Could Democratic policies bring about a second recession? U.S. Chamber of Commerce President Tom Donohue thinks so:

“Congress, the administration and states must recognize that our weak economy simply could not sustain all the new taxes, regulations and mandates now under consideration. It’s a sure-fire recipe for a double-dip recession, or worse.”

Nowadays, every Democratic “solution” includes a new tax, regulation, or mandate. Think carbon is bad for the environment? Mandate carbon efficiency standards. Want health care reform? Tax the top 1% of the country. Blame Wall Street for the financial crisis? Support Sen. Dodd’s financial regulation bill. The common thread between all of these Democratic proposals is that they increase the cost of doing business in America. What happens when it becomes harder to do business? People stop doing business, recession ensues.

Donohue had few positive things to say about the Obama administration and the Democratic controlled Congress. The Hill reports:

“On healthcare, Donohue said the legislation under consideration by Congress would do nothing to rein in costs and was a prescription for “fiscal insolvency and an eventual government takeover of American healthcare.”

He said the House climate bill would raise energy costs and kill jobs.

Donohue also blasted the administration’s policies on trade, hitting it for not sending to Congress pending deals negotiated by the Bush administration with South Korea, Colombia and Panama.”

Liberal writer David Ignatius puts it another way, naming the current trend, “the Californization of America.” The process of drowning in debt incurred from unsustainable government programs and the destruction of a once vibrant business atmosphere. 

Quite simply, the American economy is too weak to sustain drastic Democratic proposals. Will Democrats heed warnings from leaders like Donohue and American for Tax Reform’s Grover Norquist, or will they continue their march towards insolvency?

Posted by Chris Prandoni on Wednesday, January 13, 2010 4:13 PM EST

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