Some slick politicians in Washington would like to have you believe that in the wake of the third quarter’s economic growth numbers released early this month, the recession is over and a strong economy is right around the corner. If we continue on the current course, however, this will not be the case.

Economic growth numbers have been propped up by a first-time home buyer tax credit, the “cash for clunkers” program and loose credit, all of which have expired or soon will. Couple those factors with a government-run health care scheme, as well as a possible cap-and-trade regime that is set to raise taxes on business and usher in a sharp decline heralded by the current 10.2% unemployment numbers.

But this does not need to be the case. There are market-based solutions that can save the economy and return us to prosperity.

First, Washington must stop meddling in private companies, passing trillion-dollar “stimulus” packages, bailing out ailing industries, such as the automakers, and passing new burdensome financial regulation. These programs have prevented recovery and stunted economic growth.

Cap-and-trade would be an economic growth killer. Instead of reducing global emissions, it would increase emissions by inducing industry to move to China and other Asian countries, where there are fewer environmental and workplace safety regulations.

Most Americans agree that health care reform is also an important part of economic recovery, but disagree about the role government should play in it. Instead of introducing a so-called “public option”/government-run plan, politicians should be considering solutions that focus on lowering costs – not creating new government agencies. These reforms include tort reform and allowing the sale of health insurance across state lines. Through reforms like this, costs would decline for both the consumer and the government, and subsequently health care would become more accessible and affordable.

While recovery in the near future is a distinct possibility, it will not be through government corrections. As long as Washington continues to tax and spend, create new big government programs and attempt to enact burdensome environmental regulation, American industry will remain repressed in its recovery efforts.

Write to tkorson@afphq.org with your comments.