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.


J. Tyler Ballance said...

Everyone shares your frustration with the current economy.

Forgetting political affiliations for a moment, if we could cherry-pick solutions from all sources, what could be cobbled together that would revive our markets?

On the Republican side, we have the, "hands-off" technique that allowed ENRON to run amok and gave us Bernie Madoff. On the Democrat side we have their traditional spending patterns that translate into race and gender patronage, that always gets us more advice on how to live, but few real increases in private sector jobs.

This has been termed the MAN-cession, because White Men have borne the brunt of the layoffs and closures of businesses. Obama policies have produced Acorn-style jobs for minorities and women, but has not focused very many resources at shoring up our manufacturing sector.

We can't compete in a "world market" when our competition is Communist China and other countries where workers get the equivalent of a few dollars per day. During the BUSH years, MILLIONS of manufacturing jobs and specialized machinery was shipped to Communist China. It's gone.

We cannot build our economy on the backs of "service industries" nor can we all become consultants or burger flippers.

America needs to rebuild our strategic manufacturing base. We also must build our society based on MERIT; that means no "affirmative action" quota jobs, no token minority jobs to oversee "diversity" or funded daycare at the office, so Suzy Creamcheese can collect a paycheck while hanging out at the company nursery half of the time. In short, corporations need to be freed to produce, by repealing or amending much of the workplace and environmental laws that have been loaded onto the backs of American businesses in the last forty years. At the same time, the multinational corporations who seek access to American markets, must be FORCED to do their manufacturing HERE. When we buy products in the near future, ninety percent of the products should bear the mark, "Made in the USA."

Anonymous said...

Companies should not be "forced" to do anything here regarding operations. We certainly can take the tax breaks away that often are behind going overseas for labor, but we should incentivize keeping operations in America NOT demand it. The free market does not work if you demand such measures. We must endeavor to incentivize training and development for American companies and reward those companies that give back to the community in which they operate.

J. Tyler Ballance said...

Like Hell, they shouldn't!

Multinational corporations HAVE NO allegiance to America, or to Americans.

We can't allow them to get products made in the slave labor camps of Communist China for pennies, then sell them here in America, undercutting American workers.

If Toyota, Honda, Hyundai, Kia etc. want to sell their products here, then they must be FORCED to build plants here. Some of these companies have token manufacturing here, but they have gotten away with low wage rates that are one quarter what is paid by GM.

Multinationals and domestic corporations have shown that they will not hesitate to screw the American citizens. They will take every opportunity to avoid laws and regulations. If America permits goods that are made in low labor rate countries to be sold here without any restriction, then American workers and their families are always going to lose.

A recent example of corporations screwing Americans and avoiding regulation, are the VISA and Master Card companies. Congress enacted limits to some of the charges they are allowed to charge. But Congress stupidly scheduled the new regulations to go into effect in February 2010. Of course, the credit card companies have rushed to raise rates and penalties on all of us, right away.

Taking a Republican laissez-faire approach will produce more ENRONS. Have any of you wondered why gas prices are still high, even though all market analysts say that there is a glut of supply? When you have a few oligarchs controlling major market segments, then there are no free market forces in play to create an, "efficient market."

America mustn't plead with the multinationals to treat our citizens fairly. We must FORCE these greedy bastards to do the right thing; they shall surely not do what is right on their own.

Anonymous said...

What complete crap Ballance. You are asking to eliminate the demand for those products by our own population and thereby doing away with our basic freedom of purchase power.

Obviously, Ballance you are no capitalist so maybe you would rather be a socialist state. Come to think of alot of those socialistic countries produce some mighty fine baseball players. maybe we should rpevent them from being able to play in MLB because they are too competitive for our own players. Come to think of it, where is the outrage in the fact that the starting pitcher of Game 1 for the Yankees signeda 180+ million contract to PLAY BASEBALL. No, instead people want to focus on CEO's. Please.

The only reason you are focusing on CEO and corporate pay is because the left has steered you there.

John said...

If we had had the kind of press we once had much of this would be covered and exposed. I can remember when we had a press that recognized journalism as the first draft of history. Instead journalism has become no different that those in the penthouses of Manhatten and Wall Street. Remember when you used to be able to tell who worked for the press. Nowadays they are merely a part of the big money system that makes of the entertainment industry.

I recall all the talk about limiting bonus and salaries to corporations and multinationals that would be bailed out but of course it went largely unreported that General Electric's finance divison G.E. Capital was bailed out and because it is linked to General Electric as is MSNBC and the like do you think that the salaries/bonus of the liberals over there came into question? It seems to me that when they target those evil corporations maybe they ought to start with the campaign finance list of donors and just review the ones on that list and see how many of them have come under fire and exactly who the ones that are in the crosshairs of the liberal media contributed to the GOP. Its a liberal lynching of the private sector using the very techniques imployed by the likes of ACORN and others with ties to Chicago divide and conquer politics.

It does not take a rocket scientist to see that there is an intentional shift underway to limit the influence of Wall Street and centralized more control with the FED and other government agencies. What people forget is the very same debate that will take place in the next two years of the Obama term is the same battle we as a nation fought amongst our founding fathers through the likes of great men like Jefferson and Hamilton.

It is apparent that the Obama team wants us to undertake a complete overhaul and reversal of our banking system and move away from our historic position.

Jonathan Scott said...

Unbelievable!! This morning our President evidently met with his economic advisory board and they cam up with the conclusion that they, Congress and others need to do some really inventive things to revive the U.S. economy.

Excuse me, but what the hell was the stimulus package for if not for the very thing they said they need to do NOW.

Face it. This guy may be intellectual and may have been the editor of the Harvard Law review or whatever, but he is proving everyday he is way out of his depth now.

Failed economic policy coupled with a failed foriegn policy and I fail to see any accomplishment whatsoever other than driving all independents back to the GOP!!!!