Is this just a bad dream?

Wednesday-August 25, 2010

Is this just a bad dream?

No, it’s more than that. The nation is in a crisis. Our leaders are off on vacation and the voting citizens are left working for their living and, as a result, they are keeping the nation’s economy from falling further in its free fall.

The Dow is down and new housing starts are at an all time low. They have fallen 27.5%, the lowest since May of 1995. While the administration is in dream mode and telling us that this is the summer of recovery, 500,000 people lost their jobs last week. The new numbers of job losses are expected to be the same this week.

The symptoms of a weak economy have not been extinguished. The administration still believes that more economic stimuli will cure the problem. Since Keynesian economics advocates the public sector to step in to assist the economy in general, it is a significant departure from popular economic thought which predicted – laissez-fair capitalism. Simply put, laissez-fair capitalism supported the exclusion of the public sector in the market. The belief was that an unfettered market would achieve balance on its own. Proponents of free market capitalism include the Austrian School of economic thought; one of its earliest founders, Fredrich von Hayek 1899 – 1992, also lived in England, alongside John Maynard Keynes, 1883 – 1946 ( Keynesian economics ). The two had a public rivalry for many years because of their opposing thoughts on the role of the state in the economic lives of individuals.

The bad dream is that under Hayek things could be good and under Keynes things are a nightmare. Part of the bad dream is that every democrat, progressive liberal etc., etc., has tried some form of government intervention in the economy and it has always failed. Now it has really failed.

When an administration has advisors that continually recommend the wrong advice and or advice that is late in coming then we need to rectify the problem. If this administration was a corporation, each member of the team would be fired, including the chief executive. Simply put, a nightmarish scenario like this one will not improve. How can it? We have no significant growth. What market and what leading economic indicator are up?

I am not an economist. I am a person that is trying to get the word out. I read and I observe. What I have read and what I have observed is a nightmare. With all the rumors about the president’s ideology, his religious affiliation or even his status as an American citizen, we must start to realize that he is just plain wrong and his actions are wrong. The people who came out to support him were wrong and the people who voted for him were wrong. There are now too many wrongs in the plus - minus column.

Yesterday, I wrote that with each election we should be gaining more liberty and more freedom. Political Science will tell us that various forms of government and government action will take freedom away for the expressed purpose of control. This is also a nightmare that we must now realize is a reality.

James Madison was the fourth President of the United States, 1809 – 1817, he was also a founding father (1751-1836). He said: “Do not separate text from historical background. If you do, you will have perverted and subverted the Constitution, which can only end in a distorted, bastardized form of illegitimate government.”

The administration has separated the text of reality from the text of historical background. This administration has subverted the constitution along with every other progressive regime in our history. The basis of a free government is to improve the lives of its citizens and its culture. We now have the opposite. With the latest economic trends and the latest job numbers many of our citizens are having nightmares and it can now be blamed on our government.

Many people are working, just to survive. Many are working, because they have to. And many want to work, because they need to. With no plan for real job creation or a real plan for economic growth, we will continue this nightmare. In two years, people will be calling for four more years. These are the voices that were wrong to begin with.

To create jobs, you need a confident business sector that will invest in job creation. No government program will accomplish this. Just read the words of Hayek, then compare them to Keynes.

Gregory C. Dildilian
Founder and Executive Director
Pinecone Conservatives

A footnote: There are 69 days until we vote in the midterms. I can give you 69 reasons why you need to get out the vote to change Congress. The first reason is the bad dream that we are now witnessing.