"All government intervention in the economy is based on the belief that economic laws need not operate, that principles of cause and effect can be suspended, that everything in existence is 'flexible' and malleable,' except a bureaucrat's whim, whic is omnipotent; reality, logic, and economics must not be allowed to get in the way."(Rand, "Capitalism: The Unknown Ideal", 81)
Basically the pamphlet illustrates how the government caused the recession and that the government is preventing the economy from correcting itself; and as a result of this, the economy will be slow and sluggish for many years to come,
More of what caused the Great Recession of 2008[Jeff, which is exactly what the government is currently doing]– easy money, regulatory interventions to direct capital in unsustainable directions, politicians and policy-makers rigging financial markets – is not likely to produce anything but the same outcome; asset price inflation and an eventual “adjustment” we call a recession or depression.
Many of the same policies that caused the recession are being carried out on a greater scale. It is worth learning a little about the economy so that one can be aware of what the economic forecast will be in the future.
I got this picture and the quote that follows off of Boortz dot com.Are you really aware of just how much politicians - and I'm talking politicians from both parties - have trashed the future of your children and grandchildren? Are you sitting out there just blissfully thinking that since this country has been here all of your life, in generally the same shape it is right now, that it will always be here in something resembling its present form for your children and grandchildren? Have you ever heard that all good things come to end? Well then, what makes you so sure that this saying doesn't apply to this country? Do you think we're somehow bulletproof? Has it occurred to you that the citizens of the Soviet Union might well have thought the same thing?
Good to have you back Jeff!
ReplyDeleteI've read the beginning of it. It looks good. I'll post it on the required reading list.
I am always skeptical when people say blindly that we will just magically get out of this recession. "America will turn things around, always has always will."(Joe Blow factory worker). To me, the only way to get out of a recession is by doing something about it. If everyone in the civilian sector just keeps doing the same monotonous work, pulling levers and pushing buttons, while the government creates counter productive legislation, then it can only get worse. We need to change our leadership in order for our country to take one step in the positive direction.
ReplyDeleteRecessions are a necessary occurrence in a capitalist economic system. They are necessary to correct mistakes that the market has made. Most recessions last for only about six months and are not as severe as this one. I think it was Brazil, Germany too, that cut taxes and they came our of their recession in six months.
ReplyDeleteThe fact is that the government caused this recession and the policies that it is pursuing is causing the economy to not correct itself.
I don't think a change of leadership will undue all the damage or transformation that has already occurred to the economy. The economy will get better in the short term with umemployment going down to seven or six percent, but the economy will be slow and sluggish through at least 2012. With all of this debt and government intervention, the economy has been fundamentally transformed forever.
From what I gather from the various sources I read, the global economy is headed towards a major collapse in the future--it must if the economy is to recover and correct itself. I don't think the government or people will allow this correction to take place; instead, they will bring a collapse on through its policies. So either way, if the economy is to be allowed to correct itself or if the government continues to try and transform the economy into a centrally planned economy, we are still headed towards a rough economy. I don't think people will have the knowledge or fortitude to accept the short, quick and intense pain of a necessary correction, like the one that should have occurred last fall; instead they will clamor and demand and elect leadership that will prevent such a thing from happening and who will instead promise more government intervention, and the people will expect for the government to save them. I am sure there are some good news out there.
The government forced a choice on the people by bringing on the recession--have a near economic collapse that would have been necessary to correct all the mistakes made or have the government intervene by expanding it size and scope of power into the private sector in order to prevent this necessary correction. A painful correction or more government. We already know what the people in government and the general public choose.
ReplyDelete