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Federal Reserve Should Do Less, Not More: Morici
CNBC.com | February 04, 2013 | 11:48 AM EST

It's time for the Federal Reserve to do less to prop up the recovery and jobs creation.

The economy suffers from too little demand—simply, the huge trade deficit with China and on oil sends too many consumer dollars abroad that don't return to buy U.S. exports, goods and services.

(Read More: Buy Banks, Despite Fed's 'Crippling' Low Rates: Bove )

During the Bush years, Americans artificially boosted demand by spending more than they earned, borrowing recklessly against their homes, on credit cards and for college educations that proved poor investments. Ultimately, failing loans sank financial markets.

Meanwhile, other problems festered—health care costs and university tuition rocketed, longer life expectancies undermined Social Security, and states borrowed too much.

When the President campaigned in 2008, he promised to get tough with China on trade and produce more oil. He has done little about the former, and in the wake of the Deepwater Horizon disaster, he punished an entire industry for British Petroleum's [ BP.-GB 478.15  +4.65 (+0.98%) ] sins by curbing drilling offshore and in Alaska.

He dramatically increased federal spending on entitlements, made student loans even more accessible, and eschewed the recommendations of the Simpson-Bowles Commission to raise the retirement age.

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