statism

Statist Policy and the Great Depression

It’s difficult to promote good economic policy when some policy makers have a deeply flawed grasp of history.

This is why I’ve tried to educate people, for instance, that government intervention bears the blame for the 2008 financial crisis, not capitalism or deregulation.

Going back in time, I’ve also explained the truth about “sweatshops” and “robber barons.”

But one of the biggest challenges is correcting the mythology that capitalism caused the Great Depression and that government pulled the economy out of its tailspin.

To help correct the record, I’ve shared a superb video from the Center for Freedom and Prosperity that discusses the failed statist policies of both Hoover and Roosevelt.

Now, to augment that analysis, we have a video from Learn Liberty. Narrated by Professor Stephen Davies, it punctures several of the myths about government policy in the 1930s.

Professors Davies is right on the mark in every case.

It Doesn’t Seem Possible, but France Is Going from Bad to Worse

Remember when Paul Krugman warned that there was a plot against France? He asserted that critics wanted to undermine the great success of France’s social model.

I agreed with Krugman, at least in the limited sense that there is a plot against France. But I explained that the conspiracy to hurt the nation was being led by French politicians.

Simply stated, my view has been that the French political elite have been taxing the nation into stagnation and decline and there is every reason to think that the nation is heading toward a severe self-inflicted fiscal crisis.

But it turns out I may have been too optimistic. Let’s look at some updates from Krugmantopia.

We’ll start with a report from the Financial Times, which captures the nation’s sense of despair.

…if the country’s embattled socialist president was hoping for some respite from what has been a testing year, he can probably think again. … the French economy barely expanded during the second quarter of this year after stagnating in the first. …the result will make it all but impossible to achieve the government’s growth forecast for 2014 of 1 per cent… Bruno Cavalier, chief economist at Oddo & Cie, the Paris-based bank, says one reason is the huge constraint on disposable income posed by France’s tax burden, which has risen from 41 per cent of GDP in 2009 to 45.7 per cent last year – one of the highest in the eurozone.

Occupy DC Infiltrated, Calls for Violent Revolution

Occupy Wall Street - what’s that?  They’ve gone away, right? They haven’t.  They’re regrouping and preparing to ramp up.  Nick Tomboulides, Andrew McCaughey, and Danielle Saul recorded some remarks made by Mike Golash, former President Amalgamated Transit Union, Local 689, and others at a OccupyDC meeting held August 19, 2012.

They are not hiding their goals anymore - and no matter what your stance on the current state of our government, what is being said here should shock all patriots.

GOLASH: Progressive labor is a revolutionary Communist organization.  Its objective is to make revolution in the United States, overthrow the capitalist system, and build communism.  We’re trying to learn something from the historical revolutions of the past, the Russian revolution, the Chinese revolution, the revolutions in Cuba and Eastern Europe.

What can we learn from them so we can build a more successful movement to transform capitalist society?

The “historical revolutions of the past” don’t include the American Revolution - a revolution which created true freedom and prosperity and has been a model for such - but includes revolutions in which dictators were created who brutally tortured and slaughtered millions of their own people?

Gallup: Voters trust Romney over Obama on economy

Over the last month or so, President Barack Obama’s campaign has been hammering Mitt Romney over his time at Bain Capital, making charges of outsourcing and carelessly throwing around potential illegal activity. But voters aren’t buying it. In fact, a new Gallup poll shows that voters trust Romney more on the economy than Obama and view his time at Bain Capital as a positive:

Despite concerted Democratic attacks on his business record, Republican challenger Mitt Romney scores a significant advantage over President Obama when it comes to managing the economy, reducing the federal budget deficit and creating jobs, a national USA TODAY/Gallup Poll finds.

By more than 2-1, 63%-29%, those surveyed say Romney’s background in business, including his tenure at the private equity firm Bain Capital, would cause him to make good decisions, not bad ones, in dealing with the nation’s economic problems over the next four years.

The State of Our Union is Dire

Tonight President Obama will deliver his third State of the Union address, but something that happened yesterday illustrates the true state of our union far better than anything you’ll hear tonight. As we reported yesterday, Senator Rand Paul (R-Ky.) was detained by Transportation Security Administration (TSA) officials at the Nashville International Airport. Paul was detained by TSA officials after refusing an invasive full body pat-down following some kind of anomaly in the body scanner’s reading. Some might argue that there’s nothing to get worked up about here. After all, shouldn’t we expect senators to be treated like everyone else? But it is precisely because everyday citizens are subjected to these invasive procedures on a daily basis that Sen. Paul’s detention is so alarming. His high-profile detention by the TSA serves as a reminder that Americans are having their privacy violated every day on their way through the nation’s airports.

You probably won’t hear about Sen. Paul’s detention by the TSA in President Obama’s address tonight. You’re not likely to hear anything about it in the GOP response delivered by Governor Mitch Daniels (R-Ind.), nor even in the Tea Party response offered by businessman and former presidential candidate Herman Cain (R-Ga.). You probably won’t hear about the National Defense Authorization Act, the Stop Online Piracy Act, or any of the other manifold ways that Washington has undermined the Bill of Rights. But whether our politicians want to raise these issues or not, these are the issues that define the state of our union in the 21st century. And the state of our union is dire.

