. The US debt has reached $15 Trillion and counting. The Democrats quickly found blame with the GOP for refusing to raise taxes. The United States has the highest corporate tax rate in the G8 making it one of the unfriendliest places to do business. This has been supported by a report published by the Fraser Institute, which rates jurisdictions in North America, judging government size, taxation and labour market freedom. The report found that Alberta is the most economically free jurisdiction in North America, surpassing all 50 states and the remaining nine Canadian provinces.
The report blames the drop in rankings of U.S. States on a continued spendthrift approach of the Obama Administration. While the US spend billions on stimulus, Canada’s approach to stimulus spending has been less dramatic. Regulatory growth in the U.S. has also stifled business. Two formal wars fought by the U.S. have also ballooned spending.
The top three jurisdiction in North America are 1. Alberta, 2. Texas and 3. Delaware according to the report.
Alberta is the most economically free jurisdiction in North America, beating out its provincial counterparts and all 50 U.S. states as Canada narrows the gap with its southern neighbour on economic freedom, according to a report released Tuesday.The Fraser Institute’s Economic Freedom of North America 2011 report found Canadian provinces, on average, moved up in the ranks as compared to U.S. states when judged on the size of government, taxation, and labour-market freedom.“The chicken is coming home to roost: Canada is staying on the course of economic freedom, while the United States has accelerated its spending and regulation,” said Fred McMahon, a Fraser Institute vice-president and co-author of the report. “It’s been a long-term trend that’s really beginning to bite now.”
The failure of the Super Committee was due to a difference in ideology. Democrat legislators have resisted cutting entitlement programs, while Republicans have bucked the desire of Democrats to raise taxes, believing that more taxes will just spur more spending.
After the Super Committee failed, it didn’t take long for Democrats to play the blame game. The President, who was basically absent from the deficit reduction debate since August, made a campaign type statement, blaming Republican legislators for not budging. The fact that Democrats are unable or unwilling to make some bold decisions on program spending, never entered the President’s vocabulary.
While the President continues to push his Jobs Act, under the motto “We can’t wait”, the debt keeps mounting. Washington Lawmakers are out of touch with the American people and unwilling to cut the fat in government, revise the tax code and cut entitlement spending.
Washington needs to take a look at what is happening in Europe. Greece and Italy are hanging on by the seat of their pants, while Spain and Portugal are getting close to disaster. France is in the news today as another candidate moving toward a crisis. The difference between the United States and Europe is the Federal Reserve, which is capable of printing its own money. Regardless it won’t improve the US economy.
Instead of blaming the other side, the President needs to lead and hold out a hand to the Republicans, quit the partisan campaign like attacks and work out a solution. Obama’s blame game needs to stop. He owns the economy and it is he who will be judged on it.