PreviewThe people shape their own destiny
-- either as free people or as slaves.

If they remain self-reliant, they stay free.
Ever expanding state power destroys lives.

Government panacea is a defective idea.
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Monday, June 22, 2009

The Farce Goes On

This is dismal.

The American economy sputters, unemployment roles continue to increase, despite government's playful attempt to stem the swelling ranks of the jobless. Government has always made a lousy employer for the same reason that monopolies make for lousy markets.

A monopoly occurs when a single source is the sole supplier of a product or service. The monopoly produces only enough to maximize return to the single source, i.e. profit, and curtails production at that rate.

There is a similar case for a sole consumer or user of a product or service, which more accurately depicts government behavior. The sole consumer case is called monopsony. Monopsony will consume only enough to maximize return to the monopsonist.

Government consumes like a monopsonist. From this fact alone we can conclude only enough economic recovery will be allowed in order to maximize return to the government, not the people.

Further, government consumes what government wants, not what the people want. Governments buy stuff like public housing projects which promptly become infested with criminals. Under the Obama administration, government also buys things like "development research" from GE because that is a slick way of handing wads of money to administration buddies like Mr Immelt. No one really want this "research," or else a consortium of private developers would band together and spend their own money buying the research.

Governments are funded by taxation, which is a drag on the people. The American government discovered it can tax future generations (who cannot vote) by borrowing. The Obama administration presently seeks to borrow from the Chinese.

Another way government can tax is to inflate the currency. Technically, inflation occurs when a government prints more money. In the US, inflation concerns us only if it results in consumer price increases.

This matters because the US has inflated the dollar by 15.9% over last year yet consumer prices are down 1.3%, and unemployment up nearly 4% over a year ago. The economy is shrinking. American industrial output is off 12.8% from 1 year ago. Real Gross Domestic Product is forecast to be off 3.9%. If nothing else, this proves the Obama administration's economic plan of inflation is not a remedy. Inflation is only a tax and a drag.

Incidentally, inflation taxes the poor the hardest. Consider that you might invest in a house or education. The poor are not so. Because they have so little they must keep most of their wealth in cash. So when the value of their currency goes down, they have no escape. The government has succeeded in taxing the poor.

Thus we have a situation where politicians who will not pay the bill are buying stuff no one really wants and we get shafted. Big Government is at best a drag on the people.

(All figures according to the Economist)


Its the (insert foreign name here) fault!

Mr Obama slickly tried to blame American problems on international trade, thus blaming our current economic problems on your new, made-in-China television. But the current trade imbalance is is only $711 billion, or roughly half the size of the increase in the national debt during the current administration.

Government spending is government telling the economy what to be. The problem with the American economy is government interference, not something Chinese or too much free market.


Distributing misery

Redistribution of wealth is revealing itself in the slaughter of Chrysler and GM and WaMu and so on. If you try to say G. Bush is to blame, shall I mention this catastrophe started after the 2006 elections? Shall I point out the Democratic control of Congress, where the laws are made?

All they have to do is leave us alone, then we will make lots of money which they can tax and feather their nests. But no. they say they don't want to see money earned fairly, but distributed "fairly." Some poor schnooks will benefit and be loudly trumpeted.

Of course they take control of our ability to make a living. This can only make us miserable. They will make themselves and their political buddies rich. And the authoritarian elitists will behold the widening gulf between the politically connected rich and the politically unconnected and smugly smile. The commoners are suffering, Hooray for Elitism!


The real remedy

Government ought to get out of the way of individuals who know how to build capitalist economies. Naturally, an authoritarian like Mr Obama desires to impede free markets, or anything free.

How close are we to the time when we must re-establish our constitutional government and re-assert the people's right to govern themselves? Are we willing to take along our hanging rope?


Take Action

These same screwed-up twerps are going to bring us environmental policy and (Heaven help us!) health care.

Contact your congresspeople. Tell them to stop messing with us.

For the Senate,

For the House

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