Friday, October 30, 2009
What are We thinking?The beginning of the end of the Free Market?
First of all, I want to freely admit I am no economist. I am however an avid student of history. Will so many credentialed economists in complete disagreement regarding the state of the current economy and the very nature of the so-called "stimulus" package it is no wonder that the average voter feels completely in the dark.
When do we as Americans stand up and finally once and for all tell the elite class that enough is enough?
During the last few weeks we have all heard about the contention that the health care system must be reformed, but does reform have to mean "single-payer" or "public option"? Why is it that so many in Washington on the left of the asile demand that this be the means of providing reform? Why is anyhting less than "single-payer" deemed a flawed and failed approached by liberals and progressives?
In a word; control.
Many Americans today probably still believe they still live within a "free market" capitalistic system. Truth be told that by the end of President Obama's term we very well may not represent anyhting close to free market. Why?
For almost the entire last century our government controlled what amounts to about 15% of the U.S. economy on average. 15% never really felt like very much. What would you say if you were to learn that it is projected that if the U.S. government takes control of the health care system that the government will end up controlling almost 50% of the U.S. economy.
Control? Yes. Power? Yes. This debate on health care is not about health care. Its about a vision that the left has at "transforming the society". Listen to the rhetoric of the left regarding corporations and CEO's. The wealth (private wealth not public wealth) has been equated with greed by the left in an attempt to tarnish those that have been successful in the private sector. This move on healthcare is not about insuring 47 million more people, but about taking over control of a significant aspect of the economy whereby the government has no regulator. In fact, the government will have a monopoly on the system as in the end it will force private insurers out. What are we left with then? Zero options thats what.
How has the government managed to take control over the econonmy virtually under stealth-like conditions? Simple. The Obama administration has used bailouts as a means of gaining entry into various sectors of the economy in order to bring them under control of Washington and out of the free markets. Bailouts in areas such as finance, mortgage, insurance and auto manufacturing have changed the landscape of the free market system. Those that think that the government will return control are naive. The whole notion od "systemic risk" was the equivalent economic scare tactic no different than the accusations that the Bush adminstration used 9/11 routinely as a national security scare tactic.
There are many that will defend this outright intrusion into the private sector. If you take the mortgage industry for example, one has to ask why Fannie and Freedie were neccessary in the first place. Canada does not have a Fannie/Freddie equivalent and yet as a percentage of population only has 1% less in home ownership. In truth, the U.S. Government is the culprit behind the housing crisis. It is an example of how the government intentionally confuses buisness models with social programs. They turned to Fannie/Freddie to dish out millions of subprime mortgages as social policy and through business guided principle.
Americans will be subsidizing the auto industry/manufacturing for the next twenty plus years. There is no quick fix for an industry that has been unable to compete globally for over a decade. Its costs are too high and by having the government in control of the industry it will not be long before the world will begin to perceive the involvement as purely protectionist in nature. Liberals point to the cash for clunkers as some great achievment in the area of sales growth, but the fact is the government in the end is on the hook for paying for those sales in the form of the rebate. Most car buyers under the program are unaware that the rebate is deemed taxable income.
Our annual deficit for 2010 assumes a robust economic recovery. What happens if its not so "robust"? What happens when unemployment continues to rise? Well, for starters in classic liberal social policy unemployment benefits will be increased or extended thus creating an even greater burden on the federal deficit.
At some point we have to get through the smoke and mirrors of Washington. They are simply cashing checks they cannot realistically cash without increasing taxes on every American. What happens should the Chinese decide to cash in its chips regarding America? What if they decide to start selling the dollar? Do we really think that we control our own destiny anymore as the generations before us have?
It is shameful the manner in which this generation in power has betrayed everything the greatest generation and the ones before it have fought to create and defend in this country. Its ironic that a generation that rejected any government authority some forty plus years ago now yields that authority to destroy the very institution of the free market system.
The fact is every major issue being debated right now in the Congress is about control. Its not so much about control of you, but control of the wealth. Remember, we have a President who believes in "redistributing" the private wealth in this country. Never lose sight of that fact.
Its time we start looking through the prism of "redistribution" ideology when we examine anything this government undertakes in the future. if they are successful in taking over health care you can bet the next industry they take on will be energy.
If we are not careful, this government will find some manner in which to take over the energy industry whereby being able to monopolize that sector of the economy as well. Remember in 2007, the Oil Industry CEO's were the bad guys. Expect that rhetoric to return when we see gas prices rise in 2010.
Do you want to live in a Free Market system? If so, its time to get involved and get engaged. If you do not, it will not be long before you or your employer will be under the boot of Uncle Sam.
Posted by FoodforThought at 9:27 PM