February 13, 2012

President's Budget Unveils a Vision for the Future

Matthew D. Mitchell

Affiliated Senior Scholar

Matt Mitchell discusses the president's vision for the future

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During the president's State of the Union address, he outlined two contradictory visions. On the one hand, he called for an economy in which “everyone plays by the same set of rules.” On the other hand, he lauded the targeted bailouts of a hand full of auto firms, and called for special tax treatment of manufacturers and certain energy firms.

An uneven playing field isn't just unfair, it is extraordinarily costly. It means that instead of spending their time, money, and resources developing new ways to create value for customers, firms spend time, money, and resources developing new ways to please politicians.

 It is in the budget that we learn which vision the president actually endorses.