Thursday, January 15, 2009

Laissez-faire At War Against Socialism

Try acting as a laissez-faire capitalist. It will get you a prison sentence for ignoring all the laws that prevent it.

On the subject of the economy, VP-Elect Biden is reported to have said, "We’re at war.” Biden told this to congressional leaders of both parties during their sit-down with Barack Obama in the Capitol, according to two sources familiar with the exchange.

Gene Healy at Cato at Liberty, writes "Libertarians and conservatives who fear that Obama’s inauguration heralds the coming of a new New Deal have new cause for discomfort, then. FDR’s embrace of the war metaphor was central to building support for the New Deal..."

I hardly think the "embrace of the war metaphor" is the heralding of the new New Deal--but it is most certainly coming, and it is going to hit American's swiftly. Obama already has asked for the $350 billion not yet spent so he has it on his first day in office. Thank that God, in whom we supposedly "trust", to have put some severe reservations about that money in the heads of even the liberal Democrats. They want it properly accounted for.

But there is no doubt it is coming. Obama has trumpeted loudly how about approximatly how much it is going to cost the taxpayer to pay for public works projects which will "pay off" quickly in the form of jobs created, in cash flow, and in such things as alternative energy, which of course the consumer will wind up paying twice for: once in the debt created by the loan, and once in the purchase of the product created.

And our children and grandchildren will pay off the loans that do not create direct profits, as a wind farm or some other means of production might. Someone will have to pay for the infrastructure rebuilding of roads and bridges, which, let's face it, really do need rebuilding.

But the Governors and the Mayors of America have been asked for their wish lists. Obama has already said many things will not be financed from this economic "stimulus" package.

But the fact that it already has a name--"stimulus package"--means the new administration won't have to give it a formal name, like the "New Deal."

Even the New Deal didn't spend as much of the GDP as a percentage, as did Eisenhower's interstate freeway system, which took 35 years to complete. When it was complete, Congress approved funding to go to work building a few more freeways, and upgrading the old ones.

"Roosevelt’s first inaugural address tends to be remembered as an attempt to calm the public, a warning against “fear itself.” The martial metaphors that appear throughout the speech make clear, though, that F.D.R. wanted fear replaced by collectivist ardor," Healy writes.

And what is it that Obama has already been saying? "The US economy will become 'dramatically worse', wrecking the dreams of a generation of Americans, if Congress does not act quickly to drive through huge fiscal stimulus plans, as fresh data showed deepening recession. He said the unemployment rate was at risk of reaching double digits and recession "could linger for years".

While very probably true, it is the rhetoric used in politics about such subjects that, Cato says, is good for nothing but "centralizing power."

How much centralization can a supposedly capitalist economy take, before it breaks down as the forces of collectivist policies clash like butting-heads against the free market ideas so well established and so taken to heart by the very people and corporations who actually make the economy profitable?

It does appear that the big corporations who are reaping billions of dollars are beginning to allow "czarism" to dictate how they operate. There will be a "car czar," for example. Of course, the CEOs and all those in the upper eschelons of the banking and mortgage systems have had to be rightly criticized for doling out hundreds of millions of that money in golden parachutes and bonuses.

But what about the bedrock of capitalism, the entrepreneur, the mom-and-pop operation, the proprietor? Will they be so willing to allow centralization to push them this way and that, when they all know for certain, knowledge gained by experience and from historical perspectives, that decentralization is responsible for profit-making and for profit-motivation.

No one can be too motivated when a czar is looking over your shoulder, and you and I know that such a czar and his/her soldiers can look over the shoulders of small businesses much easier than over the shoulders of the likes of GM and "banks that are too big to be allowed to fail."

Big business and our leaders, both left and right, including the avowed whom Socialist Obama hired who does not need Senate confirmation, are selling the small business owner and the Average Joe down the river.

I hope the Average Joe knows how to quit before he gets behind. He is already saving whatever money he can, rather than spending it. New savings accounts in banks jumped several-hundred percent over the last six months.

But the next thing you know, our New Socialist government will be taxing our savings to pay for the loans they are making because we are not spending our savings. Obama said to Katie Couric just yesterday, "Failure is not an option, not in America."

As far as his Marxist "spread the wealth" attitude goes, I think he intends to use every means at his disposal to spread the misery. He is a Constitutional Law professor, and a brilliant man. I have no doubt that America is going to see him use tricks of law we have not seen before. After all, he has not been sworn in yet, but plans to get his hands on the $350 billion one way or another. He has told Congress he will use his first veto on his first day in office--to get that money. Congress will cave, one way or another.

We should all buy gold, because our paper and coins will soon be worth nothing, comparatively. From 2000 to yesterday, the price of gold rose more than $549 from $280.10, to $829.57, or nearly 350%. Relative to the GDP deflator, the dollar only rose 19.82%.

What will the dollar be worth when Obama gets done manipulating it? The free market, left alone, tells the truth. When manipulated by government economic engineering, it always lies, relative to the free market.

We are at war, but it is the honest capitalist at war against the dishonest, and against the illegal usurping of his powers in the market place by government rules he cannot conform to without become a socialist himself.

Try acting as a laissez-faire capitalist. It will get you a prison sentence for ignoring all the laws that prevent it.

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