Posted: November 23rd, 2008 by Militant Libertarian
From: Ilana Mercer http://barelyablog.com/?p=2290
The American economy is being socialized. The government has nationalized the mortgage market and a good chunk of the investment banks. No principled argument is offered against the government acquiring a share of the auto industry. The debate hinges only on whether the government’s growing “investment” portfolio will solve the “problem” or not.
Government intervention in the economy invariably results in a complete takeover. Consequently, once it was agreed that this one industry, GM, was too vital to fail, the government went on to specify the conditions of the baleful bailout. The political ponces—the people who do nothing but sap the productive economy—want to see a viable business plan, no less.
The public and the experts think nothing of questioning the State’s financial savvy–its ability to “plan” a viable industry. Where is the money coming from—this is never asked. The soundness of borrowing or printing funny money out of thin air to implement the grand plans—this is never doubted. (Except by Ron Paul.)
Public works and big-time spending by government are planned as ways to get the economy going. Even Lou Dobbs, The Independent, fails to question Paul Krugman, the Keynesian commie, as to why more credit expansion and spending is key to recovery.
Note: Every economist touting the Keynesian twaddle of spending ourselves out of the recession is speaking the language of politics, not economics. The laws of economics are natural, immutable laws. Just as the average Joe and Jane can’t spend themselves out of bankruptcy—try suggesting that to your banker, won’t you?—neither can the government.
With its capacity to inflate the economy with worthless fiat money, all the state does is pacify some politically powerful debtor sectors, to the detriment of politically powerless creditor sectors and other solvent citizens. We hope: The difference between Generic Joe’s insolvency and the government’s is that the first will not bring down the entire country.
A good guide to the perplexed is Mises.org’s “Bail Out Reader.”
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