Chris Dodd Thinks Anti-SOPA/PIPA Websites Are Abusing Their Power

If you’re like me, you hoped that you wouldn’t be hearing anything more from allegedly corrupt former Senator Chris Dodd (D-Conn.) after he decided in 2010 not to seek a sixth Senate term. Unfortunately those hopes were dashed when the Motion Picture Association of America (MPAA) decided it just couldn’t pass up the opportunity to hire somebody who allegedly knows exactly what it takes to buy a senator. The MPAA selected Dodd as its new head lobbyist chairman and CEO last year. Now Dodd is taking aim at Wikipedia, Google, and other websites involved in today’s protest against the SOPA/PIPA internet censorship legislation pending in Congress:

It is an irresponsible response and a disservice to people who rely on them for information and use their services. It is also an abuse of power given the freedoms these companies enjoy in the marketplace today. It’s a dangerous and troubling development when the platforms that serve as gateways to information intentionally skew the facts to incite their users in order to further their corporate interests.

5 Reasons Obama Should Stop #SOPA & #PIPA With Veto Threat

Given President Obama’s first instincts to centralize power in Washington and expand his own executive power, it might seem unlikely that he would issue a veto threat against the Stop Online Piracy Act (SOPA) and its Senate counterpart, the Protect IP Act (PIPA). But we might be able to persuade him if we speak in language that is well understood at the White House, which is the language of reelection. While the Obama campaign might think backing SOPA/PIPA will help the president’s reelection efforts by way of generous campaign contributions from Hollywood, the White House might want to consider that signing SOPA/PIPA into law could damage his chances of reelection in at least five important ways.

1. SOPA/PIPA will alienate independents. No question about it, independents love and are well-informed about threats to their civil liberties. The Obama campaign might want to remember an ACLU poll from 2007 that showed a large majority of independents insisting that the next president should restore civil liberties that were eroded during the eight years of the Bush administration. That President Obama largely hasn’t restored those civil liberties hasn’t gone unnoticed. Maybe that’s why new polling shows Ron Paul and Mitt Romney beating Obama and even Rick Santorum nipping at his heels among independents. Many independents are independents precisely because they don’t trust either party to protect their civil liberties. Obama can kiss those independent voters goodbye if he signs SOPA/PIPA into law.

Conservatism versus the Charlatans of Sophistry

Today, the level of political animus and vitriol seems to be on a nearly vertical trajectory, with both sides pulling out all rhetorical stops in an effort to win converts to their ideology. For a time this seemed to be just a partisan war, but I am beginning to believe that it is much, much deeper than that. I believe we are at one of those great crossroads in our nation’s history where we must assess who we are and what values we hold before we can come to agreement on policies that reflect those beliefs. On the ideological left is a philosophy which elevates the state above the individual, which says we as individuals can’t be trusted to make correct decisions and must therefore be governed by a technocrat oligarchy of (theoretically) unbiased bureaucrats. These are the intellectuals and the scientific “experts” who are smarter than the rest of us and will therefore make wise decisions that we are forced to accept now, and at some distant point in the future we will pay homage as beneficiaries of that wisdom.

This philosophy can be seen in efforts to ban the incandescent light bulb, regulate salt and sugar intake in our diets along with the use of trans-fats; in the use of the tax and regulatory codes to force us into smaller, more fuel efficient cars. It can be seen in attempts to ban all public expressions of religious belief and in the rigging of the free market in favor of “renewable” energy sources by providing taxpayer subsidies that hide the true cost.

On the ideological right is a philosophy that holds the individual above the collective, that sees government as a necessary evil to be kept under tight constraints and against which we must jealously guard our liberties from the encroachment and expansion of government power.

Occupy Wall Street frustrations are understood, “solutions” are dead wrong

For the last few weeks, protesters have camped out in New York City to express their grievances with Wall Street. The complaints are somewhat familiar and to some extent, I can understand where they’re coming from. They are upset with what they see as government colluding with corporations for taxpayer-funded bailouts during very tough economics times.

The frustration with corporatism is understandable, libertarians and free market conservatives have expressed the same sentiment for years only to take a back seat to the idea that what’s “good for business” is good policy. But as we’ve come to learn, so-called “pro-business” policies aren’t always a good deal for taxpayers. And by that I mean that we truly want a level playing field, but not through excessive taxation or regulation. Rather, keeping government out of the business of picking winners and losers.

But some members of the nascent “Occupy Wall Street” have expressed demands (note that these demands are unofficial), which for all of their supposed distrust of government, these guys have a very utopian idea of what government should be — likely enough to make Karl Marx and Che Guevara proud. Nevermind that they would be economic suicide.

Among the suggested demands for the movement are (with my comments next to them):

The progressive Contract for America

Could they at least get an original name?

On Monday afternoon, MoveOn.org and Rebuild the Dream announced a campaign to build up a popular movement that could match (if not surpass) the debt reduction crowd in both size and energy. And they have borrowed a concept from former House Speaker Newt Gingrich (R-Ga.) as their organizing principle.

The campaign, led by Van Jones, President of Rebuild the Dream; Justin Ruben, Executive Director of MoveOn.org; and Rep. Jan Schakowsky (D-Ill.), among others, is debuting a new Contract for the American Dream. They describe it as “a progressive economic vision crafted by 125,000 Americans … to get the economy back on track.” Its debut will involve a nationwide day of action, as well as an ad in The New York Times to run sometime this week, organizers said.

This “Contract” is very illustrative of the core tenets of modern liberalism – that it is the government that drives the economy, and that the government has every right to commandeer your money if it believes it has a better means of using it. Remember that the government is not some abstract and omniscient system; it is merely a group of power-hungry individuals with enough naivete to believe they know more than the rest of us:

The basic premise of the campaign is that America isn’t broke, it’s merely imbalanced. In order to stabilize the economy, politicians should make substantial investments in infrastructure, energy, education and the social safety net, tax the rich, end the wars, and create a wider revenue base through job creation.


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