"To achieve a real recovery, government policy should focus on
individual incentives to work, produce and invest. Central here are tax
rates and regulations, including especially clarity about future
policies. In a successful policy package, the government would get its
fiscal house in order and make meaningful long-term reforms to
entitlement programs and the tax structure.
The Obama administration seems to think that individual incentives
and serious fiscal reforms are of no great importance and policy should
emphasize Keynesian-style demand stimulus (public works, prolonged
benefits) along with bits of industrial policy (loans and grants to
"green" energy companies). This approach has failed for three years."