I've been avoiding the radio talk-shows about this, 'cause frankly it is rather boring and if we all really understood it, we'd be scared to death. So I'm going to throw out my random thoughts on the subject as I needed to rant about something and leave it at that.
From my BYU Econ 110 class from "his-tests-are-so-hard-he-must-be-evil" Brother Kearl, I do "get it"... I get the reasons why the government steps in with our tax dollars for corporate bail-outs and farm subsidies. Its all in the name of maintaining "economic stability", but at what cost?
A free market economy should be one in which businesses and people are allowed to succeed and allowed to fail. If a company is making bad decisions then the losses they face are good lessons learned. The government is rewarding incompetencies in the market by bailing them out.
If we let companies fail, there will be customers that suffer with them, but the market can heal itself very quickly if left to its own merits. We need to get back to the pure and basic economic system of "I provide a good or service of value to you, for which you provide me a good or service that is of value to me."
Money, in the form of bills, coins, checks, and bank accounts is a great tool, but remember, it is all fake money and has no value in and of itself. Money is simply the means of trading goods and services of value.
I imagine that if world markets colapse, that money will be the least of anyones worries and people will be more concerned about trading goods and services of value to survive and to be successful.
The worst part of the bail-outs is the nationalization, or government taking control, of these businesses. We are subtly sliding down the slippery slope of socialism. We are allowing the government to grow in power, size, and the expense to support it. Most Americans don't even realize that we are now, more than ever, like Soviet Russia was 20 years ago. We are taxed 400% more now than those who declared independence from their mother country for unjust taxation. Where is the free market America that Bastiat (author of The Law) saw in the 1850's? I want it back!
The solution? Vote for people who want to downsize government. Vote for people who will start eliminating government programs that are better left in the hands of private enterprise. Vote for people that will reduce taxes and that will live within a budget. Vote for people who want to return the government to its proper role as written in the Constitution and as advocated by our founding fathers.
4 comentarios:
I agree with all that you have said. Only one thing that I am not sure about. The last President that let the market correct itself through us into the great depression. This hurt more people then the ones the made bad business decesions. Where is the dividing line in helping or letting things happen on there own?
Kent
who are you voting for? What are your thoughts about Ron Paul?
Dad, I'll have to look into the history of the Great Depression and see if allowing the market correction was the cause.
Natster,
I am voting for McCain-Palin.
I do agree with a lot of what Ron Paul says. He is a libertarian, not a conservative. He is against the war in Iraq and is against the United States acting to defend freedom in any country but our own, so because of that, I can't vote for him. If he's true to the libertarian platform, then he is pro legalizing pot and pro-abortion and pro gay marriage. I do believe in legislating morality as explained in previous posts, so more reasons why I can't vote for someone like Ron Paul. Bob Barr is the libertarian candidate and I think Ron Paul is out of the race.
On the Great Depression...I just read briefly the stuff on Wikipedia and whoever wrote the entry did a pretty good job stating that the cause of the great depression is still debated over...whether it was a failure of the free market system or a failure of the government to react properly to failing banks.
My own opinion is that it was both. Many of us know and understand the Pride Cycle and our nation surely goes through it. As the economy is good, the nation becomes more materialistic and immoral. Then things collapse and humble us and the cycle starts anew. The Roaring Twenties brought with it a lot of corporate corruption and financial speculation for quick profits.
As the economy went in the dumps, the federal government assumed more power and created more programs.
The same thing has just happened in the last decade. Apparently the current administration believes the bail-outs will prevent another great depression, in essence, the government is assuming even more power in the economy. We'll have to see what happens over the next decade...or perhaps the Good Lord will come again soon and relieve us of all this stress.
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