June 25, 2010 -
World leaders are gathering in Toronto this weekend for another G20 confab. But it might not be the usual kumbaya; disunity over government spending is in the air.
President Obama is headed north reportedly to "promote government spending and stimulus-style policies to his global counterparts." Obama sent a note pitching stimulus to summit participants last week.
The Euros aren't buying, being unimpressed by Washington spending: that we borrow nearly 50 cents for every dollar spent; or that federal spending as high as Toronto’s signature CN Tower hasn't dented unemployment.
Shaken by Greece’s implosion, austerity talk is now in vogue in Germany, France and Spain, at least for now. Britain, under new management, just released an "emergency budget."
Maybe the G-20ers have read a new report by the Business Roundtable. Requested by the Obama Administration, it attacks government regulations and policies that have killed growth. In a fantastic truth to power moment, this group's head remarked, "By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses." I couldn't say it better.
Our debt is $13 trillion and climbing. When statist Europeans are hearing alarms and acting and still the White House is deaf – you know we’ve got a problem. Mr. President, leave them alone.