President's Budget Unveils a Vision for the Future

During the president's State of the Union address, he outlined two contradictory visions. On the one hand, he called for an economy in which “everyone plays by the same set of rules.” On the other hand, he lauded the targeted bailouts of a hand full of auto firms, and called for special tax treatment of manufacturers and certain energy firms.

An uneven playing field isn't just unfair, it is extraordinarily costly. It means that instead of spending their time, money, and resources developing new ways to create value for customers, firms spend time, money, and resources developing new ways to please politicians.

 It is in the budget that we learn which vision the president actually endorses.