Wednesday, January 8, 2014

Federal Government: Mind Your Own Business! Free Markets

When the President of the United States makes a claim that “unemployment benefits creates jobs”, it is absolute proof that the federal government must get out of our economic system. The POTUS has absolutely no experience in economic affairs but he is only the tip of the iceberg when you talk about politicians and bureaucrats in the federal government. The statement by the POTUS alone should be enough for most people to agree the federal government is not the right mechanism for growing an economy.

But for the left and the emotional citizen proof may be needed. Every economic “fix” could be termed as “imbecilic” (idea of somebody with low IQ: in a former classification system, somebody with an IQ between 25 and 50 and a mental age of between three and seven years). I use the term because it describes the economic intellect of most politicians and federal bureaucrats.

First, if the government could just create a vibrant economy by passing a law or implementing a government policy wouldn’t they have done it already? The opposite is actually true as we see the more the federal government gets involved in the economy the worse it gets. There are reams of studies supporting this assertion but I know the people that need to read it will not - so I will not waste any time arguing the facts. I offer this as a perfect example: If fixing the economy means people need jobs and higher wages, why not pass a law that everyone be employed and make the minimum wage for those jobs a $100.00 an hour? Why can’t the federal government just mandate jobs and wages? It is called the “laws of economics.”

Economics is very simple, and creating a vibrant economy is even easier. The answer is to allow individuals and businesses to operate without oppressive taxes and regulations. Boom!  Done! The economy will take off. All we need to do is close most of the Federal Government, layoff 75% of the federal bureaucrats, end welfare for capable Americans, tie Social Security directly to the people that contribute, and shut down Medicaid and allow private charities to handle healthcare for the poor, make the federal tax a flat 10% that every working person pays, limit terms for politicians, make congress part time and boom!

If you think that is too aggressive, we can simply start by freezing federal spending and stop the ability for the federal government to borrow or print money. Even that will send the economy roaring.

The laws of free market capitalism are extremely resilient as we have seen over the past 5 years with the way it brushes off the absolute assault that has taken place under the current federal regime. Any system other than capitalism would have collapsed under the pressure! Just imagine if the free markets were actually free like they were under President Regan? Even then there was too much federal intrusion but I would take the 80’s over the past 5 years in a heartbeat.

The economy is being smothered by the federal government. It is why the founders placed so many restrictions (in the US Constitution) on its role in the lives of Americans and their economic pursuits. I wish when it comes to economic policy the federal bureaucrats and “dogooders” would just mind their own business!

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