Morici: Eurosclerosis Comes to America
NEW YORK (TheStreet) -- Abroad and at home, President Obama with unprincipled pragmatism is undermining America's most cherished values, economy and liberties.
When the Egyptian military ousted a duly elected government, Obama didn't cut off aid as required by U.S. law. Instead, he validated a libertine mob, generals and bureaucrats who felt their interests threatened by the majority of voters who preferred a more conservative regime founded on traditional Arab values.
Limiting U.S. objectives in the region is justified as part of the U.S. pivot toward Asia, which the Commander in Chief fashions as countering Chinese influence. However, whether the issue is currency manipulation, refusal to behave responsibly on environmental issues or human rights, the president protests verbally but appeases Beijing in his actions with a terrible loss of jobs at home and a loss of face with Asian allies.
The commitment of additional naval resources to the Pacific is small and inadequate. That leaves Japanese Prime Minister Shinzo Abe to weigh bending Japan's post-war constitution and rearming, lest he risk American abandonment when it counts in its territorial disputes with China and access to Middle East oil.It's really all about a diminished America retreating because the president has cut military spending to expand the welfare state and now can't afford the fleet the country needs to sustain its historic commitments. Europeans from France and Spain to Greece have demonstrated governments obsessed with sheltering their citizens from all risk and redistributing income can't grow. Now, Eurosclerosis has come to America. The Congressional budget office projects that if federal spending on health care, social security and other pensions continue on the course charted by the president, Americans at all levels will pay more taxes over the next two decades than those prior to the financial crisis, deficits will spin out of control and economic growth well below 3% will be the norm through the mid-century. The country simply won't be able to sustain its military at anything like its present level as entitlement spending squeezes out resources for defense, science and technology, and just about everything else.
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