Democrat Blames Faltering Economy On “Shrinking” Government

Eleanor Holmes Norton is a Democrat Delegate representing the District of Columbia. Since she represents D.C., she cannot vote on legislation, but she can speak on the House floor and serve on committees.

Recently, during the House Democratic Steering and Policy hearing on the impact of sequestration, Delegate Norton posited that the reason our economy isn’t doing so well is that the government as a whole is shrinking:

“What is shrinking is not the private sector – it’s hard for them to grow because the public sector, both the state sector and the federal government is shrinking and they are having to grow it all by themselves and that is why we don’t have much growth.”

 It’s good that she doesn’t have any voting rights, but her faith in government is hardly unique. Talk to most politicians today, and they’ll tell you that a legitimate role of government is to grow the economy.

Since the government can’t actually produce anything of value, all it can do is create the illusion of economic growth by injecting debt into certain sectors of the economy. This creates a bubble, giving the impression that that particular sector of the economy is robust. And the bubble keeps growing until market realities pressure the bubble into bursting, rendering all the assets that the government purchased with debt completely worthless.

It’s gotten to the point where this “quantitative easing” just doesn’t do the trick anymore. People are seeing right through all the smoke and mirrors of our debt-based financial system. The government was never able to grow our economy. Any “growth” brought about by the government was always an illusion, and the chickens are now coming home to roost.

Aside from the fact that governments cannot create economic growth, the idea that governments are shrinking is asinine. I’m assuming she’s referring to sequestration, which won’t do anything except slow the growth of government, or at least give that impression. They’re trying to outrage Americans by furloughing key government positions, especially in the Department of Defense. They want to elicit this kind of response:  “Enough with the budget cuts! They’re not working! We need more government!”

But in spite of these token “cuts,” the government is still growing. They’re still hiring and expanding government programs. Last year, the government spent $400 billion more than in 2008 (in constant 2012 dollars).  They might have canceled the White House tours, but they’ll still invite Beyoncé and Adele to Michelle Obama’s 50th birthday party, the costs of which will likely be footed by the taxpayers. Homeland Security may have let thousands of criminal illegal aliens go free, but they still paid $50 million for new uniforms for the TSA and purchased 2,700 light-armored tanks.

The bottom line is, our government is incapable of shrinking. All it knows how to do is grow. The economy has been faltering for the past several years because the government won’t stop growing at the overwhelming expense of the taxpayers and small businesses. As the government grows, the private sector shrinks. If the private sector is ever to thrive again, the government has to shrink like a dying tumor. But a Democrat delegate from D.C. would never dare admit that.